# Koppers Holdings (KOP.US)

Canonical: https://gigainvestors.com/s/KOP

Analysis as of: 2026-10-16T07:29:41.976Z. Financial observations: FY2005–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $43.44 per share; close as of 2026-10-15.

Estimated value: low $35.18 per share, central $40.01 per share, high $46.44 per share. Buy at or below the central value $40.01 per share. Valuation as of 2026-10-16T07:29:41.976Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.08×

- FY2018: 0.06×

- FY2019: 0.08×

- FY2020: 0.09×

- FY2021: 0.09×

- FY2022: 0.07×

- FY2023: 0.09×

- FY2024: 0.07×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.4%

- ROIC, second-lowest year: 9.4%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 20.2%

- Recent gross margin (lower of latest and 3-year median): 20.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 4.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.5%

- FY2017: 13.8%

- FY2018: 10.1%

- FY2019: 14.7%

- FY2020: 14.3%

- FY2021: 11.8%

- FY2022: 9.4%

- FY2023: 13.2%

- FY2024: 9.0%

- FY2025: 12.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.82×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $282M

- Net income, five-year total: $346M

- Return on incremental invested capital: 40.1%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.6 pp

- Working capital / revenue, final three-year average: 20.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.24×

- FY2022: 1.00×

- FY2023: 0.91×

- FY2024: 0.81×

- FY2025: 1.33×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 12.5% vs 12.3%

- Per-share earnings: 1.32 to 2.74 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.1%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: -$322M

- Cumulative retained earnings: $564M

- Diluted shares, 10-year annual growth: -0.1%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.6%

- Per-share value change: $1.42

- Per-share value, starting three-year median: $1.32

- Per-share value, ending three-year median: $2.74

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 3.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $399M

- Cumulative net income, 10 years: $617M

- ROIC, first three-year median: 12.5%

- ROIC, last three-year median: 12.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.39

- FY2017: $1.32

- FY2018: $1.10

- FY2019: $3.16

- FY2020: $5.71

- FY2021: $3.89

- FY2022: $2.97

- FY2023: $4.14

- FY2024: $2.46

- FY2025: $2.74

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 11.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.19×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.76×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.3%

- FY2017: -6.1%

- FY2018: -3.7%

- FY2019: -3.1%

- FY2020: -0.4%

- FY2021: -1.1%

- FY2022: -2.3%

- FY2023: -3.1%

- FY2024: -3.5%

- FY2025: -3.5%

## Holders

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 23% since Feb 2024 · "Koppers forecasts $3.80-$4.60 EPS in 2026 as it plans Stickney distillation exit by year-end" (seekingalpha.com, May 2026) · sales -10.2%

Story as of 2026-10-16T09:59:01.980Z; price observation 2026-10-15.

Price needs cash profits to grow 1.9% a year for ten years

- 2025-08-08: Koppers outlines $1.9B-$2B 2025 sales target amid cost reductions and margin-focused transformation ([seekingalpha.com](https://seekingalpha.com/news/4482799-koppers-outlines-1_9b-2b-2025-sales-target-amid-cost-reductions-and-margin-focused?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales -10.2%; source https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm; observed 2026-02-26.

- FY2016: $1.4B 

- FY2017: $1.5B 

- FY2018: $1.7B 

- FY2019: $1.6B 

- FY2020: $1.7B 

- FY2021: $1.7B 

- FY2022: $2.0B 

- FY2023: $2.2B 

- FY2024: $2.1B 

- FY2025: $1.9B 

### Gross margin · FY2025

gross margin 23.8%; source https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm; observed 2026-02-26.

- FY2016: 20.4% 

- FY2017: 21.8% 

- FY2018: 19.6% 

- FY2019: 20.2% 

- FY2020: 21.6% 

- FY2021: 19.9% 

- FY2022: 17.4% 

- FY2023: 19.7% 

- FY2024: 20.2% 

- FY2025: 23.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in specialty chemicals; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm (filed 2026-02-26); FY2025: revenue 1879300000; grossProfit 447800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); KOP.US: Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. It operates through three segments: Railroad and Utility Products and Services; Performance Chemicals; and Carbon Materials and Chemicals. The company procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings; offers utility products, including pressure treatment of transmission and distribution poles for electric and telephone utilities; untreated wood products and rail joint bars; provides railroad markets and inspection services to the utility markets; and operate a business related to the recovery of used crossties. It also provides copper-based wood preservatives comprising micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, dichloro-octyl-isothiazolinone, chromated copper arsenate under the MicroPro and MicroShades brands for decking, fencing, utility poles, construction lumber and timbers, and various agricultural applications; and supplies fire-retardant chemicals under the FlamePro brand for pressure treatment of wood applications. In addition, the company offers creosote for the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a surfactant in the production of concrete; and carbon black feedstock. It serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction sectors. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, Pennsylvania.

