Cooper Story

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CTB -- USA Stock  

USD 57.24  0.91  1.62%

Cooper Tire Net Income Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 12,714.4. The current year Average Assets is expected to grow to about 3.2 B, whereas Revenue Per Employee is forecasted to decline to about 278.3 K. The primary aim of this article is to break down Cooper potential for March. We are going to analyze if Cooper Tire is reasonably priced going into March.
Published 3 days ago
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Will holding Cooper (NYSE:CTB) be justified in March 2021?
The company has a beta of 0.2454. Let's try to break down what Cooper's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Cooper Tire will likely underperform. The beta indicator helps investors understand whether Cooper Tire moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Cooper deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Cooper Tire Rubber. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Cooper Tire

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cooper Tire's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cooper Tire in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cooper Tire. Your research has to be compared to or analyzed against Cooper Tire's peers to derive any actionable benefits. When done correctly, Cooper Tire's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cooper Tire Rubber.

How important is Cooper Tire's Liquidity

Cooper Tire financial leverage refers to using borrowed capital as a funding source to finance Cooper Tire Rubber ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cooper Tire financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cooper Tire's total debt and its cash.

How Cooper utilizes its cash?

To perform a cash flow analysis of Cooper Tire, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cooper Tire is receiving and how much cash it distributes out in a given period. The Cooper Tire cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cooper Tire Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 459.14 Million

Payment of 147 shares by Gerald Bialek of Cooper Tire subject to Rule 16b-3

Legal trades by Cooper Tire insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cooper insider trading alert for payment of common stock by Gerald Bialek, VP CFO & Treasurer, on 16th of February 2021. This event was filed by Cooper Tire Rubber Co with SEC on 2021-02-16. Statement of changes in beneficial ownership - SEC Form 4. Gerald Bialek currently serves as interim chief financial officer of Cooper Tire Rubber [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Cooper Tire Investor Appetite?

Cooper Tire Rubber currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.12. However, we do advice investors to further question Cooper Tire Rubber expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Returns Breakdown

Return on Investment19.31
Return on Assets0.0439
Return on Equity0.0729
Return Capital0.0901
Return on Sales0.0766

Will Cooper Tire current rise continue?

Current value at risk is at -3.4. Cooper Tire Rubber currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.12. However, we do advice investors to further question Cooper Tire Rubber expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Whereas some companies under the auto parts industry are still a bit expensive, Cooper Tire may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cooper Tire.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Cooper Tire Rubber. Please refer to our Terms of Use for any information regarding our disclosure principles.

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