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PITTSBURGH - Koppers Holdings Inc . (NYSE: NYSE:KOP), a global provider of treated wood products, chemicals, and carbon compounds, has initiated a new $100 million share repurchase program, as announced by the company’s Board of Directors today. This program supersedes the previous $100 million repurchase program, which began in August 2021 and had approximately $11 million remaining. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis, with management demonstrating confidence through aggressive share buybacks in recent periods.
The decision to implement the new share repurchase program is a reflection of the Board’s and management’s confidence in Koppers’ financial health, particularly its improved free cash flow. The company’s CFO, Jimmi Sue Smith, remarked on the Board’s authorization, stating that it aligns with Koppers’ commitment to a flexible capital allocation policy that adapts to strategic needs and expected returns. InvestingPro data supports this confidence, showing a strong current ratio of 2.54 and consistent dividend growth, with a 33% increase in the last twelve months. Smith highlighted that with the completion of growth investment projects outlined in the company’s 2025 strategic plan, Koppers anticipates reduced capital expenditures and increased free cash flow. The company plans to use the additional cash flow for debt reduction and share repurchases, aiming to bring its net debt to adjusted EBITDA ratio within the targeted range of 2 to 3 times by the end of 2025. The company’s EBITDA currently stands at $255.2 million, with analysts forecasting continued profitability for the coming year.
The authorization does not bind Koppers to a fixed schedule for share repurchases, which will be considered intermittently based on various factors including market conditions, legal requirements, and other business considerations. The program does not have a set expiration date and may be paused or terminated at any time.
Koppers, with a workforce of approximately 2,100, operates globally, providing essential products for infrastructure such as railroad crossties, utility poles, and materials for construction. The company focuses on delivering sustainable solutions to support essential services like rail transport and power distribution. For a comprehensive analysis of Koppers’ financial health, growth prospects, and detailed valuation metrics, investors can access the full Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
This announcement is based on a press release statement from Koppers Holdings Inc. and does not include any speculative or forward-looking statements beyond those provided by the company.
In other recent news, Koppers Holdings Inc. has announced a 14% increase in its quarterly dividend, raising it from $0.07 to $0.08 per share. This adjustment will elevate the company’s annual dividend rate to $0.32 per share for 2025, pending regular quarterly reviews by the Board of Directors. The company emphasizes its commitment to generating sustainable, profitable growth while maintaining a balanced approach to capital allocation. Additionally, Koppers Holdings has disclosed an executive transition as Leslie S. Hyde, Senior Vice President and Chief Sustainability Officer, is set to retire on March 31, 2025. Hyde will assume the role of Assistant to the Chief Executive Officer until her retirement. No successor has been announced for the Chief Sustainability Officer position. These developments reflect Koppers’ strategic planning and leadership continuity efforts. The information is based on a press release and a Securities and Exchange Commission filing by the company.
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