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

7.0%

KOP

1.3%

US Chemicals

1.8%

US Market


1 Year Return

-0.3%

KOP

-5.3%

US Chemicals

7.3%

US Market

Return vs Industry: KOP exceeded the US Chemicals industry which returned -5.3% over the past year.

Return vs Market: KOP underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

KOPIndustryMarket
7 Day7.0%1.3%1.8%
30 Day-1.2%-1.5%-0.7%
90 Day12.8%-1.5%0.06%
1 Year-0.3%-0.3%8.5%-5.3%9.7%7.3%
3 Year-12.1%-12.1%40.8%15.1%46.3%36.9%
5 Year-16.3%-17.0%43.7%12.7%64.5%46.5%

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?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: KOP ($29.76) is trading below our estimate of fair value ($35.51)

Significantly Undervalued: KOP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KOP is poor value based on its PE Ratio (19.7x) compared to the Chemicals industry average (18.9x).

PE vs Market: KOP is poor value based on its PE Ratio (19.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: KOP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KOP is overvalued based on its PB Ratio (6.7x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Koppers Holdings forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KOP's forecast earnings growth (26.7% per year) is above the savings rate (2.7%).

Earnings vs Market: KOP's earnings (26.7% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: KOP's revenue (3.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: KOP's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

40.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KOP's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: KOP's earnings growth over the past year (38.1%) is below its 5-year average (40.7% per year).

Earnings vs Industry: KOP earnings growth over the past year (38.1%) exceeded the Chemicals industry -2.4%.


Return on Equity

High ROE: Whilst KOP's Return on Equity (30.39%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: KOP's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: KOP's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Koppers Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KOP's short term assets ($557.4M) exceeds its short term liabilities ($277.0M)

Long Term Liabilities: KOP's short term assets (557.4M) do not cover its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: KOP's debt to equity ratio (977.9%) is considered high

Reducing Debt: KOP's debt to equity ratio has increased from 193.2% to 977.9% over the past 5 years.

Debt Coverage: KOP's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: KOP's interest payments on its debt are not well covered by EBIT (2x 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 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

  • Explore strong dividend paying companies in the Materials industry.

Management

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

5.0yrs

Average management tenure


CEO

Leroy Ball (50yo)

4.8yrs

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 ($USD4.04M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: KOP's management team is considered experienced (5 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Board: KOP's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: KOP insiders have bought more shares than they have sold 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: 5.2yrs
    • Compensation: US$1.16m
  • Steven Lacy (63yo)

    Chief Administrative Officer

    • Tenure: 14.9yrs
    • Compensation: US$1.28m
  • Leroy Ball (50yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$4.04m
  • Mark McCormack (59yo)

    Vice President of Australian Operations - Koppers Inc.

    • Tenure: 12.9yrs
    • Compensation: US$1.03m
  • Brad Pearce (52yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Quynh McGuire

    Director of Investor Relations - Koppers Inc

    • Tenure: 4.8yrs
  • Jim Sullivan (55yo)

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

    • Tenure: 1.2yrs
    • Compensation: US$1.30m

Board Members

  • Al Neupaver (68yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$179.01k
  • Leroy Ball (50yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$4.04m
  • Sonja Wilkerson (58yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$82.40k
  • Steve Tritch (69yo)

    Independent Chairman of the Board

    • Tenure: 1yrs
    • Compensation: US$196.19k
  • X. Feng (60yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$179.01k
  • David Motley (60yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$82.40k
  • Traci Jensen (52yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$82.40k
  • Louis Testoni (70yo)

    Independent Director

    • Tenure: 6.4yrs
    • 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$615.527m
  • 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 Analysis2019/10/18 23:54
End of Day Share Price2019/10/18 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.