Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $589.30M
• Dividend Yield: 1.07%
• Average Volume (3M): 161.23K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.96
• Revenue Growth: -4.09%
• EPS Growth: -66.97%
• Country: US
• Employees: 2,082
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.71
• Shares Outstanding: 20,010,069
• 10 Day Avg. Volume: 139,433
• 30 Day Avg. Volume: 161,229
• PEG Ratio: -0.35
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $64.00
• Price Target Upside: 117.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Koppers Holdings' overall stock score reflects strong financial performance in revenue growth and cash flow generation, overshadowed by profitability challenges and high leverage. The technical analysis suggests a bearish trend, but the valuation indicates potential undervaluation. Mixed results from the earnings call, including strategic plans for growth, contribute to a balanced outlook.

Positive Factors

Cost Management

Koppers' Railroad and Carbon Materials businesses have shown improved profitability due to effective cost reduction initiatives.

Profitability

Koppers achieved a record adjusted EBITDA of $261.6 million, showcasing strong profitability despite challenges.

Negative Factors

Market Share Loss

Koppers faced market share loss in the PC business, negatively impacting financial results.

Sales Decline

Consolidated sales for Koppers in Q4/24 decreased by 7.1% compared to the previous year, missing financial expectations.

Koppers Holdings Business Overview & Revenue Model

Company Description

Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, 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 PC segment develops, manufactures, and markets copper-based wood preservatives, including 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 various agricultural uses; and supplies fire-retardant chemicals for pressure treatment of wood primarily in commercial construction. The CMC segment manufactures creosote for 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.

How the Company Makes Money

Koppers Holdings generates revenue through its three primary segments. The Railroad and Utility Products and Services segment supplies treated wood products, such as crossties and utility poles, to the railroad and utility industries. The Performance Chemicals segment offers wood treatment chemicals that protect against decay and extend the lifespan of wood products, targeting the residential and commercial construction sectors. The Carbon Materials and Chemicals segment produces carbon pitch, creosote, and other products derived from coal tar, serving the aluminum, steel, and other industrial markets. Key revenue streams include long-term contracts with railroad operators and utility companies, as well as partnerships with industrial manufacturers. Koppers' earnings are influenced by factors such as demand for infrastructure development, regulatory requirements for treated wood products, and global economic conditions affecting industrial production.

Koppers Holdings Financial Statement Overview

Summary

Koppers Holdings shows robust revenue growth and strong cash flow generation capabilities. However, the company faces challenges with declining profitability margins and high leverage. Improving efficiency and managing debt will be crucial to enhance financial stability.

Income Statement

The company has shown consistent revenue growth over the years, albeit with slight fluctuations. Gross profit margins are strong at 100% due to the nature of the reported data, but net profit margins have shown a decline from previous years, indicating rising costs or operational challenges. EBIT and EBITDA margins have also decreased, suggesting potential efficiency issues or increased operational expenses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, reflecting substantial leverage that poses financial risks. While the equity ratio has improved, indicating better asset management, the return on equity has declined, showing a lower efficiency in generating returns from shareholders' equity.

Cash Flow

Operating cash flow remains positive and has improved over the years, indicating strong cash generation capabilities. Free cash flow has shown volatility, but recent growth suggests improved capital management. The operating cash flow to net income ratio is favorable, demonstrating efficient cash conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.09B	2.15B	1.98B	1.68B	1.67B
	Gross Profit
422.60M	366.60M	344.60M	334.10M	360.40M
	EBIT
148.20M	195.20M	137.70M	156.50M	156.70M
	EBITDA
213.00M	252.60M	196.30M	217.80M	213.10M
	Net Income Common Stockholders
52.40M	89.20M	63.40M	85.20M	89.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.90M	66.50M	33.30M	45.50M	38.50M
	Total Assets
1.89B	1.84B	1.71B	1.66B	1.60B
	Total Debt
1.02B	930.70M	904.50M	875.10M	878.40M
	Net Debt
978.00M	864.20M	871.20M	829.60M	839.90M
	Total Liabilities
1.40B	1.33B	1.31B	1.25B	1.25B
	Stockholders Equity
488.70M	498.90M	399.40M	406.60M	341.70M
Cash Flow		Free Cash Flow
42.00M	25.60M	-3.00M	-22.00M	57.30M
	Operating Cash Flow
119.40M	146.10M	102.30M	103.00M	127.10M
	Investing Cash Flow
-173.30M	-116.00M	-114.80M	-89.50M	5.60M
	Financing Cash Flow
35.70M	2.60M	4.80M	-4.00M	-128.70M

Koppers Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOP, the sentiment is Positive. The current price of 29.45 is above the 20-day moving average (MA) of 25.42, above the 50-day MA of 26.95, and below the 200-day MA of 32.82, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 81.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KOP.

Koppers Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCL	71 Outperform	$1.26B	22.78	4.65%	2.82%	-0.16%	47.70%
KOP	65 Neutral	$589.30M	25.72	5.08%	1.07%	-4.09%	-66.97%
ECVT	65 Neutral	$864.07M	17.67	-1.64%	―	2.23%	-115.70%
MTX	64 Neutral	$1.85B	11.37	-1.45%	0.75%	-3.82%	-126.04%
NGVT	54 Neutral	$1.57B	―	-88.14%	―	-17.68%	-214.32%
OEC	51 Neutral	$600.40M	23.40	5.55%	0.79%	-2.31%	-69.16%
Sector *	49 Neutral	$1.97B	-1.18	-21.24%	3.71%	1.29%	-31.16%

Koppers Holdings Corporate Events

Koppers Holdings Reports Q1 2025 Financial Results

On May 8, 2025, Koppers Holdings Inc. held its Annual Meeting of Shareholders, where shareholders approved the Amended and Restated 2020 Long Term Incentive Plan and elected eight directors for one-year terms. Additionally, the company reported its first quarter 2025 financial results, showing a decrease in net sales to $456.5 million from $497.6 million in the prior year quarter. Despite a net loss of $13.9 million, adjusted EBITDA increased to $55.5 million, driven by cost reduction measures and improved performance in the RUPS and CMC segments.

Spark’s Take on KOP Stock

According to Spark, TipRanks’ AI Analyst, KOP is a Neutral.

Koppers Holdings’ overall stock score reflects strong financial performance in revenue growth and cash flow, overshadowed by profitability challenges and high leverage. The technical analysis suggests a bearish trend, but the valuation indicates potential undervaluation. Mixed results from the earnings call, including strategic plans for growth, contribute to a balanced outlook.

To see Spark’s full report on KOP stock, click here.