Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $564.26M
• Dividend Yield: 1.07%
• Average Volume (3M): 158.38K
• Price to Earnings (P/E): 40.2
• Beta (1Y): 1.05
• 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: 164,024
• 30 Day Avg. Volume: 158,383
• 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: 2.98
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 4.14
• Enterprise Value/Ebitda: 10.31
• 1Y Price Target: $46.00
• Price Target Upside: 59.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: $33.00 ▲(14.31% 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 Efficiency

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.

Market Leadership

RUPS is a leading supplier of crossties to all 6 class 1 railroads in North America, which indicates strong market share leadership in providing critical infrastructure products.

Strategic Transformation

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

Negative Factors

Economic Headwinds

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

Market Share Loss

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.

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 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 revenue and profit margins, alongside high leverage. While the company demonstrates strong free cash flow growth, it must address its debt levels and improve operational efficiency to enhance financial health. The mixed performance across financial statements highlights the need for strategic adjustments to sustain growth and profitability.

Income Statement

Koppers Holdings shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate, which is concerning. However, the company maintains a stable gross profit margin around 20%, indicating efficient cost management. The net profit margin has decreased significantly in the TTM period, reflecting challenges in maintaining profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio, which poses a risk of financial leverage. The equity ratio is relatively low, suggesting limited equity financing. Return on equity has decreased over time, indicating reduced profitability from shareholders' investments. The company needs to manage its debt levels to improve financial stability.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate in the TTM period, which is a positive sign. The operating cash flow to net income ratio is below 1, indicating that operating cash flow is not fully covering net income. However, the free cash flow to net income ratio has improved, suggesting better cash generation relative to profits.

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: 28.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 28.87 is below the 20-day moving average (MA) of 29.24, below the 50-day MA of 31.54, and below the 200-day MA of 30.63, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 41.17 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
MTX	68 Neutral	$1.99B	1,393.61	0.13%	0.70%	-3.93%	-97.39%
SCL	67 Neutral	$1.12B	19.54	4.77%	3.07%	2.64%	66.43%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
KOP	61 Neutral	$564.26M	40.16	2.92%	1.07%	-6.20%	-80.00%
NGVT	61 Neutral	$2.15B	―	-106.83%	―	-14.45%	49.92%
ECVT	59 Neutral	$1.03B	17.67	-1.97%	―	4.93%	-124.60%
OEC	53 Neutral	$579.46M	37.39	3.11%	0.80%	-3.79%	-79.76%

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.