NEW YORK (TheStreet) -- Shares of Koppers Holdings Inc. (KOP) - Get Report are down -7.37% to $39.46 on Monday after the company announced consolidated sales and net income decreased for the 2014 first quarter.
Koppers reported consolidated sales of $331.4 million versus $370.4 million from the same period in 2013.
The company, which provides carbon compounds and commercial wood treatment products and services, said net income for the quarter was $2.2 million, or 11 cents per diluted share, compared to $11.0 million, or 53 cents per diluted share from the 2013 first quarter.
TheStreet Ratings team rates KOPPERS HOLDINGS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate KOPPERS HOLDINGS INC (KOP) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 123.17% to $52.00 million when compared to the same quarter last year. In addition, KOPPERS HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -36.77%.
- KOP, with its decline in revenue, underperformed when compared the industry average of 12.0%. Since the same quarter one year prior, revenues slightly dropped by 8.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for KOPPERS HOLDINGS INC is currently extremely low, coming in at 14.98%. 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, KOP's net profit margin of -1.19% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 130.1% when compared to the same quarter one year ago, falling from $13.60 million to -$4.10 million.
- You can view the full analysis from the report here: KOP Ratings Report