Stock in the News: Cooper-Standard Holdings Inc. (NYSE: CPS)

On 20 Dec 2019, Cooper-Standard Holdings Inc. (NYSE: CPS) spotted trading -57.25% off 52-week high price. On the other end, the stock has been noted 25.85% away from the low price over the last 52-weeks. The stock changed 5.76% to recent value of $33.25. The stock transacted 863737 shares during most recent day however it has an average volume of 255.81K shares. The company has 16.88M of outstanding shares and 16.47M shares were floated in the market.

Cooper-Standard Holdings Inc. (CPS) recently stated results for the third quarter 2019.

Cost Reduction and Restructuring Initiatives

The Company remains focused on reducing ongoing costs through improved operating efficiency and the further rightsizing of its operating footprint and overhead expenses.  In addition to actions reported and implemented in 2018 and the first half of 2019, the Company is implementing several additional restructuring and cost reduction initiatives that are predictable to reduce expenses in 2020 and beyond.  These additional initiatives include the transition from a regional management structure to a leaner, more effective and efficient global organization structure, further rightsizing of selling, general, administrative and engineering (SGA&E) expense, and structural cost reductions through the closure of 10 facilities.  Restructuring expense related to planned headcount reductions is predictable to be $7 to $9M with annualized savings resulting in a payback of less than one year.  The restructuring expense related to facility closures is predictable to be in the range of $20 to $25M including $11M in restructuring expense already incurred. The related structural cost savings are predictable to drive a cash payback in less than two years.

Liquidity and Cash Flow

At September 30, 2019, Cooper Standard had cash and cash equivalents totaling $323.1M.  Net cash provided by operating activities in the third quarter 2019 was $38.9M and free cash flow for the quarter (defined as net cash used in/provided by operating activities minus capital expenditures) was an inflow of $3.3M.

In addition to cash and cash equivalents, the Company had $183.7M accessible under its amended senior asset-based revolving credit facility (“ABL”), inclusive of outstanding letters of credit, for total liquidity of $506.8M at September 30, 2019.

Total debt at September 30, 2019 was $803.5M. Net debt (defined as total debt minus cash and cash equivalents) was $480.4M.  Cooper Standard’s net leverage ratio (defined as net debt divided by trailing 12 months adjusted EBITDA) at September 30, 2019 was 2.0 times.

Its earnings per share (EPS) expected to touch remained -38.30% for this year while earning per share for the next 5-years is expected to reach at -8.50%. CPS has a gross margin of 12.20% and an operating margin of 4.20% while its profit margin remained 3.20% for the last 12 months. According to the most recent quarter its current ratio was 1.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of 15.01% from the mean of 20 days, 4.42% from mean of 50 days SMA and performed -20.42% from mean of 200 days price. Company’s performance for the week was 15.25%, 22.97% for month and YTD performance remained -46.47%.


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