📊 KOP Key Takeaways
Is Koppers Holdings Inc. (KOP) a Good Investment?
Koppers Holdings faces significant financial distress with an interest coverage ratio of 0.6x, indicating operating income cannot cover interest expenses—a critical solvency concern. Revenue is declining 10.2% YoY while profit margins remain razor-thin (4.8% operating, 1.6% net), combined with high leverage (1.69x debt/equity) and substantial debt of $928.8M. Positive free cash flow and adequate liquidity provide temporary relief, but the fundamental deterioration in profitability and growth suggests elevated financial risk.
Fundamentals are mixed: operating profitability and free cash flow are positive, liquidity is solid, and EPS improved despite flat net income. However, a double-digit revenue decline and elevated leverage constrain flexibility, making the outlook dependent on a return to top-line growth and gradual debt reduction.
Koppers Holdings Inc. Key Strengths (KOP)
- Positive free cash flow of $34.9M with 7.7% FCF margin demonstrates operational cash generation capability
- Strong current ratio of 2.71x provides near-term liquidity buffer for operational needs
- EPS growth of 11.4% YoY despite flat net income reflects disciplined share count management
- Solid operating margin (8.9%) and positive FCF
- Strong liquidity (current ratio 2.94x; quick 1.13x)
- EPS growth (+11.4% YoY) with stable net income
KOP Stock Risks: Koppers Holdings Inc. Investment Risks
- Critical interest coverage ratio of 0.6x indicates operating income cannot cover interest expenses, signaling potential debt service distress
- Revenue declining 10.2% YoY with razor-thin operating margin of 4.8% and net margin of 1.6% shows deteriorating profitability
- High leverage with $928.8M long-term debt against only $42.8M cash, creating significant refinancing risk if market conditions tighten
- Revenue contraction (-10.2% YoY) in a cyclical industry
- High leverage (Debt/Equity 1.62; LT debt $928M) with modest cash
- Thin net margin (3.0%) and low ROA (3.0%)
Key Metrics to Watch
- Interest coverage ratio—must improve above 1.5x to indicate sustainable debt service capability
- Revenue trend reversal—critical to demonstrate whether business contraction is cyclical or structural
- Free cash flow sustainability—monitor if FCF remains positive and sufficient to reduce debt burden
- Revenue growth (YoY)
- Interest coverage
Koppers Holdings Inc. (KOP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.71x current ratio provides a solid financial cushion.
KOP Profit Margin, ROE & Profitability Analysis
KOP vs Materials Sector: How Koppers Holdings Inc. Compares
How Koppers Holdings Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Koppers Holdings Inc. Stock Overvalued? KOP Valuation Analysis 2026
Based on fundamental analysis, Koppers Holdings Inc. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Koppers Holdings Inc. Balance Sheet: KOP Debt, Cash & Liquidity
KOP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Koppers Holdings Inc.'s revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.14 reflects profitable operations.
KOP Revenue Growth, EPS Growth & YoY Performance
KOP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $455.3M | $7.1M | $0.35 |
| Q3 2025 | $485.3M | $22.8M | $1.09 |
| Q2 2025 | $504.8M | $2.5M | $0.12 |
| Q1 2025 | $456.5M | $13.0M | $0.59 |
| Q3 2024 | $550.4M | $22.8M | $1.09 |
| Q2 2024 | $563.2M | $24.5M | $1.15 |
| Q1 2024 | $497.6M | $13.0M | $0.59 |
| Q3 2023 | $536.1M | $19.1M | $0.91 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Koppers Holdings Inc. Dividends, Buybacks & Capital Allocation
KOP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Koppers Holdings Inc. (CIK: 0001315257)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 14, 2026 | 4 | xslF345X06/wk-form4_1778789116.xml | View → |
| May 14, 2026 | 4 | xslF345X06/wk-form4_1778788949.xml | View → |
| May 11, 2026 | 4 | xslF345X06/wk-form4_1778530756.xml | View → |
| May 11, 2026 | 4 | xslF345X06/wk-form4_1778530632.xml | View → |
| May 11, 2026 | 4 | xslF345X06/wk-form4_1778530506.xml | View → |
❓ Frequently Asked Questions about KOP
What is the AI rating for KOP?
Koppers Holdings Inc. (KOP) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KOP's key strengths?
Claude: Positive free cash flow of $34.9M with 7.7% FCF margin demonstrates operational cash generation capability. Strong current ratio of 2.71x provides near-term liquidity buffer for operational needs. ChatGPT: Solid operating margin (8.9%) and positive FCF. Strong liquidity (current ratio 2.94x; quick 1.13x).
What are the risks of investing in KOP?
Claude: Critical interest coverage ratio of 0.6x indicates operating income cannot cover interest expenses, signaling potential debt service distress. Revenue declining 10.2% YoY with razor-thin operating margin of 4.8% and net margin of 1.6% shows deteriorating profitability. ChatGPT: Revenue contraction (-10.2% YoY) in a cyclical industry. High leverage (Debt/Equity 1.62; LT debt $928M) with modest cash.
What is KOP's revenue and growth?
Koppers Holdings Inc. reported revenue of $455.3M.
Does KOP pay dividends?
Koppers Holdings Inc. pays dividends, with $2.2M distributed to shareholders in the trailing twelve months.
Where can I find KOP SEC filings?
Official SEC filings for Koppers Holdings Inc. (CIK: 0001315257) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KOP's EPS?
Koppers Holdings Inc. has a diluted EPS of $0.35.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KOP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Koppers Holdings Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is KOP stock overvalued or undervalued?
Valuation metrics for KOP: ROE of 1.3% (sector avg: 14%), net margin of 1.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is KOP's AI grade for 2026?
Our dual AI analysis gives Koppers Holdings Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KOP's free cash flow?
Koppers Holdings Inc.'s operating cash flow is $46.3M, with capital expenditures of $11.4M. FCF margin is 7.7%.
How does KOP compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.6% (avg: 10%), ROE 1.3% (avg: 14%), current ratio 2.71 (avg: 1.6).
Is Koppers Holdings Inc. carrying too much debt?
KOP has a debt-to-equity ratio of 1.69x, which is above the Materials sector average of 0.6x. However, the current ratio of 2.71 suggests adequate short-term liquidity.