Koppers Holdings (KOP) AI Stock Analysis

• Market Cap: $670.14M
• Dividend Yield: 0.87%
• Average Volume (3M): 123.90K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.04
• Revenue Growth: -4.09%
• EPS Growth: -66.97%
• Country: US
• Employees: 2,082
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Chemicals - Specialty
• EPS (TTM): 0.71
• Shares Outstanding: 20,010,069
• 10 Day Avg. Volume: 121,693
• 30 Day Avg. Volume: 123,904
• PEG Ratio: -0.51
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.09
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $64.00
• Price Target Upside: 85.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $33.00 ▼(-4.60%Downside)

Koppers Holdings' overall score reflects a balance of mixed financial performance, positive technical indicators, and strategic corporate initiatives. While high leverage and valuation concerns weigh on the score, the company's efforts to enhance operational efficiency and strategic flexibility are positive factors.

Positive Factors

Market Leadership

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

Strategic Inflection

Koppers is at an inflection point in its strategy with capital projects ending and expected to return significant improvement with long-term upside potential.

Negative Factors

Financial Expectations

KOP reported Q4/24 financial results that were less than both analyst and consensus expectations.

Market Share Challenges

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

Sales Decline

Consolidated sales of $456.6 million decreased by 8.3% compared with $497.6 million in Q1/24.

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 three main business segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RUPS segment provides treated wood products and related services to the railroad and utilities industries, which includes crossties, switch ties, and utility poles. The Performance Chemicals segment supplies wood preservation chemicals that are used for residential and industrial applications. The Carbon Materials and Chemicals segment produces carbon pitch and other chemicals derived from coal tar, used in the production of aluminum and steel. Koppers' earnings are significantly influenced by long-term contracts and partnerships with major companies in the railroad, utility, and industrial sectors, ensuring a steady demand for its products and services.

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. Improvements in revenue and debt management are needed to enhance financial stability.

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	2.05B	2.09B	2.15B	1.98B	1.68B	1.67B
Gross Profit	412.70M	422.60M	366.60M	344.60M	334.10M	360.40M
EBITDA	179.80M	213.00M	252.60M	196.30M	217.80M	213.10M
Net Income	25.50M	52.40M	89.20M	63.40M	85.20M	89.10M
Balance Sheet
Total Assets	1.66B	1.89B	1.84B	1.71B	1.66B	1.60B
Cash, Cash Equivalents and Short-Term Investments	45.50M	43.90M	66.50M	33.30M	45.50M	38.50M
Total Debt	875.10M	1.02B	930.70M	904.50M	875.10M	878.40M
Total Liabilities	1.25B	1.40B	1.33B	1.31B	1.25B	1.25B
Stockholders Equity	406.60M	488.70M	498.90M	399.40M	406.60M	341.70M
Cash Flow
Free Cash Flow	43.60M	42.00M	25.60M	-3.00M	-22.00M	57.30M
Operating Cash Flow	109.00M	119.40M	146.10M	102.30M	103.00M	127.10M
Investing Cash Flow	-165.10M	-173.30M	-116.00M	-114.80M	-89.50M	5.60M
Financing Cash Flow	41.40M	35.70M	2.60M	4.80M	-4.00M	-128.70M

Koppers Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 34.59 is above the 20-day moving average (MA) of 33.36, above the 50-day MA of 32.27, and above the 200-day MA of 31.52, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 82.31 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
OEC	68 Neutral	$638.10M	24.87	5.55%	0.73%	-2.31%	-69.16%
ECVT	67 Neutral	$1.03B	17.67	-1.64%	―	2.23%	-115.70%
SCL	66 Neutral	$1.28B	23.11	4.65%	2.68%	-0.16%	47.70%
KOP	64 Neutral	$670.14M	29.24	5.08%	0.87%	-4.09%	-66.97%
Sector *	63 Neutral	$10.49B	10.77	1.52%	2.68%	2.24%	-33.79%
MTX	61 Neutral	$2.08B	1,441.63	0.13%	0.66%	-3.93%	-97.39%
NGVT	55 Neutral	$1.69B	―	-88.14%	―	-17.68%	-214.32%

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.

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.