### Why customers stay

Margins ranged from 19.7% to 23.8% during 2023–25; it earns 12.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 19.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 20.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 23.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,0.1252401634609213],[2017,0.13789742619227857],[2018,0.1011416490486258],[2019,0.1466563666659636],[2020,0.14348463070972325],[2021,0.11843838463174775],[2022,0.09429518661200391],[2023,0.13163831005732804],[2024,0.09040750481251525],[2025,0.12305050794105024]]; median 0.12414533570098576. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 27.7% of cash earnings; earns 40.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 49900000; cash acquisitions 0; owner earnings 32300000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 10879451.944858685; upkeep 56620548.055141315; cash acquisitions 0; owner earnings 22279451.944858685. Growth capex plus acquisitions / owner earnings = 0.48831775448449843.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 48274002.17379031; upkeep 61425997.82620969; cash acquisitions 264000000; owner earnings 12774002.173790313. Growth capex plus acquisitions / owner earnings = 24.44605832418863.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 37200000; cash acquisitions 0; owner earnings 84499999. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 8084237.4147962555; upkeep 61715762.585203744; cash acquisitions 0; owner earnings 114384237.41479626. Growth capex plus acquisitions / owner earnings = 0.07067614907008606.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 2672643.9035968333; upkeep 122327356.09640317; cash acquisitions 0; owner earnings 20572643.903596833. Growth capex plus acquisitions / owner earnings = 0.12991251470257353.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 49200000; upkeep 56100000; cash acquisitions 14700000; owner earnings 63400000. Growth capex plus acquisitions / owner earnings = 1.0078864353312302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 55591652.62394261; upkeep 64908347.37605739; cash acquisitions 0; owner earnings 81291652.62394261. Growth capex plus acquisitions / owner earnings = 0.6838543790112265.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 77400000; cash acquisitions 99300000; owner earnings 42500000. Growth capex plus acquisitions / owner earnings = 2.336470588235294.

- Source: https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 55000000; cash acquisitions 20700000; owner earnings 74600000. Growth capex plus acquisitions / owner earnings = 0.2774798927613941.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.40097676075854155, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,595700000],[2017,1205400000],[2018,334900000],[2019,4200000],[2020,4200000],[2021,1100000],[2022,4200000],[2023,5000000],[2024,5900000],[2025,6400000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 38200000 USD.

### What the price says

The price assumes cash profits grow 1.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.014701218306594543. Price 43.44; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -2.614283627866219 → FY2025 3.6559666748345996. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $32.75 per share

