Added to YB: 2026-04-08
Pitch date: 2026-04-05
CPS [bullish]
Cooper-Standard Holdings Inc.
-3.3%
current return
Author Info
Alex is an MBA from Columbia Business School, Value Investing Program that invests in global stocks. Sign up for the newsletter.
Company Info
Cooper-Standard Holdings Inc., through its subsidiary, manufactures sealing systems and fluid handling systems in the North America, Europe, the Asia Pacific, and the South America.
Market Cap
$505.5M
Pitch Price
$28.51
Price Target
N/A
Dividend
N/A
EV/EBITDA
6.21
P/E
-122.91
EV/Sales
0.55
Sector
Automobile Components
Category
turnaround
Cooper-Standard Holdings (NYSE: CPS)
CPS: Tier 1 auto supplier (16% sealing share, 14% fluid). Margin recovery locked: 2026 100% booked at +500bp hurdle rates vs 2022, 2027 95%, 2028 85%. EBITDA $167M (2023)→$181M (2024)→$210M (2025)→$260-300M guide 2026 (10%+ margin), targeting 13% by 2030. China pivot: BYD 0%→25% brake share, COEM replacing JV OEMs (still 60% JV today). Hybrid/BEV content +50-80% vs ICE, 74% of 2025 awards. Refi done: $1.1B 9.25% 2031 notes replaced 13.5%/10.6% 2027 debt, saves $13M/yr. Leverage 4.4x→2.9x (2026E)→2.3x (2027E), targeting 2x by 2028. Trading 3.7x 2028E EBITDA. Risks: NA volume miss on 15M SAAR assumption, $25M FX headwind not in guide, COEM growth stalls. Catalysts: Q1 2026 ER (May), BYD #1 sealing customer visible H2 2026, new sell-side coverage.
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