Cooper Standard | The $600M Cut That Could Send This Auto Supplier to $150+
Cooper Standard stripped out half a billion in costs. Now even a normal cycle peak could mean a 5x return. Here’s why I’m betting big.
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The Turnaround Investment Newsletter
This article is a comprehensive thesis covering one of the stock in my portfolio, Cooper Standard ($CPS) and at the very bottom full portfolio details.
By the end of this, you’ll know:
✅What they do.
✅What will drive increased vehicle sales.
✅How management has made the business much more efficient.
✅How they will grow separate from volume increases.
✅The risks.
✅Why I still see $150+ per share.
I found out about this stock from Thomas J. Hayes.
Before we jump in I always share how my portfolio is performing.
From the start of 2024 to month end August 2025, my portfolio is up 299.66%.
This year alone, I’m sitting on +115.77% YTD through August.
All earned from setups like this. Mispriced, unloved, and no one paying attention.
I want to be clear, these are not the returns I expect, I hope for them but cannot expect them. My goal is to AVERAGE 30% per year. That means I can almost guarantee lower returns going forward and will also almost certainly have years of negative returns.
With that said back to the article.
What Cooper Standard Does
Cooper Standard is a Tier 1 automotive supplier. That means they sell finished, fully engineered, ready-to-install systems directly to automakers. Their 3 largest customers are Ford, GM and Stellantis combined making up 56% of their revenue.
Key offerings:
Sealing systems for doors, trunks, windows, and sunroofs.
Fluid handling systems for fuel, brake, coolant, and emissions.
Fuel & brake delivery tubing built for pressure and heat.
Cooper Standard has massive scale being the #1 sealing systems producer in the world and #2 in fluid handling systems.
Its not surprising they are such a big player when you look at their scale. Roughly 22,000 employees across 124 facilities in 20 countries, with headquarters in Michigan and a heavy footprint in North America and Europe. Asia-Pacific is also becoming a strategic focus area, especially as EV platforms ramp globally.
Even though they are an auto components manufacturer they have more tech than most realize. They invested in AI-assisted compound development and virtual prototyping to speed up product cycles and reduce failure risk.
Some parts can now be tested entirely in simulation before a single prototype is built.
The company’s innovation pipeline is impressive. Thermoplastic seals that reduce weight and emissions, integrated valve-pump units for EVs, and compact hubs that simplify complex cooling systems.
These aren’t sexy parts, but they are vital and Cooper has a growing list of awards to prove it.
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How Blowing Up My Brokerage Account Led to DeepValue Capital - Who I am and what DeepValue Capital Offers.
My Updated Step-by-Step Guide to Outperformance - My investing system broken down in step by step detail for you.
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The Thesis
When I first looked at Cooper Standard the auto cycle was at a deep cyclical trough and things looked bleak. But digging below the surface, I realized the market was missing a massive opportunity.
