Investment Thesis
Cooper-Standard is technically insolvent with negative stockholders' equity of -$115.3M and is burning cash from core operations (-$69.2M OCF) despite massive revenue growth, indicating fundamental business model failure. The company faces existential risk without substantial operational turnaround or capital restructuring.
Strengths
- Significant revenue recovery (+2490% YoY from distressed base)
- Improving net loss trajectory (+3.5% YoY)
- Adequate short-term liquidity (1.40x current ratio, $118.5M cash)
Risks
- Negative stockholders' equity (-$115.3M) - company is technically insolvent
- Negative operating cash flow (-$69.2M) - core business cannot sustain itself
- Negative free cash flow (-$93.2M) - no financial flexibility for debt service
- Unsustainably low gross margins (12%) indicating severe competitive or cost pressures
- High debt burden ($1.1B) against insolvent equity base
- Unprofitable operations despite revenue surge signals structural operational weakness
Key Metrics to Watch
- Operating cash flow trajectory toward positive territory
- Gross margin expansion above 12% threshold
- Path to positive net income and positive stockholders' equity
- Debt refinancing ability and covenant compliance
- Cash burn rate and runway before capital infusion needed
Financial Metrics
Revenue
686.4M
Net Income
-33.3M
EPS (Diluted)
$-1.85
Free Cash Flow
-93.2M
Total Assets
1.9B
Cash
118.5M
Profitability Ratios
Gross Margin
12.0%
Operating Margin
3.5%
Net Margin
-4.9%
ROE
N/A
ROA
-1.8%
FCF Margin
-13.6%
Balance Sheet & Liquidity
Current Ratio
1.40x
Quick Ratio
1.11x
Debt/Equity
N/A
Debt/Assets
106.7%
Interest Coverage
N/A
Long-term Debt
1.1B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T09:45:54.995718 |
Data as of: 2026-03-31 |
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