CooperStandard Holdings, headquartered in Northville, Michigan, manufactures sealing and fluid handling systems for the automotive industry and employs 23,000 people. The company operates in four segments globally and went public in 2010.
Based on our analysis, CooperStandard Holdings has received a 5 out of 5 stars undervalued rating from Cashu, highlighting significant potential for growth relative to its current valuation.
The company's price-to-book (PB) ratio stands at 1.44, notably lower than the sector average of 2.04. A lower PB ratio suggests that the company is trading for less than its book value, indicating potential undervaluation. This metric often attracts investors looking for companies that may be undervalued based on their asset base.
Additionally, CooperStandard's net profit margin is -2.88%, contrasting sharply with the sector's modest 0.25%. While negative margins are concerning, they may indicate that the company is currently facing challenges that could be temporary. If the company can turn around its operations, it may lead to a substantial recovery in profitability.
The return on equity (ROE) for CooperStandard is -200.00%, compared to the sector's 1.98%. A negative ROE suggests that the company is currently not generating profit from its equity base. However, this could also indicate a transformation phase where investments are being made for future growth.
Lastly, the return on assets (ROA) ratio of -4.54%, compared to the sector average of 0.12%, further reflects operational challenges. Yet, it also presents an opportunity for value investors if the company can improve efficiency and asset utilization.
In summary, despite current financial struggles, CooperStandard Holdings presents an attractive undervalued opportunity for investors considering its lower PB ratio and potential for future profitability.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Consumer Discretionary
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