Koppers Holdings
Market Cap
US$415.7m
Last Updated
2020/02/28 01:26 UTC
Data Sources
Company Financials +
Executive Summary
Koppers Holdings Inc., through its subsidiaries, provides treated wood products, wood treatment chemicals, and carbon compounds in the United States and internationally.
Rewards
Risk Analysis
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
| KOP | Industry | Market | |
|---|---|---|---|
| 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 Year | 7.7%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
3 days ago | Simply Wall St
Here's Why I Think Koppers Holdings (NYSE:KOP) Is An Interesting Stock2 weeks ago | Simply Wall St
Is There Now An Opportunity In Koppers Holdings Inc. (NYSE:KOP)?3 weeks ago | Simply Wall St
Koppers Holdings (NYSE:KOP) Use Of Debt Could Be Considered RiskyValuation
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.1yrs | US$4.04m | 0.87% $3.6m | |
| CFO & Treasurer | 5.5yrs | US$1.16m | 0.25% $1.0m | |
| Executive VP & COO | 0.08yrs | US$1.30m | 0.20% $814.5k | |
| Chief Administrative Officer & General Counsel | 15.3yrs | US$1.28m | 0.17% $692.0k | |
| Chief Accounting Officer | 0yrs | no data | 0.080% $330.9k | |
| Vice President of Australian Operations - Koppers Inc. | 13.3yrs | US$1.03m | 0.41% $1.7m | |
| Director of Investor Relations - Koppers Inc | 5.1yrs | no data | no data | |
| Deputy General Counsel & Assistant Secretary | 1.1yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.1yrs | US$4.04m | 0.87% $3.6m | |
| Independent Director | 10.5yrs | US$179.01k | 0.26% $1.1m | |
| Independent Director | 1.4yrs | US$82.40k | no data | |
| Independent Chairman of the Board | 1.3yrs | US$196.19k | 0.14% $598.1k | |
| Independent Director | 10.8yrs | US$179.01k | 0.11% $473.4k | |
| Independent Director | 1.4yrs | US$82.40k | no data | |
| Independent Director | 1.4yrs | US$82.40k | no data | |
| Independent Director | 6.8yrs | US$185.01k | 0.12% $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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KO9 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 2006 |
| KOP | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/28 01:26 |
| End of Day Share Price | 2020/02/27 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.