NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- KOP's revenue growth has slightly outpaced the industry average of 1.6%. Since the same quarter one year prior, revenues rose by 11.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 75.3% when compared to the same quarter one year prior, rising from $8.90 million to $15.60 million.
- KOPPERS HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KOPPERS HOLDINGS INC reported lower earnings of $1.79 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($3.51 versus $1.79).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Chemicals industry and the overall market, KOPPERS HOLDINGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for KOPPERS HOLDINGS INC is currently extremely low, coming in at 14.20%. Regardless of KOP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.10% trails the industry average.
Koppers Holdings Inc. produces and sells carbon compounds and commercial wood treatment products and services to aluminum, railroad, specialty chemical, utility, concrete, and steel industries. It operates in two segments, Carbon Materials & Chemicals and Railroad & Utility Products. The company has a P/E ratio of 22.5, equal to the average chemicals industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Koppers has a market cap of $826.6 million and is part of the
industry. Shares are up 14.1% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff