DB:KP8

Stock Analysis Report

Executive Summary

KP Tissue Inc., through its interest in Kruger Products L.P., produces, distributes, markets, and sells a range of disposable tissue products in North America.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.

Share Price & News

How has KP Tissue's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KP8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.0%

KP8

-0.4%

DE Household Products

0.8%

DE Market


1 Year Return

38.9%

KP8

0.3%

DE Household Products

9.0%

DE Market

Return vs Industry: KP8 exceeded the German Household Products industry which returned 0.3% over the past year.

Return vs Market: KP8 exceeded the German Market which returned 9% over the past year.


Shareholder returns

KP8IndustryMarket
7 Day10.0%-0.4%0.8%
30 Day6.5%-0.4%6.3%
90 Day11.2%2.4%14.4%
1 Year51.3%38.9%2.8%0.3%12.4%9.0%
3 Year-18.3%-33.0%-9.4%-15.2%25.6%14.5%
5 Year-21.4%-42.0%24.5%11.1%41.0%21.8%

Price Volatility Vs. Market

How volatile is KP Tissue's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KP Tissue undervalued compared to its fair value and its price relative to the market?

1.21x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KP8 (€6.6) is trading above our estimate of fair value (€3.98)

Significantly Below Fair Value: KP8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KP8 is unprofitable, so we can't compare its PE Ratio to the Household Products industry average.

PE vs Market: KP8 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KP8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KP8 is good value based on its PB Ratio (1.2x) compared to the XE Household Products industry average (2.1x).


Next Steps

Future Growth

How is KP Tissue forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

142.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KP8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: KP8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KP8's is expected to become profitable in the next 3 years.

Revenue vs Market: Insufficient data to determine if KP8's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if KP8's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KP8's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has KP Tissue performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KP8 has large one-off items impacting its financial results.

Growing Profit Margin: Insufficient data to determine if KP8's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: KP8 is unprofitable, but has reduced losses over the past 5 years at a rate of 23% per year.

Accelerating Growth: Unable to compare KP8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KP8 is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (-34.3%).


Return on Equity

High ROE: KP8 has a negative Return on Equity (-2.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KP Tissue's financial position?


Financial Position Analysis

Short Term Liabilities: KP8's short term assets (CA$2.2M) exceeds its short term liabilities (CA$2.1M)

Long Term Liabilities: KP8's short term assets (2.2M) do not cover its long term liabilities (3.2M)


Debt to Equity History and Analysis

Debt Level: KP8 is debt free.

Reducing Debt: KP8 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: KP8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if KP8's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if KP8 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if KP8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is KP Tissue's current dividend yield, its reliability and sustainability?

7.29%

Current Dividend Yield


Upcoming Dividend Payment

Purchase KP Tissue before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company7.3%marketbottom25%1.4%markettop25%3.6%industryaverage2.4%forecastin3Years7.3%

Current dividend yield vs market & industry

Notable Dividend: KP8's dividend (7.29%) is higher than the bottom 25% of dividend payers in the German market (1.39%).

High Dividend: KP8's dividend (7.29%) is in the top 25% of dividend payers in the German market (3.64%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KP8 has been paying a dividend for less than 10 years.

Growing Dividend: KP8 has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: KP8 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: KP8's dividends in 3 years are not forecast to be well covered by earnings (149.7% payout ratio).


Next Steps

Management

What is the CEO of KP Tissue's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Dino Bianco (57yo)

1.7yrs

Tenure

CA$1,436,469

Compensation

Mr. Dino J. Bianco has been a Director of Welbilt, Inc. (formerly known as Manitowoc Foodservice, Inc.) since May 2015. He served as an Executive Vice President at Kraft Foods Group, Inc., from 2012 to Apr ...


CEO Compensation Analysis

Compensation vs Market: Dino's total compensation ($USD1.09M) is above average for companies of similar size in the German market ($USD215.15K).

Compensation vs Earnings: Insufficient data to compare Dino's compensation with company performance.


