KOPPERS HOLDINGS INC (KOP) Stock Fundamental Analysis
NYSE:KOP - New York Stock Exchange, Inc. - US50060P1066 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to KOP. KOP was compared to 85 industry peers in the Chemicals industry. KOP has only an average score on both its financial health and profitability. KOP is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KOP was profitable.
In the past year KOP had a positive cash flow from operations.
KOP had positive earnings in each of the past 5 years.
KOP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KOP's Return On Assets of 1.35% is in line compared to the rest of the industry. KOP outperforms 51.76% of its industry peers.
KOP has a Return On Equity (5.12%) which is comparable to the rest of the industry.
KOP has a Return On Invested Capital of 8.20%. This is in the better half of the industry: KOP outperforms 74.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KOP is in line with the industry average of 6.83%.
The last Return On Invested Capital (8.20%) for KOP is above the 3 year average (8.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 5.12% | ||
| ROIC | 8.2% |
ROA(3y)3.78%
ROA(5y)4.82%
ROE(3y)14.83%
ROE(5y)20.23%
ROIC(3y)8.01%
ROIC(5y)7.9%
1.3 Margins
With a Profit Margin value of 1.24%, KOP perfoms like the industry average, outperforming 49.41% of the companies in the same industry.
In the last couple of years the Profit Margin of KOP has declined.
KOP has a Operating Margin of 9.16%. This is comparable to the rest of the industry: KOP outperforms 51.76% of its industry peers.
In the last couple of years the Operating Margin of KOP has remained more or less at the same level.
KOP has a worse Gross Margin (21.07%) than 64.71% of its industry peers.
In the last couple of years the Gross Margin of KOP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.16% | ||
| PM (TTM) | 1.24% | ||
| GM | 21.07% |
OM growth 3Y3.42%
OM growth 5Y0.98%
PM growth 3Y-20.98%
PM growth 5Y-9.25%
GM growth 3Y0.49%
GM growth 5Y0%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KOP is destroying value.
Compared to 1 year ago, KOP has less shares outstanding
KOP has less shares outstanding than it did 5 years ago.
KOP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.33 indicates that KOP is not a great score, but indicates only limited risk for bankruptcy at the moment.
KOP has a better Altman-Z score (2.33) than 61.18% of its industry peers.
The Debt to FCF ratio of KOP is 22.50, which is on the high side as it means it would take KOP, 22.50 years of fcf income to pay off all of its debts.
KOP has a Debt to FCF ratio (22.50) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.96 is on the high side and indicates that KOP has dependencies on debt financing.
KOP has a Debt to Equity ratio of 1.96. This is amonst the worse of the industry: KOP underperforms 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 22.5 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.87
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.64 indicates that KOP has no problem at all paying its short term obligations.
KOP's Current ratio of 2.64 is fine compared to the rest of the industry. KOP outperforms 75.29% of its industry peers.
A Quick Ratio of 1.10 indicates that KOP should not have too much problems paying its short term obligations.
KOP has a Quick ratio (1.10) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.79% over the past year.
Measured over the past 5 years, KOP shows a small growth in Earnings Per Share. The EPS has been growing by 4.48% on average per year.
Looking at the last year, KOP shows a decrease in Revenue. The Revenue has decreased by -4.09% in the last year.
The Revenue has been growing slightly by 5.03% on average over the past years.
EPS 1Y (TTM)8.79%
EPS 3Y-0.72%
EPS 5Y4.48%
EPS Q2Q%14.52%
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y7.62%
Revenue growth 5Y5.03%
Sales Q2Q%-8.26%
3.2 Future
Based on estimates for the next years, KOP will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.40% on average per year.
Based on estimates for the next years, KOP will show a decrease in Revenue. The Revenue will decrease by -0.30% on average per year.
EPS Next Y12.93%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.14%
Revenue Next 2Y-0.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.22, which indicates a very decent valuation of KOP.
91.76% of the companies in the same industry are more expensive than KOP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.04, KOP is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.65, the valuation of KOP can be described as very cheap.
KOP's Price/Forward Earnings ratio is rather cheap when compared to the industry. KOP is cheaper than 91.76% of the companies in the same industry.
KOP is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
KOP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KOP is cheaper than 84.71% of the companies in the same industry.
76.47% of the companies in the same industry are more expensive than KOP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.87 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KOP's earnings are expected to grow with 12.40% in the coming years.
