Cooper-Standard Holdings Inc. (CPS) | Investment Case

1. Company Snapshot

1.a. Company Description

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems.The company's sealing systems include obstacle detection sensor systems, dynamic seals, variable extrusion systems, static seals, specialty sealing products, encapsulated glasses, stainless steel trims, FlushSeal systems, and textured surfaces with cloth appearance.Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, direct injection and port fuel rails, metallic brake lines and bundles, tube coatings, quick connects, low oligomer multi-layer convoluted tubes, and brake jounce lines.

The company's fluid transfer systems consist of heater/coolant hoses, turbo charger hoses, quick connects, charged air cooler ducts/assemblies, DPF and SCR emission lines, secondary air hoses, degas tanks, brake and clutch hoses, air intake and charge systems, transmission oil cooling hoses, and multilayer tubing for glycol thermal management.Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets.The company operates in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally.

Cooper-Standard Holdings Inc.was founded in 1960 and is headquartered in Northville, Michigan.

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1.b. Last Insights on CPS

Cooper-Standard Holdings Inc.'s recent performance was driven by strong Q2 2025 earnings, with the company posting a narrower year-over-year loss due to cost savings. The company raised its full-year adjusted EBITDA guidance, citing improved profitability despite flat sales and industry headwinds. Management revealed 2030 targets for revenue growth and EBITDA margin, which could lead to EPS of over $10. Additionally, the company showcased sustainable sealing solutions on Renault Group's Emblème demo car, highlighting its eco-conscious initiatives. Debt refinancing is also on the table, potentially reducing interest expense.

1.c. Company Highlights

Last Price	30.27
Change Percentage	0.95%
Open	30.24
Previous Close	29.98
Market Cap ( Millions)	534
Volume	69627
Year High	40.67
Year Low	10.38
M A 50	32.84
M A 200	25.3

FCF Yield	6.54%
Dividend Yield	0.00%
ROE	-29.72%
Debt / Equity	-1120.38%
Net Debt / EBIDTA	530.49%
Price To Book	-5.28
Price Earnings Ratio	16.5
Price To FCF	15.28
Price To sales	0.2
EV / EBITDA	8.14

2. Cooper-Standard's Q3 2025 Earnings: A Resilient Performance Amidst Challenges

Cooper-Standard reported a net loss of $7.6 million in Q3 2025, an improvement from the net loss of $11.1 million in Q3 2024. The company's adjusted EBITDA was $53.3 million, a 15.6% increase from $46 million in Q3 2024. Revenue figures were not explicitly mentioned, but the company's guidance for the full year was revised downward due to temporary reductions in customer production volume. The actual EPS came out at -$0.24, missing estimates of $0.5. The company's cash balance stood at $148 million, with $166 million of availability on its ABL facility, resulting in total liquidity of $314 million as of September 30.

Publication Date: Nov -30

                                    📋 Highlights
                                    Operational Excellence::
                                                Achieved 99% green quality/service scorecards and 97% green new program launches, reflecting top-tier performance in operations and product launches.
Financial Recovery::
                                                Net loss narrowed to $7.6M in Q3 2025 vs. $11.1M in Q3 2024, with adjusted EBITDA rising 15.6% to $53.3M, driven by improved margins.
Liquidity Strength::
                                                Ended Q3 with $148M cash and $166M ABL facility availability, totaling $314M liquidity, sufficient to support growth initiatives.
Revised Guidance::
                                                Full-year sales revised down due to customer production cuts, but expects adjusted EBITDA and free cash flow to remain significantly higher than 2024 levels.
Cash Flow Strategy::
                                                Requires $30M+ free cash flow in Q4 to offset $55M interest payment, with F-150 line rate increases and Q1 2026 recovery expected to balance working capital impacts.

                                

Operational Performance and Strategic Imperatives

Cooper-Standard's operational performance remains strong, with 99% of customer scorecards for quality and service being green. The company has delivered exceptional performance in new program launches, with 97% of scorecards green. The company's strategies are built around four key strategic imperatives: delivering exceptional operational performance, leveraging world-class service and technical capabilities, winning new business through innovation, and expanding relationships with fast-growing Chinese OEMs. As Jeffrey Edwards mentioned, "We're proud to be the supplier that our customers turn to for quality components, consistency of delivery, and collaboration on critical design and development of new technologies."

Outlook and Guidance

The company has revised its full-year guidance ranges for sales and adjusted EBITDA downward to reflect the expected impact of temporary reductions in customer production volume. However, Cooper-Standard still expects to deliver significantly higher adjusted EBITDA and positive free cash flow for the full year on sales that are flat to slightly lower than in 2024. Analysts estimate revenue growth of 6.6% for next year, indicating a positive outlook.

Valuation Metrics

Cooper-Standard's current valuation metrics indicate a mixed picture. The company's P/E Ratio is not meaningful due to the net loss, while the P/B Ratio is -5.45, indicating that the company's market value is lower than its book value. The EV/EBITDA ratio is 8.23, suggesting that the company's enterprise value is relatively high compared to its EBITDA. The Free Cash Flow Yield is 6.34%, which is a positive indicator. Overall, the valuation metrics suggest that the company's stock may be undervalued, but investors should exercise caution due to the net debt/EBITDA ratio of 5.3.

