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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Koppers (KOP - Free Report) . KOP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.49, which compares to its industry's average of 10.41. KOP's Forward P/E has been as high as 8.05 and as low as 4.88, with a median of 6.43, all within the past year.

We should also highlight that KOP has a P/B ratio of 1.31. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.08. Over the past year, KOP's P/B has been as high as 1.97 and as low as 1.10, with a median of 1.54.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KOP has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.7.

Finally, investors should note that KOP has a P/CF ratio of 4.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.72. Within the past 12 months, KOP's P/CF has been as high as 5.83 and as low as 3.17, with a median of 4.34.

These are just a handful of the figures considered in Koppers's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KOP is an impressive value stock right now.


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