Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Koppers Holdings Inc. (KOP)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$7.71 - $11.97$9.68
Multi-Stage$10.16 - $11.13$10.64
Blended Fair Value$10.16
Current Price$28.00
Upside-63.72%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-11.67%0.290.250.210.000.000.000.000.000.000.43
YoY Growth--18.00%19.05%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%-57.35%
Dividend Yield--1.04%0.45%0.59%0.00%0.00%0.00%0.00%0.00%0.00%1.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)16.10
(-) Cash Dividends Paid (M)6.00
(=) Cash Retained (M)10.10
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.222.011.21
Cash Retained (M)10.1010.1010.10
(-) Cash Required (M)-3.22-2.01-1.21
(=) Excess Retained (M)6.888.098.89
(/) Shares Outstanding (M)20.2720.2720.27
(=) Excess Retained per Share0.340.400.44
LTM Dividend per Share0.300.300.30
(+) Excess Retained per Share0.340.400.44
(=) Adjusted Dividend0.640.690.73
WACC / Discount Rate9.33%9.33%9.33%
Growth Rate1.01%2.01%3.01%
Fair Value$7.71$9.68$11.97
Upside / Downside-72.45%-65.42%-57.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)16.1016.4216.7517.0917.4317.7918.32
Payout Ratio37.27%47.81%58.36%68.91%79.45%90.00%92.50%
Projected Dividends (M)6.007.859.7811.7813.8516.0116.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.33%9.33%9.33%
Growth Rate1.01%2.01%3.01%
Year 1 PV (M)7.117.187.25
Year 2 PV (M)8.028.188.34
Year 3 PV (M)8.759.019.28
Year 4 PV (M)9.329.6910.08
Year 5 PV (M)9.7510.2510.76
PV of Terminal Value (M)163.04171.28179.84
Equity Value (M)206.00215.59225.55
Shares Outstanding (M)20.2720.2720.27
Fair Value$10.16$10.64$11.13
Upside / Downside-63.71%-62.02%-60.26%

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