NYSE:KOP

Stock Analysis Report

Executive Summary

Koppers Holdings Inc., through its subsidiaries, provides treated wood products, wood treatment chemicals, and carbon compounds in the United States and internationally.


Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Koppers Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KOP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-30.4%

KOP

-12.4%

US Chemicals

-10.6%

US Market


1 Year Return

-23.6%

KOP

-16.4%

US Chemicals

5.2%

US Market

Return vs Industry: KOP exceeded the US Chemicals industry which returned -13% over the past year.

Return vs Market: KOP underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

KOPIndustryMarket
7 Day-30.4%-12.4%-10.6%
30 Day-39.0%-10.9%-8.5%
90 Day-46.1%-12.2%-4.6%
1 Year-23.6%-23.6%-4.7%-16.4%7.4%5.2%
3 Year-54.7%-54.7%12.3%-9.1%31.7%23.2%
5 Year7.7%7.7%23.7%-2.8%56.4%39.3%

Price Volatility Vs. Market

How volatile is Koppers Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Koppers Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KOP ($23.57) is trading below our estimate of fair value ($54.7)

Significantly Below Fair Value: KOP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KOP is good value based on its PE Ratio (11.2x) compared to the Chemicals industry average (20.7x).

PE vs Market: KOP is good value based on its PE Ratio (11.2x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: KOP is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: KOP is overvalued based on its PB Ratio (4.9x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

How is Koppers Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOP's forecast earnings growth (26.1% per year) is above the savings rate (1.7%).

Earnings vs Market: KOP's earnings (26.1% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KOP's revenue (3.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KOP's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KOP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Koppers Holdings performed over the past 5 years?

49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KOP has high quality earnings.

Growing Profit Margin: KOP's current net profit margins (2.4%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: KOP has become profitable over the past 5 years, growing earnings by 49.1% per year.

Accelerating Growth: KOP's earnings growth over the past year (322.3%) exceeds its 5-year average (49.1% per year).

Earnings vs Industry: KOP earnings growth over the past year (322.3%) exceeded the Chemicals industry -15.9%.


Return on Equity

High ROE: Whilst KOP's Return on Equity (40.09%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Koppers Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KOP's short term assets ($517.6M) exceed its short term liabilities ($264.1M).

Long Term Liabilities: KOP's short term assets ($517.6M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: KOP's debt to equity ratio (856.3%) is considered high.

Reducing Debt: KOP's debt to equity ratio has increased from 528.5% to 856.3% over the past 5 years.

Debt Coverage: KOP's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: KOP's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: KOP has a high level of physical assets or inventory.

Debt Coverage by Assets: KOP's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Koppers Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%4.1%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KOP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KOP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KOP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KOP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KOP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KOP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.1yrs

Average management tenure


CEO

Leroy Ball (50yo)

5.1yrs

Tenure

US$4,044,045

Compensation

Mr. Leroy M. Ball, Jr., has been the Chief Executive Officer and President of Koppers Holdings Inc. and Koppers Inc. since January 01, 2015. Mr. Ball is a Director of Allegheny Technologies Incorporated si ...


CEO Compensation Analysis

Compensation vs Market: Leroy's total compensation ($USD4.04M) is above average for companies of similar size in the US market ($USD1.75M).

Compensation vs Earnings: Leroy's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Leroy Ball
President5.1yrsUS$4.04m0.87% $3.6m
Michael Zugay
CFO & Treasurer5.5yrsUS$1.16m0.25% $1.0m
James Sullivan
Executive VP & COO0.08yrsUS$1.30m0.20% $814.5k
Steven Lacy
Chief Administrative Officer & General Counsel15.3yrsUS$1.28m0.17% $692.0k
Bradley Pearce
Chief Accounting Officer0yrsno data0.080% $330.9k
Mark McCormack
Vice President of Australian Operations - Koppers Inc.13.3yrsUS$1.03m0.41% $1.7m
Quynh McGuire
Director of Investor Relations - Koppers Inc5.1yrsno datano data
Stephanie Apostolou
Deputy General Counsel & Assistant Secretary1.1yrsno datano data

5.1yrs

Average Tenure

57yo

Average Age

Experienced Management: KOP's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leroy Ball
President5.1yrsUS$4.04m0.87% $3.6m
Albert Neupaver
Independent Director10.5yrsUS$179.01k0.26% $1.1m
Sonja Wilkerson
Independent Director1.4yrsUS$82.40kno data
Stephen Tritch
Independent Chairman of the Board1.3yrsUS$196.19k0.14% $598.1k
X. Feng
Independent Director10.8yrsUS$179.01k0.11% $473.4k
David Motley
Independent Director1.4yrsUS$82.40kno data
Traci Jensen
Independent Director1.4yrsUS$82.40kno data
Louis Testoni
Independent Director6.8yrsUS$185.01k0.12% $487.5k

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: KOP's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Koppers Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Koppers Holdings Inc.
  • Ticker: KOP
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$415.687m
  • Shares outstanding: 20.81m
  • Website: https://www.koppers.com

Number of Employees


Location

  • Koppers Holdings Inc.
  • 436 Seventh Avenue
  • Pittsburgh
  • Pennsylvania
  • 15219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KO9DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2006
KOPNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2006

Biography

Koppers Holdings Inc., through its subsidiaries, provides treated wood products, wood treatment chemicals, and carbon compounds in the United States and internationally. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RUPS segment procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings. It also provides rail joint bars to join rails together for railroads; transmission and distribution poles for electric and telephone utilities; and pilings. This segment also provides railroad services, such as engineering, design, repair, and inspection services for railroad bridges. The Performance Chemicals segment develops, manufactures, and markets water-based wood preservatives and wood specialty additives, including micronized copper quaternary and micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, and chromated copper arsenate for decking, fencing, utility poles, construction lumber and timbers, and vineyard stakes. The CMC segment manufactures creosote for use in the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a feedstock in the production of phthalic anhydride and as a surfactant in the production of concrete; phthalic anhydride for the production of plasticizers, polyester resins, and alkyd paints; and carbon black feedstock for use in the production of carbon black. The company serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:26
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.