📊 KOP Key Takeaways
Is KOP a Good Investment? Thesis Analysis
Koppers faces significant operational headwinds with revenue declining 10.2% YoY while carrying elevated debt of 1.62x equity, constraining financial flexibility. Despite positive free cash flow of $67.5M, the company's razor-thin 3.0% net margin and low returns on capital (9.8% ROE, 3.0% ROA) limit its ability to deleverage or invest in growth. The combination of cyclical industry exposure, rising leverage burden relative to profitability, and deteriorating top-line performance suggests elevated financial risk.
Why Buy KOP? Key Strengths
- Positive free cash flow generation of $67.5M provides flexibility for debt service and reduction
- Operating cash flow of $122.5M demonstrates underlying business cash generation capability
- Healthy current ratio of 2.94x and interest coverage of 4.9x indicate adequate near-term solvency
KOP Investment Risks to Consider
- Revenue declining 10.2% YoY signals weakening demand and market share challenges in cyclical industry
- High leverage with 1.62x debt-to-equity ratio and $928M long-term debt amid low profitability margins
- Thin 3.0% net margin and 8.9% operating margin provide minimal cushion for cost pressures or margin compression
Key Metrics to Watch
- Revenue stabilization and quarterly comparisons indicating market demand recovery
- Operating margin expansion and gross margin recovery trends
- Debt reduction progress and leverage trajectory toward sub-1.5x debt-to-equity target
KOP Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.94x current ratio provides a solid financial cushion.
KOP Profitability Ratios
KOP vs Default Sector
How Koppers Holdings Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KOP Overvalued or Undervalued?
Based on fundamental analysis, Koppers Holdings Inc. shows some fundamental concerns relative to the Default 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.
KOP Balance Sheet & Liquidity
KOP 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
KOP Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $502.5M | $11.7M | $0.55 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KOP Capital Allocation
KOP SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Koppers Holdings Inc. (CIK: 0001315257)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KOP
What is the AI rating for KOP?
Koppers Holdings Inc. (KOP) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KOP's key strengths?
Claude: Positive free cash flow generation of $67.5M provides flexibility for debt service and reduction. Operating cash flow of $122.5M demonstrates underlying business cash generation capability.
What are the risks of investing in KOP?
Claude: Revenue declining 10.2% YoY signals weakening demand and market share challenges in cyclical industry. High leverage with 1.62x debt-to-equity ratio and $928M long-term debt amid low profitability margins.
What is KOP's revenue and growth?
Koppers Holdings Inc. reported revenue of $1.9B.
Does KOP pay dividends?
Koppers Holdings Inc. pays dividends, with $6.4M 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 $2.74.
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 rating reflects both perspectives for balanced insights.
Is KOP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Koppers Holdings Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KOP stock overvalued or undervalued?
Valuation metrics for KOP: ROE of 9.8% (sector avg: 15%), net margin of 3.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KOP stock in 2026?
Our dual AI analysis gives Koppers Holdings Inc. a combined SELL rating 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 $122.5M, with capital expenditures of $55.0M. FCF margin is 3.6%.
How does KOP compare to other Default stocks?
Vs Default sector averages: Net margin 3.0% (avg: 12%), ROE 9.8% (avg: 15%), current ratio 2.94 (avg: 1.8).