- 2016-11: $38.35 per share

- 2016-12: $40.30 per share

- 2017-01: $40.45 per share

- 2017-02: $43.85 per share

- 2017-03: $42.35 per share

- 2017-04: $42.45 per share

- 2017-05: $36.05 per share

- 2017-06: $36.15 per share

- 2017-07: $36.30 per share

- 2017-08: $39.20 per share

- 2017-09: $46.15 per share

- 2017-10: $48.55 per share

- 2017-11: $49.90 per share

- 2017-12: $50.90 per share

- 2018-01: $45.80 per share

- 2018-02: $40.40 per share

- 2018-03: $41.10 per share

- 2018-04: $43.80 per share

- 2018-05: $40.30 per share

- 2018-06: $38.35 per share

- 2018-07: $37.55 per share

- 2018-08: $35.45 per share

- 2018-09: $31.15 per share

- 2018-10: $26.75 per share

- 2018-11: $18.64 per share

- 2018-12: $17.04 per share

- 2019-01: $22.79 per share

- 2019-02: $24.59 per share

- 2019-03: $25.98 per share

- 2019-04: $26.74 per share

- 2019-05: $26.66 per share

- 2019-06: $29.36 per share

- 2019-07: $27.30 per share

- 2019-08: $26.51 per share

- 2019-09: $29.21 per share

- 2019-10: $32.10 per share

- 2019-11: $37.05 per share

- 2019-12: $38.22 per share

- 2020-01: $31.38 per share

- 2020-02: $21.86 per share

- 2020-03: $12.37 per share

- 2020-04: $15.76 per share

- 2020-05: $16.57 per share

- 2020-06: $18.84 per share

- 2020-07: $25.17 per share

- 2020-08: $24.06 per share

- 2020-09: $20.91 per share

- 2020-10: $22.43 per share

- 2020-11: $27.07 per share

- 2020-12: $31.16 per share

- 2021-01: $33.28 per share

- 2021-02: $33.41 per share

- 2021-03: $34.76 per share

- 2021-04: $33.24 per share

- 2021-05: $34.67 per share

- 2021-06: $32.35 per share

- 2021-07: $30.71 per share

- 2021-08: $32.90 per share

- 2021-09: $31.26 per share

- 2021-10: $35.09 per share

- 2021-11: $30.20 per share

- 2021-12: $31.30 per share

- 2022-01: $29.88 per share

- 2022-02: $28.63 per share

- 2022-03: $27.52 per share

- 2022-04: $24.26 per share

- 2022-05: $27.10 per share

- 2022-06: $22.64 per share

- 2022-07: $23.54 per share

- 2022-08: $22.83 per share

- 2022-09: $20.78 per share

- 2022-10: $24.96 per share

- 2022-11: $29.79 per share

- 2022-12: $28.20 per share

- 2023-01: $34.61 per share

- 2023-02: $35.89 per share

- 2023-03: $34.97 per share

- 2023-04: $32.81 per share

- 2023-05: $28.96 per share

- 2023-06: $34.10 per share

- 2023-07: $38.26 per share

- 2023-08: $38.29 per share

- 2023-09: $39.55 per share

- 2023-10: $36.57 per share

- 2023-11: $45.17 per share

- 2023-12: $51.22 per share

- 2024-01: $51.14 per share

- 2024-02: $56.62 per share

- 2024-03: $55.17 per share

- 2024-04: $51.28 per share

- 2024-05: $44.33 per share

- 2024-06: $36.99 per share

- 2024-07: $40.71 per share

- 2024-08: $39.58 per share

- 2024-09: $36.53 per share

- 2024-10: $34.01 per share

- 2024-11: $38.46 per share

- 2024-12: $32.40 per share

- 2025-01: $29.76 per share

- 2025-02: $29.11 per share

- 2025-03: $28.00 per share

- 2025-04: $25.06 per share

- 2025-05: $30.72 per share

- 2025-06: $32.15 per share

- 2025-07: $32.86 per share

- 2025-08: $28.98 per share

- 2025-09: $28.00 per share

- 2025-10: $28.22 per share

- 2025-11: $29.67 per share

- 2025-12: $27.08 per share

- 2026-01: $29.46 per share

- 2026-02: $37.80 per share

- 2026-03: $38.68 per share

- 2026-04: $40.83 per share

- 2026-05: $40.80 per share

- 2026-06: $44.90 per share

- 2026-07: $49.02 per share

- 2026-08: $45.87 per share

- 2026-09: $45.59 per share

- 2026-10: $43.44 per share

## Annual estimated value (USD per share)

- FY2016: low $4.53 per share, central $5.15 per share, high $5.98 per share

- FY2017: low $5.91 per share, central $6.53 per share, high $7.36 per share

- FY2018: low $6.80 per share, central $7.70 per share, high $8.90 per share

- FY2019: low $13.16 per share, central $15.39 per share, high $17.90 per share

- FY2020: low $20.13 per share, central $23.40 per share, high $27.17 per share

- FY2021: low $13.18 per share, central $14.92 per share, high $17.24 per share

- FY2022: low $32.51 per share, central $37.00 per share, high $42.97 per share

- FY2023: low $43.82 per share, central $51.56 per share, high $59.82 per share

- FY2024: low $35.75 per share, central $42.25 per share, high $49.15 per share

- FY2025: low $32.25 per share, central $36.69 per share, high $42.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1315257/000131525726000012/kop-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.