Mr Cooper Group Inc (COOP)

[t1215s]

JWW , How did this get by you ? lol. Those who invested in Mr. Cooper Group (NASDAQ:COOP) three years ago are up 473%

https://finance.yahoo.com/news/those-invested-mr-cooper-group-140308051.html
Mon, March 27, 2023 at 10:03 AM EDT·3 min read

Mr. Cooper Group Inc. (NASDAQ:COOP) shareholders have seen the share price descend 16% over the month. But over three years the performance has been really wonderful. Over that time, we've been excited to watch the share price climb an impressive 473%. So you might argue that the recent reduction in the share price is unremarkable in light of the longer term performance. Only time will tell if there is still too much optimism currently reflected in the share price.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

Check out our latest analysis for Mr. Cooper Group

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Mr. Cooper Group was able to grow its EPS at 68% per year over three years, sending the share price higher. We note that the 79% yearly (average) share price gain isn't too far from the EPS growth rate. Coincidence? Probably not. This observation indicates that the market's attitude to the business hasn't changed all that much. Au contraire, the share price change has arguably mimicked the EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It is of course excellent to see how Mr. Cooper Group has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We regret to report that Mr. Cooper Group shareholders are down 18% for the year. Unfortunately, that's worse than the broader market decline of 13%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 18% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for Mr. Cooper Group (1 shouldn't be ignored) that you should be aware of.

GoGooooooCOOP
GLTA-Ts