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Mr. Cooper (COOP)

Mr. Cooper Group Inc. provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies.

Company profile

Ticker
COOP
Exchange
CEO
Jay Bray
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
WASHINGTON MUTUAL INC, WASHINGTON MUTUAL, INC, WMI HOLDINGS CORP., WMIH CORP.
SEC CIK
Subsidiaries
Nationstar Mortgage Holdings Inc. • Nationstar Sub1 LLC • Nationstar Mortgage LLC ...
IRS number
911653725

COOP stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

27 Jul 22
12 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 629M 629M 629M 629M 629M 629M
Cash burn (monthly) 26.67M 16.67M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 38.61M 24.13M n/a n/a n/a n/a
Cash remaining 590.39M 604.87M n/a n/a n/a n/a
Runway (months of cash) 22.1 36.3 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Jul 22 Jesse K Bray Common Stock Sell Dispose S No Yes 40.23 46,000 1.85M 608,767
21 Jun 22 Jesse K Bray Common Stock Sell Dispose S No Yes 38.32 46,000 1.76M 654,767
20 May 22 Jesse K Bray Common Stock Sell Dispose S No Yes 42.45 46,000 1.95M 1,048,915
19 May 22 Burr Elizabeth Common Stock Grant Acquire A No No 0 2,514 0 32,250
19 May 22 Guthrie Roy A Common Stock Grant Acquire A No No 0 2,514 0 66,442
9 May 22 Jesse K Bray Common Stock Gift Dispose G No No 0 348,148 0 700,767
13F holders Current Prev Q Change
Total holders 1 1
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 254.79M 254.79M
Total shares 187.34M 187.34M
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
KKR Group Partnership 187.34M $254.79M 0.0%
Largest transactions Shares Bought/sold Change
KKR Group Partnership 187.34M 0 0.0%

Financial report summary

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Risks
  • We may be unable to obtain sufficient capital to operate our business.
  • Our substantial indebtedness may limit our financial and operating activities and our ability to incur additional debt to fund future needs.
  • Our earnings may decrease because of changes in prevailing interest rates and/or declines in home prices.
  • We use financial models that rely heavily on estimates in determining the fair value of certain assets and liabilities, such as MSRs and excess spread, and if our estimates or assumptions prove to be incorrect, it may affect our earnings.
  • The IRS could challenge the amount, timing and/or use of our NOL carry forwards.
  • Possible changes in legislation could negatively affect our ability to use the tax benefits associated with our NOL carry forwards.
  • Our hedging strategies may not be successful in mitigating our risks associated with interest rates.
  • We have third-party credit and servicer risks which could have a material adverse effect on our business, liquidity, financial condition and results of operation.
  • Changes in the method of determining the London Inter-Bank Offered Rate (“LIBOR”), or the replacement of LIBOR with an alternative reference rate, may adversely affect interest rates and financial markets as a whole.
  • A significant increase in delinquencies for the loans, including as a result of the COVID-19 pandemic, that we own and service could have a material impact on our revenues, expenses and liquidity and on the valuation of our MSRs.
  • We may not be able to maintain or grow our business if we do not acquire MSRs or enter into additional subservicing agreements on favorable terms.
  • Some of the loans we service are higher risk loans, which are more expensive to service than conventional mortgage loans and may lead to liquidity challenges.
  • We are required to make servicing advances that can be subject to delays in recovery or may not be recoverable in certain circumstances.
  • Our counterparties may terminate our servicing rights and subservicing contracts.
  • We could have a downgrade in our servicer ratings.
  • We may not be able to maintain the volumes in our loan originations business, which would adversely affect our ability to replenish our servicing business.
  • We are highly dependent upon loan programs administered by Fannie Mae, Freddie Mac, the Federal Housing Administration, the Department of Veterans Affairs, the US Department of Agriculture and Ginnie Mae (collectively, the “Agencies”) to generate revenues through mortgage loan sales to institutional investors.
  • We may not be successful in implementing certain strategic initiatives.
  • Technology failures or cyber-attacks against us or our vendors could damage our business operations, and new laws and regulations could increase our costs.
  • Our capital investments in technology may not achieve anticipated returns.
  • We and our vendors have operations in India that could be adversely affected by changes in political or economic stability or by government policies.
  • Our vendor relationships subject us to a variety of risks.
  • We could have, appear to have or be alleged to have conflicts of interest with Xome.
  • Our risk management policies and procedures may not be effective.
  • Our business could suffer if we fail to attract, or retain, highly skilled employees and changes in our executive management team may be disruptive to our business.
  • Negative public opinion could damage our reputation and adversely affect our business.
  • Our business is subject to the risks of earthquakes, hurricanes, fires, floods, health pandemics and other natural catastrophic events.
  • We operate within a highly regulated industry on federal, state and local levels and our business results are significantly impacted by the laws and regulations to which we are subject, as well as scrutiny from governmental or regulatory agencies.
  • We are subject to numerous legal proceedings, federal, state or local governmental examinations and enforcement investigations. Some of these matters are highly complex and slow to develop, and results are difficult to predict or estimate.
  • Unlike competitors that are national banks, we are subject to state licensing and operational requirements that result in substantial compliance costs.
  • Our business would be adversely affected if we lose our licenses.
  • We may incur increased litigation costs and related losses if a court overturns a foreclosure or if a loan we are servicing becomes subordinate to a Home Owners Association lien.
  • Residential mortgage foreclosure proceedings in certain states have been delayed due to lack of judicial resources and legislation and as a result of the COVID-19 pandemic, all of which could have a negative effect on our ability to liquidate loans timely and slow the recovery of advances and thus impact our earnings or liquidity.
  • Our common stock, and any other instruments treated as stock for purposes of Section 382, is subject to transfer restrictions under our Certificate of Incorporation which, if not complied with, could result in the forfeiture of such stock and related distributions.
  • Anti-takeover provisions in our Certificate of Incorporation and Amended and Restated Bylaws (“Bylaws”) and under Delaware law, as well as certain existing contractual arrangements, make a third-party acquisition of us difficult.
  • The market price of our common stock may decrease, and you may lose all or part of your investment.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted.
  • We have provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, at the end of the MD&A section.

Content analysis

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Positive
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Legalese
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Readability
H.S. freshman Avg
New words: custodial, exceeding, goal, instrument, slightly, target, upsize
Removed: entering, payable, pressure, thousand