Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $604.08M
• Dividend Yield: 0.98%
• Average Volume (3M): 136.69K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.04
• Revenue Growth: -6.20%
• EPS Growth: -80.00%
• Country: US
• Employees: 2,082
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 1.48
• Shares Outstanding: 19,715,527
• 10 Day Avg. Volume: 175,260
• 30 Day Avg. Volume: 136,689
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.78
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $46.00
• Price Target Upside: 50.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $33.00 ▲(7.70% Upside)

Koppers Holdings' overall score reflects a mixed financial performance with significant internal improvements overshadowed by external challenges. The company's strategic initiatives and corporate events provide a positive outlook, but high leverage and valuation concerns remain key risks.

Positive Factors

Cost Reduction and Profitability

Cost reduction efforts, including a 14% reduction in SG&A expenses and a decrease in headcount, enabled the company to achieve an adjusted EBITDA margin of over 15% for the first time in eight years.

Operating Leverage

Operating leverage was evident in Q2, with all three business segments showing upside potential if interest rates retreat and the economy cooperates.

Strategic Transformation

KOP has initiated a strategic transformation called Catalyst, targeted at improving profitability to drive long-term shareholder value.

Negative Factors

Market Share and Volume Decline

PC net sales decreased 14.8% due primarily to a 15% volume decrease mostly in the Americas resulting from a shift in U.S. market share.

Sales Decline

Sales were down by 10.4% in Q2, reflecting challenges in the operating environment.

Segment Challenges

The Performance Chemicals segment is challenged in 2025 with market share losses and economic uncertainty as headwinds.

Koppers Holdings Business Overview & Revenue Model

Company Description

Koppers Holdings Inc. (KOP) is a global leader in providing treated wood products, chemicals, and carbon compounds, serving various industries including railroad, utility, and construction. The company operates in three primary segments: Railroad and Utility Products, which offers treated wood products for railway and utility infrastructure; Performance Chemicals, which provides specialty chemicals for wood preservation and other applications; and Carbon Materials and Chemicals, which produces carbon-related products for various industrial applications. Koppers is committed to sustainability and innovation, focusing on developing eco-friendly solutions and enhancing operational efficiency.

How the Company Makes Money

Koppers Holdings generates revenue through several key streams, primarily from the sale of treated wood products, specialty chemicals, and carbon materials. The Railroad and Utility Products segment contributes significantly to revenue by supplying treated wood ties, utility poles, and related products to customers in the transportation and utility sectors. The Performance Chemicals segment earns revenue through the production and sale of wood preservatives and other specialty chemicals, which are used in various applications, including construction and manufacturing. The Carbon Materials and Chemicals segment generates income through the production of carbon black and other carbon-based products, which are utilized in tires, coatings, and other industrial applications. Strategic partnerships with key players in the rail and utility industries, along with a focus on expanding its market presence in emerging economies, further contribute to Koppers' earnings.

Koppers Holdings Financial Statement Overview

Summary

Koppers Holdings faces challenges with declining revenues and high leverage. While it maintains operational efficiency, its profitability and cash flow generation are constrained. The high debt levels present a risk, but the company shows resilience with moderate cash flow management.

Income Statement

Koppers Holdings shows a mixed financial performance in recent periods. The gross profit margin for TTM (Trailing-Twelve-Months) is 20.11%, with a net profit margin of 1.24%, indicating low profitability. Revenue has declined compared to the previous year, showing a negative growth rate of -1.97%. EBIT and EBITDA margins stand at 6.79% and 8.77% respectively, reflecting moderate operational efficiency amidst challenging market conditions.

Balance Sheet

The company's balance sheet reflects a high debt-to-equity ratio of 2.15, which poses a leverage risk. The return on equity (ROE) for TTM is at 5.12%, signifying modest returns to shareholders. The equity ratio is 26.34%, highlighting a relatively low proportion of equity financing, which could affect financial stability.

Cash Flow

Koppers Holdings' cash flow performance is under pressure, with a free cash flow growth rate of 3.81% for TTM, indicating constrained cash generation. The operating cash flow to net income ratio is 4.27, showing strong cash conversion relative to net income. However, the free cash flow to net income ratio is 1.71, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.99B	2.09B	2.15B	1.98B	1.68B	1.67B
Gross Profit	406.20M	422.60M	424.50M	344.60M	334.10M	360.40M
EBITDA	163.20M	213.00M	252.60M	196.30M	217.80M	213.10M
Net Income	15.10M	52.40M	89.20M	63.40M	85.20M	122.00M
Balance Sheet
Total Assets	1.93B	1.89B	1.84B	1.71B	1.66B	1.60B
Cash, Cash Equivalents and Short-Term Investments	38.40M	43.90M	66.50M	33.30M	45.50M	38.50M
Total Debt	1.07B	1.02B	930.70M	904.50M	875.10M	878.40M
Total Liabilities	1.40B	1.40B	1.33B	1.31B	1.25B	1.25B
Stockholders Equity	526.80M	488.70M	498.90M	399.40M	406.60M	341.70M
Cash Flow
Free Cash Flow	71.90M	42.00M	25.60M	-3.00M	-22.00M	57.30M
Operating Cash Flow	132.30M	119.40M	146.10M	102.30M	103.00M	126.40M
Investing Cash Flow	-71.00M	-173.30M	-116.00M	-114.80M	-89.50M	5.60M
Financing Cash Flow	-72.60M	35.70M	2.60M	4.80M	-4.00M	-128.70M

Koppers Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.64
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KOP, the sentiment is Negative. The current price of 30.64 is below the 20-day moving average (MA) of 32.22, below the 50-day MA of 32.49, and below the 200-day MA of 31.21, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 44.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KOP.

Koppers Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCL	65 Neutral	$1.14B	19.89	4.77%	3.04%	2.64%	66.43%
OEC	65 Neutral	$599.68M	39.66	3.11%	0.78%	-3.79%	-79.76%
MTX	63 Neutral	$1.94B	1,360.13	0.13%	0.70%	-3.93%	-97.39%
KOP	61 Neutral	$604.08M	43.00	2.92%	0.98%	-6.20%	-80.00%
ECVT	60 Neutral	$1.00B	17.67	-1.97%	―	4.93%	-124.60%
NGVT	55 Neutral	$1.96B	―	-106.83%	―	-14.45%	49.92%
Sector *	44 Neutral	C$925.44M	-8.84	-0.23%	2.69%	24.64%	-41.43%

Koppers Holdings Corporate Events

Koppers Holdings Amends Credit Agreement for Flexibility

On June 17, 2025, Koppers Inc. amended its Credit Agreement, extending the maturity date of its $800 million revolving credit facility to June 17, 2030, or 91 days before the maturity of its secured term loan facility. The amendment also adjusts the financial covenant and interest rate margins, enhancing Koppers’ financial flexibility and lowering borrowing costs, reflecting confidence from banking partners.

The most recent analyst rating on (KOP) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Koppers Holdings stock, see the KOP Stock Forecast page.

Koppers Holdings Appoints James Sullivan as President

On May 29, 2025, Koppers Holdings Inc. announced the appointment of James A. Sullivan as President and Chief Transformation Officer, effective June 1, 2025. This new role is part of the company’s Catalyst Initiative, aimed at driving enterprise-wide transformation and improving performance. Sullivan, who has been with Koppers since 2013, will lead the Transformation Office to implement strategic changes and enhance the company’s margin and cash flow profile.

The most recent analyst rating on (KOP) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Koppers Holdings stock, see the KOP Stock Forecast page.