Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $528.60M
• Dividend Yield: 1.19%
• Average Volume (3M): 156.62K
• Price to Earnings (P/E): 33.6
• Beta (1Y): 1.10
• Revenue Growth: -9.62%
• EPS Growth: -76.62%
• Country: US
• Employees: 2,082
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.21
• Shares Outstanding: 19,613,926
• 10 Day Avg. Volume: 171,756
• 30 Day Avg. Volume: 156,624
• PEG Ratio: -0.31
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 15.94
• Enterprise Value/Market Cap: 2.94
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: 6.48
• 1Y Price Target: $55.00
• Price Target Upside: 104.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.09
• Revenue Forecast (FY): $1.91B

• Rating: 58 Neutral
• Price Target: $29.00 ▲(7.61% Upside)

Koppers Holdings' overall stock score is primarily influenced by its financial performance, which shows resilience in cash management despite declining revenue and profitability. Technical analysis indicates a bearish trend, and valuation metrics suggest potential overvaluation. The earnings call provided mixed signals with strong cost control but declining sales and EPS. The recent corporate event of expanding the board adds a positive note.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Koppers to invest in growth opportunities and reduce debt, supporting long-term sustainability.

Strategic Business Simplification

Simplifying the business portfolio can lead to improved margins and operational focus, positioning Koppers for more efficient growth and profitability.

Board Expansion

Adding a director with industry expertise supports strategic growth and innovation, enhancing governance and long-term strategic direction.

Negative Factors

Declining Revenue

Declining revenue indicates potential market share loss and challenges in demand, which could impact long-term growth and profitability.

High Debt Levels

High leverage can constrain financial flexibility, increasing risk during economic downturns and potentially impacting long-term financial health.

Performance Chemicals Segment Challenges

Challenges in the Performance Chemicals segment suggest competitive pressures and cost issues, which could hinder segment recovery and growth.

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 primarily through the sale of treated wood products and chemical solutions. Key revenue streams include the sale of railroad ties, utility poles, and various wood preservation chemicals. The Railroad and Utility Products segment constitutes a significant portion of the company's earnings, driven by consistent demand from the transportation and utility sectors. Additionally, Koppers benefits from partnerships with major railroads and utility companies, which provide a stable customer base. The Performance Chemicals segment also contributes to revenue through the sale of specialty chemicals, which are used in various applications across different industries. Overall, Koppers' focus on innovation, sustainability, and strategic partnerships plays a crucial role in enhancing its revenue-generating capabilities.

Koppers Holdings Financial Statement Overview

Summary

Koppers Holdings faces challenges with declining revenue and profitability margins, but shows strength in cash flow generation. The high debt level poses a risk, though it has been reduced recently. Overall, the company demonstrates resilience in cash management despite pressures on revenue and profitability.

Income Statement

Koppers Holdings has experienced a decline in revenue growth, with a negative growth rate of -3.46% TTM. Gross profit margin has decreased to 15.78% TTM from 20.20% in 2024, indicating pressure on cost management. Net profit margin also declined to 0.84% TTM, reflecting reduced profitability. However, the company maintains a positive EBIT and EBITDA margin, although both have decreased compared to previous years.

Balance Sheet

The company has a high debt-to-equity ratio of 1.88 TTM, indicating significant leverage, though it has improved from 2.09 in 2024. Return on equity has decreased to 3.13% TTM, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Koppers Holdings shows a strong free cash flow growth rate of 32.27% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.59, suggesting adequate cash flow relative to net income. The free cash flow to net income ratio of 0.63 TTM reflects a healthy conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.92B	2.09B	2.15B	1.98B	1.68B	1.67B
Gross Profit	420.60M	422.60M	424.50M	344.60M	334.10M	360.40M
EBITDA	240.03M	243.30M	250.40M	191.30M	185.20M	217.30M
Net Income	16.10M	52.40M	89.20M	63.40M	85.20M	122.00M
Balance Sheet
Total Assets	1.89B	1.89B	1.84B	1.71B	1.66B	1.60B
Cash, Cash Equivalents and Short-Term Investments	37.90M	43.90M	66.50M	33.30M	45.50M	38.50M
Total Debt	1.03B	1.02B	930.70M	904.50M	875.10M	878.40M
Total Liabilities	1.35B	1.40B	1.33B	1.31B	1.25B	1.25B
Stockholders Equity	545.60M	488.70M	498.90M	399.40M	406.60M	341.70M
Cash Flow
Free Cash Flow	95.10M	42.00M	25.60M	-3.00M	-22.00M	58.00M
Operating Cash Flow	152.10M	119.40M	146.10M	102.30M	103.00M	127.80M
Investing Cash Flow	-57.40M	-173.30M	-116.00M	-114.80M	-89.50M	5.60M
Financing Cash Flow	-100.00M	35.70M	2.60M	4.80M	-4.00M	-128.70M

Koppers Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.95 is below the 20-day moving average (MA) of 28.30, below the 50-day MA of 28.23, and below the 200-day MA of 29.04, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.70 is Positive, 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
HDSN	72 Outperform	$301.02M	13.95	8.75%	―	-4.24%	-23.16%
SSL	69 Neutral	$4.03B	11.13	4.56%	―	-6.73%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	58 Neutral	$528.60M	33.59	2.99%	1.19%	-9.62%	-76.62%
NTIC	50 Neutral	$71.77M	4,205.56	0.02%	1.33%	-0.97%	-99.67%
OEC	48 Neutral	$289.17M	-8.87	-7.24%	1.61%	-4.31%	-206.57%
KRO	47 Neutral	$528.09M	-12.78	-5.00%	4.39%	<0.01%	-143.88%

Koppers Holdings Corporate Events

Koppers Holdings Expands Board with New Director

On November 5, 2025, Koppers Holdings Inc. expanded its Board of Directors from eight to nine members by electing Laura Posadas as a new director. Ms. Posadas, an experienced executive in the specialty chemicals industry, currently serves as CEO of Canlak Coatings Inc. and brings a strong track record of driving innovation and strategic growth. Her appointment reflects Koppers’ efforts to refresh its board with diverse skillsets to support the company’s future direction and transformation.