Texas Permanent School Fund Reduces Investments in Koppers Holdings
June 25, 2023
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The Texas Permanent School Fund has recently taken decisive action to reduce their holdings in Koppers Holdings ($NYSE:KOP) Inc. Koppers Holdings Inc. is a multi-industry company that produces and distributes carbon materials and chemicals, as well as providing services related to treating wood for the utility, industrial, and construction sectors. The Texas Permanent School Fund has seen fit to reduce their exposure to Koppers Holdings Inc., due to the uncertain economic outlook and the potential risk associated with such an investment. The fund believes that by reducing their exposure, they can better protect the educational funds they manage. This decision is a sensible one, as the education system is a valuable service, and any potential risks should be avoided where possible.
While the Texas Permanent School Fund has reduced their investment in Koppers Holdings Inc., this does not mean that the company is no longer a viable option for investors. The company remains a strong entity in the industry, with products and services that are in demand all over the world. For investors who are willing to take on the risk associated with such a venture, Koppers Holdings Inc. still offers a potentially attractive opportunity for growth and returns.
Price History
On Monday, Koppers Holdings Inc. (KOP) suffered a 1.0% decline in stock price as the Texas Permanent School Fund reduced its investments. The stock opened at $32.0 and closed at $31.6, which was lower than its previous closing price of 31.9. This news caused investors to take a more cautious stance on the company’s stock, leading to the decline in price. Despite the drop in stock price, Koppers Holdings Inc. still remains a solid investment option with its portfolio of industrial products, services, and materials-based solutions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Koppers Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 2.03k | 70.1 | 3.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Koppers Holdings. More…
| Operations | Investing | Financing |
| 95 | -121.3 | 28.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Koppers Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.8k | 1.37k | 20.68 |
Key Ratios Snapshot
Some of the financial key ratios for Koppers Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | 5.6% | 7.4% |
| FCF Margin | ROE | ROA |
| -0.7% | 22.8% | 5.3% |
Analysis
At GoodWhale, we recently ran an analysis of KOPPERS HOLDINGS‘s financials and the results are quite promising. According to our Star Chart assessment, KOPPERS HOLDINGS has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that the company may be able to safely ride out any crisis without the risk of bankruptcy. Further analysis reveals that KOPPERS HOLDINGS is strong in dividend, growth, profitability, and medium in asset. We have classified KOPPERS HOLDINGS as a ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Given these results, KOPPERS HOLDINGS may be attractive to a variety of investors. On the other hand, investors looking for more rapid growth and higher returns may also be interested as it has the potential to deliver long-term gains. Therefore, we believe KOPPERS HOLDINGS is a stock worth taking a closer look at. More…
Peers
The company operates in North America, Europe, Asia Pacific, and South America. Koppers Holdings Inc. has been in business for over 100 years and has a strong brand presence. The company’s main competitors are Atul Ltd, Shikoku Chemicals Corp, and Ingevity Corp.
– Atul Ltd ($BSE:500027)
Atul Ltd is a market leader in the chemical industry with a market cap of 242.04B as of 2022. The company has a strong focus on R&D and innovation, which has led to a strong portfolio of products and technologies. Atul Ltd has a return on equity of 11.43%. The company has a strong presence in India and Asia Pacific region.
– Shikoku Chemicals Corp ($TSE:4099)
Shikoku Chemicals Corp is a publicly traded company with a market capitalization of $67.38 billion as of 2022. The company has a return on equity of 7.74%. Shikoku Chemicals Corp is engaged in the manufacture and sale of chemicals and chemical products. The company’s products include plastics, resins, dyes, and pigments. Shikoku Chemicals Corp is headquartered in Tokyo, Japan.
– Ingevity Corp ($NYSE:NGVT)
Ingevity is a company that provides products and services based on carbon technology. They have a market cap of $2.49 billion and a return on equity of 22.28%. The company has been in business for over 60 years and has a strong presence in North America, Europe, and Asia. Ingevity’s products are used in a variety of industries, including automotive, construction, and mining.
Summary
Koppers Holdings Inc. is a specialty chemicals and treated wood products company. Investing analysts suggest the recent decline is due to Koppers’ weaker financial performance in the last year relative to its competitors. They cite lower sales and operating income growth, increased costs related to raw materials, and increased interest expenses as factors contributing to the company’s depressed stock value.
Analysts are also critical of the company’s proposed growth strategy and level of debt. Despite these concerns, some analysts remain optimistic on Koppers’ outlook, citing its strong balance sheet and long-term commitment to developing new products and services.
