Is COOP a high-quality business?

AlphaMadera's AlphaQuality grade scores Mr. Cooper Group Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how COOP compares to a Buffett-style quality bar.

What is Mr. Cooper Group Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to COOP based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes COOP a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

COOP - Mr. Cooper Group Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $118.43 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Banks, Insurers & Asset Managers

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for banks, insurers & asset managers businesses. Purely quantitative — no stock price or analyst input.

⚠ Negative tangible book value combined with negative free cash flow — balance sheet is impaired and operating cash generation cannot rebuild it.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 25%

B 74.4

Scored using ROA (NIM proxy) — financial-archetype substitution.

5yr Avg ROA 4.1% 100/100
Operating Margin Trend -1.27 pp/yr 15/100

Capital Efficiency

Weight: 20%

A+ 93.3

Scored using ROTCE — financial-archetype substitution.

5yr Avg ROTCE 16.0% 90/100
5yr Share-Count CAGR -8.7% 100/100

Growth Quality

Weight: 10%

A+ 100.0

Scored using BVPS — financial-archetype substitution.

5yr BVPS CAGR 31.0% 100/100
5yr EPS CAGR 33.6% 100/100
Positive-EPS Years (5) 5/5 100/100

Cash Generation

Weight: 5%

A+ 96.6

Scored using OCF/NI — banks have no FCF concept.

5yr OCF/NI 1.54x 97/100

Balance Sheet

Weight: 30%

A+ 100.0

Scored using Equity/Assets — financial-archetype substitution.

Equity / Assets 25.4% 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100

Stability

Weight: 10%

D 35.0

EPS Volatility (σ/μ) 0.81 7/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

Not enough curated-guru data to call a flow.

Cooperman sold -100%
Soros sold -100%
Loeb sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROA, Operating Margin Trend
Capital Efficiency (20%) — 5yr Avg ROTCE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr BVPS CAGR, 5yr EPS CAGR, Positive-EPS Years (5)
Cash Generation (5%) — 5yr OCF/NI
Balance Sheet (30%) — Equity / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.