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Is Koppers (KOP) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Koppers (KOP - Free Report) is a stock many investors are watching right now. KOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.74 right now. For comparison, its industry sports an average P/E of 16.47. Over the past 52 weeks, KOP's Forward P/E has been as high as 11.01 and as low as 2.58, with a median of 6.90.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KOP has a P/S ratio of 0.36. This compares to its industry's average P/S of 1.07.

Finally, we should also recognize that KOP has a P/CF ratio of 3.46. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KOP's P/CF compares to its industry's average P/CF of 11.73. KOP's P/CF has been as high as 8.38 and as low as 1.64, with a median of 3.53, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Koppers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KOP feels like a great value stock at the moment.


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