3. NewsRoom

Acadian Asset Management LLC Decreases Position in Cooper-Standard Holdings Inc. $CPS

Nov -14

Source: defenseworld.net

Cooper-Standard Holdings Inc. (CPS) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

Continued Year-over-year Margin Expansion and Improved Cash Flow Highlight Cooper Standard's Third Quarter Results

Oct -30

Source: prnewswire.com

5 Broker-Liked Stocks to Watch Amid Impressive Start to Q3 Earnings

Oct -24

Source: zacks.com

Why Fast-paced Mover Cooper-Standard (CPS) Is a Great Choice for Value Investors

Oct -24

Source: zacks.com

Cooper Standard's Industrial & Specialty Group to Be Featured on Inside the Blueprint®

Oct -15

Source: prnewswire.com

Cooper Standard to Discuss Third Quarter 2025 Results; Provides Details for Management Conference Call

Oct -14

Source: prnewswire.com

Cooper Standard Elevates Venkat to Senior Vice President, Chief Information Technology and AI Officer

Sep -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

North America

Expected Growth: 5%

Cooper-Standard Holdings Inc.'s 5% growth in North America is driven by increasing demand for fuel-efficient vehicles, rising automotive production, and growing adoption of advanced materials. Additionally, the company's focus on innovation, cost reduction, and strategic acquisitions have contributed to its growth in the region.

Europe

Expected Growth: 4%

Europe's 4% growth for Cooper-Standard Holdings Inc. is driven by increasing demand for fuel-efficient vehicles, growing adoption of advanced automotive technologies, and rising production volumes in the region. Additionally, the company's strategic acquisitions and partnerships have expanded its customer base and enhanced its product offerings, contributing to its growth momentum.

Asia Pacific

Expected Growth: 6%

Cooper-Standard Holdings Inc.'s 6% growth in Asia Pacific is driven by increasing vehicle production, rising demand for fuel-efficient vehicles, and growing adoption of advanced technology features. Additionally, the region's expanding middle class and infrastructure development are contributing to the growth. The company's strong relationships with local OEMs and its ability to provide customized solutions also support its growth in the region.

South America

Expected Growth: 3%

Cooper-Standard Holdings Inc.'s 3% growth in South America is driven by increasing vehicle production, rising demand for fuel-efficient vehicles, and growing aftermarket sales. Additionally, the region's improving economic conditions, infrastructure development, and government incentives for automotive investments are contributing to the growth.

Corporate Eliminations and Other

Expected Growth: 2%

Cooper-Standard Holdings Inc.'s Corporate Eliminations and Other segment growth of 2% is driven by synergies from acquisitions, cost savings initiatives, and favorable foreign exchange rates. Additionally, the company's focus on operational efficiency and streamlining of non-core businesses also contributed to the growth.

7. Detailed Products

Sealing Systems

Cooper-Standard's Sealing Systems segment provides a range of sealing products, including engine, transmission, and body sealing systems, as well as sealing components for automotive and industrial applications.

Fuel and Brake Delivery Systems

The Fuel and Brake Delivery Systems segment offers fuel and brake system components, including fuel rails, fuel pumps, and brake lines, for automotive and industrial applications.

Fluid Transfer Systems

Cooper-Standard's Fluid Transfer Systems segment provides fluid transfer products, including fuel and brake hoses, quick connects, and fuel filler necks, for automotive and industrial applications.

Anti-Vibration Systems

The Anti-Vibration Systems segment offers anti-vibration components, including mounts, isolators, and dampers, for automotive and industrial applications.

Nevada Automotive Testing and Development

Cooper-Standard's Nevada Automotive Testing and Development segment provides testing and development services for automotive and industrial applications.

8. Cooper-Standard Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cooper-Standard Holdings Inc. is medium due to the availability of alternative products and services in the automotive industry.

Bargaining Power Of Customers

The bargaining power of customers for Cooper-Standard Holdings Inc. is high due to the concentration of major automotive manufacturers and their ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Cooper-Standard Holdings Inc. is low due to the company's large scale of operations and its ability to negotiate with suppliers.

Threat Of New Entrants

The threat of new entrants for Cooper-Standard Holdings Inc. is low due to the high barriers to entry in the automotive industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Cooper-Standard Holdings Inc. is high due to the competitive nature of the automotive industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	108.03%
Debt Cost	10.45%
Equity Weight	-8.03%
Equity Cost	18.30%
WACC	9.82%
Leverage	-1345.97%

11. Quality Control: Cooper-Standard Holdings Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

XPEL

A-Score: 4.6/10

Value: 4.1

Growth: 9.0

Quality: 7.9

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

1-Year Total Return ->

Motorcar Parts of America

A-Score: 4.5/10

Value: 6.5

Growth: 4.8

Quality: 3.7

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

Cooper-Standard

A-Score: 4.0/10

Value: 6.7

Growth: 3.2

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Gentherm

A-Score: 3.9/10

Value: 5.2

Growth: 4.9

Quality: 5.2

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Fox Factory

A-Score: 3.7/10

Value: 8.4

Growth: 5.2

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

Stoneridge

A-Score: 3.2/10

Value: 7.6

Growth: 4.3

Quality: 2.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.82%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.82%

Cooper-Standard Holdings Inc. - US21676P1030

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CPS

1.c. Company Highlights

More Volatile

Lower Growth

Fairly Valued

Earnings Beats

Stable Momentum

Average Quality

Revenues Miss

Earnings Miss

Lower Quality

Average Yield

Strong Momentum

Average Growth

Revenues Beats

2. Cooper-Standard's Q3 2025 Earnings: A Resilient Performance Amidst Challenges

Operational Performance and Strategic Imperatives

Outlook and Guidance

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

North America

Expected Growth: 5%

Europe

Expected Growth: 4%

Asia Pacific

Expected Growth: 6%

South America

Expected Growth: 3%

Corporate Eliminations and Other

Expected Growth: 2%

7. Detailed Products

Sealing Systems

Fuel and Brake Delivery Systems

Fluid Transfer Systems

Anti-Vibration Systems

Nevada Automotive Testing and Development

8. Cooper-Standard Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cooper-Standard Holdings Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.26$

Current Price

30.27$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA