OTCPK:KPTS.F

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 Analysis

Fair value 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: KPTS.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KPTS.F

-4.6%

US Household Products

-7.6%

US Market


1 Year Return

10.1%

KPTS.F

19.7%

US Household Products

10.2%

US Market

Return vs Industry: KPTS.F underperformed the US Household Products industry which returned 19.7% over the past year.

Return vs Market: KPTS.F matched the US Market which returned 10.2% over the past year.


Shareholder returns

KPTS.FIndustryMarket
7 Day0%-4.6%-7.6%
30 Day4.8%-3.8%-4.5%
90 Day4.5%-0.6%-0.6%
1 Year19.3%10.1%22.7%19.7%12.5%10.2%
3 Yearn/a41.3%29.7%37.1%28.3%
5 Yearn/a66.7%43.6%60.8%43.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KPTS.F ($7.67) is trading below our estimate of fair value ($134.9)

Significantly Below Fair Value: KPTS.F is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: KPTS.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KPTS.F is good value based on its PB Ratio (1.4x) compared to the US Household Products industry average (3.7x).


Next Steps

Future Growth

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

65.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KPTS.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

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

High Growth Revenue: Insufficient data to determine if KPTS.F'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 KPTS.F'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: KPTS.F is currently unprofitable.

Growing Profit Margin: KPTS.F is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: KPTS.F is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (-14%).


Return on Equity

High ROE: KPTS.F 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: KPTS.F's short term assets (CA$2.2M) exceed its short term liabilities (CA$2.1M).

Long Term Liabilities: KPTS.F's short term assets (CA$2.2M) do not cover its long term liabilities (CA$3.2M).


Debt to Equity History and Analysis

Debt Level: KPTS.F is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if KPTS.F'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 KPTS.F has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if KPTS.F 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?

6.51%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%1.5%markettop25%4.0%industryaverage2.4%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: KPTS.F's dividend (6.51%) is higher than the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: KPTS.F's dividend (6.51%) is in the top 25% of dividend payers in the US market (3.96%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: KPTS.F's dividends in 3 years are not forecast to be well covered by earnings (119.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Dino Bianco (57yo)

1.9yrs

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 ($USD1.08M) is above average for companies of similar size in the US market ($USD529.87K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dino Bianco
Chief Executive Officer1.9yrsCA$1.44m0.043% CA$34.9k
Mark Holbrook
Chief Financial Officer0yrsCA$664.19k0.030% CA$23.8k
Michel Manseau
Senior VP & GM of Consumer Business Canada - Kruger Products LP12.8yrsCA$690.46k0.031% CA$24.9k
Gordon Goss
Senior VP and GM of Consumer Business USA & Mexico - Kruger Products LP9yrsCA$794.18kno data
Marc Fitzgerald
Corporate Vice President of Technology & Product Development - Kruger Products LP6.6yrsno datano data
Mike Baldesarra
Director of Investor Relations8.1yrsno datano data
François Paroyan
General Counsel & Corporate Secretary0yrsno datano data
Rob Latter
Senior VP & GM of Away from Home Business - Kruger Products LP1.8yrsCA$649.76kno data
Nancy Marcus
Chief Marketing Officer of Kruger Products L.P.1.8yrsCA$606.28kno data

6.6yrs

Average Tenure

Experienced Management: KPTS.F's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Korenberg
Independent Chairman0yrsCA$88.75k0.21% CA$166.3k
Joseph Kruger
Chairman of Kruger Products G.P.0yrsno data0.11% CA$87.3k
Michel Letellier
Independent Director7.3yrsCA$75.00k0.044% CA$35.6k
James Hardy
Independent Director5.7yrsCA$88.75k0.0041% CA$3.3k
David Angel
Director of Kruger Products G.P0yrsno data0.15% CA$119.7k
Gene Kruger
Director of Kruger Products G.P.2.5yrsno data0.12% CA$98.1k
Louise Denys Wendling
Director1.8yrsCA$39.03kno data

4.1yrs

Average Tenure

Experienced Board: KPTS.F's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: KP Tissue Inc.
  • Ticker: KPTS.F
  • Exchange: OTCPK
  • Founded: 2012
  • Industry: Household Products
  • Sector: Household
  • Market Cap: CA$106.847m
  • Listing Market Cap: CA$80.322m
  • Shares outstanding: 9.66m
  • 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: Consumer Products, Away-From-Home, and Other. It offers bathroom and facial tissues, paper towels, and paper towels and napkins, as well as disposable wiping products and washroom dispensing systems. The company markets its products under the Cashmere, Purex, SpongeTowels, Scotties, White Swan, and White Cloud brand names. It sells its products to end-consumers through traditional retail channels, such as grocery stores, mass merchandisers, club and drug stores, and convenience stores; and commercial users in property management, healthcare, food services, manufacturing, education, and lodging industries, as well as in public facilities. KP Tissue Inc. was founded in 2012 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:47
End of Day Share Price2020/01/30 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.