Mr. Cooper Group Inc (COOP)COOP

Mr. Cooper Group Inc. (NASDAQ: COOP) Stock Overview

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Company Profile

History and Background:

Mr. Cooper Group Inc., formerly known as Nationstar Mortgage Holdings Inc., was founded in 1983 as a mortgage loan originator. The company has grown through acquisitions and organic growth to become one of the largest non-bank mortgage originators and servicers in the United States.

Core Business Areas:

• Origination: Mr. Cooper originates mortgages through various channels, including retail, wholesale, and correspondent lending.
• Servicing: The company services over 3.9 million mortgage loans with an outstanding balance of approximately $779 billion as of June 30, 2023.
• Xome Realty: Mr. Cooper also operates Xome Realty, an online real estate marketplace that provides resources for homebuyers, sellers, and investors.

Leadership Team and Corporate Structure:

• President and CEO: Christopher J. Marshall
• Executive Vice President and Chief Financial Officer: Erik G. Wasson
• Executive Vice President, Chief Human Resources Officer: David L. Elliott
• Executive Vice President, Chief Operating Officer: James A. Cappacio
• Executive Vice President, Head of Production and Technology: David A. Lykken
• Executive Vice President, Head of Servicing and Xome: Lisa A. Concepcion
• Executive Vice President, General Counsel, and Secretary: David A. Kittle
• Executive Vice President, Chief Marketing and Digital Experience Officer: David R. Zinsner
• Executive Vice President, Chief Information and Security Officer: Kimberly L. McCalman
• Executive Vice President, Head of National Sales and Correspondent: David S. Crowder
• Executive Vice President, Head of Third Party Originations and Capital Markets: Christopher S. Marshall
• Executive Vice President, President of Xome: Michael A. Duryea

Top Products and Market Share:

Products:

• Mortgages: Mr. Cooper offers a variety of mortgages, including conventional, FHA, VA, and USDA loans.
• Refinance options: The company also offers various refinance options to help homeowners save money on their mortgage payments.
• Home Equity Loans and Lines of Credit: Mr. Cooper offers Home Equity products to help homeowners access the equity they've built up in their homes.

Market Share:

• Mr. Cooper is the second-largest non-bank mortgage originator in the United States, with a market share of approximately 5.3% in the first half of 2023.
• In the mortgage servicing market, the company holds the fourth-largest position with a 5.5% market share as of June 2023.

Product Performance and Market Reception:

• Mr. Cooper's online origination platform, Mr. Cooper Connect, has been well-received by customers and industry experts.
• The company's digital marketing initiatives have also helped to drive growth in its origination and servicing businesses.
• However, Mr. Cooper faces competition from larger banks and non-bank mortgage lenders, which can put pressure on pricing and margins.

Total Addressable Market (TAM):

The TAM for the US mortgage market is estimated to be over $10 trillion. This includes both the origination and servicing markets. Mr. Cooper is well-positioned in this market due to its size, scale, and digital capabilities.

Financial Performance

Recent Financial Statements (Based on latest available financial reports):

• Revenue: $2.24 billion in the second quarter of 2023
• Net Income: $412.9 million in the second quarter of 2023
• Profit Margin: 18.4% in the second quarter of 2023
• Earnings per Share (EPS): $1.82 in the second quarter of 2023

Year-over-Year Comparison:

• Revenue increased by 37% year-over-year in the second quarter of 2023.
• Net income increased by 72% year-over-year in the second quarter of 2023.
• Earnings per share increased by 73% year-over-year in the second quarter of 2023.

Cash Flow and Balance Sheet Health:

Mr. Cooper has a healthy balance sheet with strong cash flow generation. The company's cash and cash equivalents balance was $1.4 billion as of June 30, 2023. The company also has a low level of debt, with a debt-to-equity ratio of 0.39.