Koppers Holdings Inc.
Koppers Holdings Inc. Fundamental Analysis
Koppers Holdings Inc. (KOP) shows moderate financial fundamentals with a PE ratio of 13.36, profit margin of 2.98%, and ROE of 10.45%. The company generates $1.9B in annual revenue with weak year-over-year growth of -2.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KOP's fundamental strength across five key dimensions:
Efficiency Score
WeakKOP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKOP trades at attractive valuation levels.
Growth Score
WeakKOP faces weak or negative growth trends.
Financial Health Score
ModerateKOP shows balanced financial health with some risks.
Profitability Score
WeakKOP struggles to sustain strong margins.
Key Financial Metrics
Is KOP Expensive or Cheap?
P/E Ratio
KOP trades at 13.36 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KOP's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Koppers Holdings Inc. at 1.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.87 times EBITDA. This is generally considered low.
How Well Does KOP Make Money?
Net Profit Margin
For every $100 in sales, Koppers Holdings Inc. keeps $2.98 as profit after all expenses.
Operating Margin
Core operations generate 9.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.45 in profit for every $100 of shareholder equity.
ROA
Koppers Holdings Inc. generates $2.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Koppers Holdings Inc. generates limited operating cash flow of $121.17M, signaling weaker underlying cash strength.
Free Cash Flow
Koppers Holdings Inc. produces free cash flow of $66.77M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.40 in free cash annually.
FCF Yield
KOP converts 9.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How KOP Stacks Against Its Sector Peers
| Metric | KOP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.36 | 24.91 | Better (Cheaper) |
| ROE | 10.45% | 840.00% | Weak |
| Net Margin | 2.98% | -105381.00% (disorted) | Weak |
| Debt/Equity | 1.78 | 0.55 | Weak (High Leverage) |
| Current Ratio | 2.94 | 4.94 | Strong Liquidity |
| ROA | 2.97% | -4176.00% (disorted) | Weak |
KOP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Koppers Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.05%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-21.30%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
3.59%
Industry Style: Cyclical, Commodity, Value
Growing