PEG (NY)0.64
PEG (5Y)1.84
EPS Next 2Y12.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, KOP is not a good candidate for dividend investing.
KOP's Dividend Yield is comparable with the industry average which is at 3.57.
Compared to an average S&P500 Dividend Yield of 2.31, KOP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of KOP decreases each year by -7.49%.
KOP has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of KOP decreased in the last 3 years.
Dividend Growth(5Y)-7.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
23.53% of the earnings are spent on dividend by KOP. This is a low number and sustainable payout ratio.
DP23.53%
EPS Next 2Y12.4%
EPS Next 3YN/A
34.59
+1.1 (+3.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.94%
Inst Owner Change-0.99%
Ins Owners4.67%
Ins Owner Change0.55%
Market Cap692.15M
Analysts85.71
Price Target57.46 (66.12%)
Short Float %3.29%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.29
Dividend Growth(5Y)-7.49%
DP23.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.33%
Min EPS beat(2)-17.43%
Max EPS beat(2)12.78%
EPS beat(4)3
Avg EPS beat(4)1.43%
Min EPS beat(4)-17.43%
Max EPS beat(4)12.78%
EPS beat(8)5
Avg EPS beat(8)1.38%
EPS beat(12)8
Avg EPS beat(12)5.64%
EPS beat(16)11
Avg EPS beat(16)4.47%
Revenue beat(2)0
Avg Revenue beat(2)-6.78%
Min Revenue beat(2)-7.87%
Max Revenue beat(2)-5.7%
Revenue beat(4)0
Avg Revenue beat(4)-6.01%
Min Revenue beat(4)-7.87%
Max Revenue beat(4)-5.02%
Revenue beat(8)2
Avg Revenue beat(8)-1.96%
Revenue beat(12)4
Avg Revenue beat(12)-1.2%
Revenue beat(16)5
Avg Revenue beat(16)-1.34%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.37%
EPS NY rev (1m)0%
EPS NY rev (3m)5.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.22 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.34 | ||
| P/FCF | 15.87 | ||
| P/OCF | 6.35 | ||
| P/B | 1.39 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)4.21
EY12.17%
EPS(NY)5.2
Fwd EY15.05%
FCF(TTM)2.18
FCFY6.3%
OCF(TTM)5.45
OCFY15.75%
SpS102.5
BVpS24.89
TBVpS3.25
PEG (NY)0.64
PEG (5Y)1.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 5.12% | ||
| ROCE | 11.54% | ||
| ROIC | 8.2% | ||
| ROICexc | 8.37% | ||
| ROICexgc | 11.49% | ||
| OM | 9.16% | ||
| PM (TTM) | 1.24% | ||
| GM | 21.07% | ||
| FCFM | 2.13% |
ROA(3y)3.78%
ROA(5y)4.82%
ROE(3y)14.83%
ROE(5y)20.23%
ROIC(3y)8.01%
ROIC(5y)7.9%
ROICexc(3y)8.28%
ROICexc(5y)8.16%
ROICexgc(3y)11.62%
ROICexgc(5y)11.81%
ROCE(3y)11.26%
ROCE(5y)11.11%
ROICexcg growth 3Y4.72%
ROICexcg growth 5Y-0.94%
ROICexc growth 3Y6.46%
ROICexc growth 5Y1.75%
OM growth 3Y3.42%
OM growth 5Y0.98%
PM growth 3Y-20.98%
PM growth 5Y-9.25%
GM growth 3Y0.49%
GM growth 5Y0%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 22.5 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 94.24% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 42.36% | ||
| Profit Quality | 170.98% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.33 |
F-Score6
WACC9.41%
ROIC/WACC0.87
Cap/Depr(3y)171.26%
Cap/Depr(5y)171.89%
Cap/Sales(3y)4.87%
Cap/Sales(5y)5.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.79%
EPS 3Y-0.72%
EPS 5Y4.48%
EPS Q2Q%14.52%
EPS Next Y12.93%
EPS Next 2Y12.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.09%
Revenue growth 3Y7.62%
Revenue growth 5Y5.03%
Sales Q2Q%-8.26%
Revenue Next Year-3.14%
Revenue Next 2Y-0.3%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.68%
EBIT growth 3Y11.3%
EBIT growth 5Y6.06%
EBIT Next Year44.2%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y400.69%
FCF growth 3YN/A
FCF growth 5Y-12.22%
OCF growth 1Y14.74%
OCF growth 3Y5.05%
OCF growth 5Y0.27%