Management Age and Tenure

7.8yrs

Average Tenure

Experienced Management: KP8's management team is seasoned and experienced (7.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

Experienced Board: KP8's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: KP8 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$24,91615 Aug 19
Dino Bianco
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares4,200
Max PriceCA$5.95
BuyCA$26,97123 May 19
Michael Korenberg
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares5,000
Max PriceCA$5.41
BuyCA$9,10920 Dec 18
Michel Letellier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,780
Max PriceCA$5.12
SellCA$52,35618 Dec 18
Mario Gosselin
EntityIndividual
Shares10,000
Max PriceCA$5.27
BuyCA$5,62529 Nov 18
Michel Manseau
EntityIndividual
Role
Other Key Executive
Senior VP & GM of Consumer Business Canada - Kruger Products LP
Shares1,000
Max PriceCA$5.63
BuyCA$4,65827 Nov 18
David Angel
EntityIndividual
Role
Unit Board Member
Director of Kruger Products G.P
Shares837
Max PriceCA$5.57
BuyCA$5,96023 Nov 18
David Angel
EntityIndividual
Role
Unit Board Member
Director of Kruger Products G.P
Shares1,060
Max PriceCA$5.70
BuyCA$67,15822 Nov 18
Gene Kruger
EntityIndividual
Role
Unit Board Member
Director of Kruger Products G.P.
Shares11,800
Max PriceCA$5.80

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Management Team

  • Dino Bianco (57yo)

    Chief Executive Officer

    • Tenure: 1.7yrs
    • Compensation: CA$1.44m
  • François Paroyan

    General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Mark Holbrook

    Chief Financial Officer

    • Tenure: 0yrs
    • Compensation: CA$664.19k
  • Michel Manseau

    Senior VP & GM of Consumer Business Canada - Kruger Products LP

    • Tenure: 12.5yrs
    • Compensation: CA$690.46k
  • Marc Fitzgerald

    Corporate Vice President of Technology & Product Development - Kruger Products LP

    • Tenure: 6.3yrs
  • Rob Latter

    Senior VP & GM of Away from Home Business - Kruger Products LP

    • Tenure: 1.5yrs
    • Compensation: CA$649.76k
  • Nancy Marcus

    Chief Marketing Officer of Kruger Products L.P.

    • Tenure: 11.4yrs
    • Compensation: CA$606.28k
  • Gordon Goss

    Senior VP and GM of Consumer Business USA & Mexico - Kruger Products LP

    • Tenure: 8.8yrs
    • Compensation: CA$794.18k
  • Mike Baldesarra

    Director of Investor Relations

    • Tenure: 7.8yrs

Board Members

  • Michael Korenberg (58yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: CA$88.75k
  • Joseph Kruger

    Chairman of Kruger Products G.P.

    • Tenure: 0yrs
  • Michel Letellier (54yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: CA$75.00k
  • Jim Hardy

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$88.75k
  • David Angel

    Director of Kruger Products G.P

    • Tenure: 0yrs
  • Gene Kruger

    Director of Kruger Products G.P.

    • Tenure: 2.3yrs
  • Louise Denys Wendling

    Director

    • Tenure: 1.5yrs
    • Compensation: CA$39.03k

Company Information

KP Tissue Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KP Tissue Inc.
  • Ticker: KP8
  • Exchange: DB
  • Founded: 2012
  • Industry: Household Products
  • Sector: Household
  • Market Cap: CA$94.523m
  • Listing Market Cap: CA$64.868m
  • Shares outstanding: 9.58m
  • Website: https://kptissueinc.com

Location

  • KP Tissue Inc.
  • 1900 Minnesota Court
  • Suite 200
  • Mississauga
  • Ontario
  • L5N 5R5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KPTTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2012
KP8DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2012
KPTS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2012

Biography

KP Tissue Inc., through its interest in Kruger Products L.P., produces, distributes, markets, and sells a range of disposable tissue products in North America. The company operates through three segments:  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 21:32
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.