Koppers Holdings, headquartered in Pittsburgh, employs 2,108 staff and operates in treated wood products, wood treatment chemicals, and carbon compounds across three segments. It serves markets in North America, South America, Australasia, and Europe.
Based on our analysis, Koppers Holdings (KOP) has been assigned an undervalued rating of 4 out of 5 stars by Cashu. Several key financial ratios indicate that the company is trading below its intrinsic value compared to its industry peers.
The Price-to-Earnings (PE) Ratio for Koppers Holdings stands at 8.74, significantly lower than the sector average of 13.88. A lower PE ratio can suggest that the stock is undervalued relative to its earnings potential. Additionally, the company’s Price-to-Book (PB) Ratio of 2.14 exceeds the sector average of 1.52, indicating that the market is recognizing some intrinsic value, but still leaves room for further appreciation.
Koppers Holdings boasts a net profit margin of 4.14%, contrasting sharply with the sector's negative margin of -316.35%. This strong profitability metric highlights the company's effective cost management and operational efficiency. The Return on Equity (ROE) is another positive indicator, standing at 17.88% versus the sector's -21.14%, which signals that Koppers is generating robust returns on shareholder equity.
While the Dividend Yield of 0.87% is below the sector average of 1.21%, the company has shown resilience and potential for growth. Furthermore, the Return on Assets (ROA) ratio of 4.86% is also favorable compared to the sector's -17.85%, demonstrating effective asset utilization.
In summary, Koppers Holdings exhibits strong financial performance metrics that suggest it is undervalued relative to its industry peers, making it an attractive option for investors.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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