Koppers Holdings: Signs Of Deterioration In Q3 Earnings

Summary

  • KOP is an integrated manufacturer of wood protection chemicals and pressure treated wood products.
  • The company operates in cyclical, commoditized and mature industries.
  • Although I believe it should be returning capital, the company continues investing heavily, particularly on its less profitable segments.
  • With that in mind, I consider KOP should trade based on an average of its earnings across the cycle.
  • However, it currently trades significantly above that level.

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Koppers Holdings (NYSE:KOP) is a global integrated manufacturer of wood protection chemicals and treated wood products.

In my initiation coverage article on KOP I commented on the company's mature and commoditized industries, its less than

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Data by YCharts

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Data by YCharts

KOP's revenues and EBITDA by segment

KOP's 3Q22 10-Q report filed with the SEC

This article was written by

I am a Business Management student in Buenos Aires, Argentina. I specialize in global micro, small and medium size companies that trade in the US using a Due Diligence approach, scrapping for as much information as possible about the company, and making qualitative judgments. I speak five languages (Spanish, English, Chinese, Italian, Portuguese). I also create written content used in various formats including blogs, emails, white papers, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable.Homo sum, humani nihil a me alienum puto Disclaimer: All of the author's articles are written on an "as is" basis and without warranty. They represent the author's opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions. The author disclaims all liability for any actions taken based on the information contained in any articles published.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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