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

Fundamentals

Moderate growth potential and slightly overvalued.


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


Market Performance


7 Day Return

-1.1%

KOP

0.2%

US Chemicals

-0.5%

US Market


1 Year Return

-8.6%

KOP

-13.4%

US Chemicals

0.9%

US Market

KOP outperformed the Chemicals industry which returned -13.6% over the past year.

KOP underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

KOPIndustryMarket
7 Day-1.1%0.2%-0.5%
30 Day14.8%7.1%4.8%
90 Day12.2%-0.1%2.3%
1 Year-8.6%-8.6%0.04%-13.4%3.1%0.9%
3 Year-4.3%-4.3%43.0%16.7%45.5%36.0%
5 Year-12.1%-12.8%38.9%8.4%62.5%44.7%

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

2 weeks ago | Simply Wall St

Does The Koppers Holdings Inc. (NYSE:KOP) Share Price Fall With The Market?

Valuation

Is Koppers Holdings undervalued based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Koppers Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Koppers Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Koppers Holdings is good value based on earnings compared to the US Chemicals industry average.

Koppers Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Koppers Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Koppers Holdings is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Koppers Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Koppers Holdings's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

Koppers Holdings's earnings are expected to grow significantly at over 20% yearly.

Koppers Holdings's revenue growth is positive but not above the United States of America market average.

Koppers Holdings's earnings growth is expected to exceed the United States of America market average.

Koppers Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Koppers Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Koppers Holdings performed over the past 5 years?

40.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Koppers Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Koppers Holdings's 1-year earnings growth is less than its 5-year average (38.1% vs 40.7%)

Koppers Holdings's earnings growth has exceeded the US Chemicals industry average in the past year (38.1% vs -2.4%).


Return on Equity

Whilst Koppers Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Koppers Holdings used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Koppers Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Koppers Holdings's financial position?


Financial Position Analysis

Koppers Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Koppers Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Koppers Holdings's level of debt (977.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (193.2% vs 977.9% today).

Debt is not well covered by operating cash flow (7.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Koppers Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Koppers Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Koppers Holdings has not reported any payouts.

Unable to verify if Koppers Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Koppers Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Koppers Holdings's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Leroy Ball (50yo)

4.7yrs

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

Leroy's remuneration is higher than average for companies of similar size in United States of America.

Leroy's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

57yo

Average Age

The tenure for the Koppers Holdings management team is about average.


Board Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

The average tenure for the Koppers Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Koppers Holdings individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$65,73906 Sep 19
X. Feng
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,442
Max PriceUS$26.92
BuyUS$347,07314 Aug 19
R. Johnson
EntityIndividual
Shares12,000
Max PriceUS$28.98
SellUS$27,75004 Jun 19
Bradley Pearce
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares1,000
Max PriceUS$27.75
BuyUS$45,29415 May 19
R. Johnson
EntityIndividual
Shares1,523
Max PriceUS$29.74
BuyUS$251,45314 May 19
R. Johnson
EntityIndividual
Shares8,577
Max PriceUS$29.32
BuyUS$287,96710 May 19
R. Johnson
EntityIndividual
Shares9,900
Max PriceUS$29.25
BuyUS$509,96415 Mar 19
R. Johnson
EntityIndividual
Shares20,000
Max PriceUS$25.50
BuyUS$171,00019 Dec 18
Michael Zugay
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares10,000
Max PriceUS$17.10
BuyUS$867,50019 Dec 18
R. Johnson
EntityIndividual
Shares50,000
Max PriceUS$17.35
BuyUS$82,15017 Dec 18
James Sullivan
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Railroad Products and Services & Global Carbon Materials and Chemicals
Shares5,000
Max PriceUS$16.43
BuyUS$102,20014 Dec 18
Leroy Ball
EntityIndividual
Role
Chief Executive Officer
President
Shares6,000
Max PriceUS$17.24
BuyUS$18,50004 Dec 18
Joseph Dowd
EntityIndividual
Shares1,000
Max PriceUS$18.50
BuyUS$75,60003 Dec 18
Leroy Ball
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$18.90
BuyUS$103,75019 Nov 18
Albert Neupaver
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$20.75
BuyUS$325,35014 Nov 18
R. Johnson
EntityIndividual
Shares15,000
Max PriceUS$21.69
BuyUS$440,19013 Nov 18
Leroy Ball
EntityIndividual
Role
Chief Executive Officer
President
Shares22,000
Max PriceUS$20.44
BuyUS$1,008,00013 Nov 18
R. Johnson
EntityIndividual
Shares50,000
Max PriceUS$20.16

Ownership Breakdown


Management Team

  • Mike Zugay (67yo)

    CFO & Treasurer

    • Tenure: 5.1yrs
    • Compensation: US$1.16m
  • Steven Lacy (63yo)

    Chief Administrative Officer

    • Tenure: 14.8yrs
    • Compensation: US$1.28m
  • Leroy Ball (50yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$4.04m
  • Mark McCormack (59yo)

    Vice President of Australian Operations - Koppers Inc.

    • Tenure: 12.8yrs
    • Compensation: US$1.03m
  • Brad Pearce (52yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Quynh McGuire

    Director of Investor Relations - Koppers Inc

    • Tenure: 4.7yrs
  • Jim Sullivan (55yo)

    Senior Vice President of Railroad Products and Services & Global Carbon Materials and Chemicals

    • Tenure: 1.1yrs
    • Compensation: US$1.30m

Board Members

  • Al Neupaver (68yo)

    Independent Director

    • Tenure: 10.1yrs
    • Compensation: US$179.01k
  • Leroy Ball (50yo)

    President

    • Tenure: 4.7yrs
    • Compensation: US$4.04m
  • Sonja Wilkerson (58yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$82.40k
  • Steve Tritch (69yo)

    Chairman of the Board

    • Tenure: 0.9yrs
    • Compensation: US$196.19k
  • X. Feng (60yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$179.01k
  • David Motley (60yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$82.40k
  • Traci Jensen (52yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$82.40k
  • Louis Testoni (70yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$185.01k

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$613.251m
  • Shares outstanding: 20.68m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 23:55
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
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.