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KP Tissue Inc. (TSE:KPT)
TSX:KPT

KP Tissue (KPT) AI Stock Analysis

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TSE:KPT

KP Tissue

(TSX:KPT)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
C$11.00
▲(7.84% Upside)
The score is primarily held back by inconsistent profitability and uneven/unclear latest cash flow in the provided statements, despite a strong low-leverage balance sheet. Offsetting this, technicals show a clear uptrend with positive momentum, and the earnings call indicated strong recent operating performance and credible long-term capacity expansion plans. Valuation is mixed, with a high dividend yield but a relatively high P/E.
Positive Factors
Revenue Growth
Achieving record revenue reflects strong market demand and effective sales strategies, indicating a robust growth trajectory for the company.
Strong Balance Sheet
A strong balance sheet with no leverage enhances financial stability and provides flexibility for future investments and growth opportunities.
Market Share Expansion
Increasing market share in the facial tissue category strengthens competitive positioning and supports long-term revenue growth.
Negative Factors
Profitability Challenges
Ongoing profitability challenges can hinder reinvestment in growth initiatives and impact long-term financial health.
Tariff Exposure
Significant tariff exposure poses a risk to cost structures and pricing strategies, potentially affecting margins and profitability.
Decline in Consumer EBITDA Margin
A declining EBITDA margin in the consumer segment suggests pressure on cost management and pricing power, impacting overall profitability.

KP Tissue (KPT) vs. iShares MSCI Canada ETF (EWC)

KP Tissue Business Overview & Revenue Model

Company DescriptionKP Tissue Inc., through its interest in Kruger Products L.P., produces, distributes, markets, and sells a range of disposable tissue products in Canada and the United States. The company operates through two segments, Consumer and Away-From-Home. It offers bathroom and facial tissues, paper towels, and napkins, as well as manufactures private label tissue products. The company markets its products under the Cashmere, Purex, SpongeTowels, Scotties, White Swan, White Cloud, Chalet, Embassy, White Swan, and Metro brand names. The company sells its products to consumers through traditional retail channels, such as grocery stores, mass merchandisers, club and drug stores, convenience stores, and online retailers; and through distributors to businesses involved in commercial users in the property management, healthcare, food services, manufacturing, lodging industries, and public facilities. KP Tissue Inc. was incorporated in 2012 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyKP Tissue makes money through its equity interest in Kruger Products L.P., which generates revenue by manufacturing and distributing tissue products across North America. The company earns money by selling these products to major retailers, wholesalers, and commercial clients. Key revenue streams include sales from branded consumer products and private label offerings. Additionally, Kruger Products L.P. engages in strategic partnerships and has a robust distribution network that enhances its market reach, thereby contributing to its earnings.

KP Tissue Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in adjusted EBITDA and revenue, successful debt reduction, and recognition for sustainability efforts. However, the decrease in net income and higher operating costs were notable concerns. The announcement of a new tissue plant indicates positive future growth potential.
Q3-2025 Updates
Positive Updates
Strong Financial Performance
Adjusted EBITDA increased by 30.4% year-over-year to $85.7 million on revenue of $561.1 million. Revenue growth of nearly 8% was driven by higher sales volume, favorable selling prices, and a positive foreign exchange impact.
Consumer Business Growth
Consumer share gains in the paper towel and facial tissue categories were reported, with U.S. sales growing 8.8% year-over-year. Kruger Products branded market share in Canada showed strong growth in the paper towel category.
Successful Debt Reduction
Reduced net debt by $87.9 million, bringing the leverage ratio down to 3.4x from 4.0x in Q2 2025.
Recognition for Sustainability
Bonterra brand was named the most sustainable brand in Canada in 2025 by Kantar BrandZ, reflecting strong sustainability efforts.
New Tissue Plant Announcement
Announced the construction of a new state-of-the-art tissue plant in the Western United States, scheduled to start up in 2028, to enhance serving capabilities for the U.S. market.
Negative Updates
Decreased Net Income
Net income decreased to $14.6 million in Q3 2025 compared to $18 million in Q3 2024 due to an FX loss variation, higher income tax expenses, depreciation, and increased interest and other finance costs.
Higher Operating Costs
Adjusted EBITDA was partially offset by higher manufacturing overhead costs, elevated warehousing costs, and increased SG&A expenses.
Company Guidance
During the third quarter of fiscal 2025, KP Tissue reported robust financial performance, with adjusted EBITDA reaching $85.7 million, marking a year-over-year increase of 30.4%. This growth was supported by revenue of $561.1 million, which grew by nearly 8% due to higher sales volumes, favorable selling prices, and positive foreign exchange impacts. The company's consumer segment experienced a 9.1% revenue increase to $468.3 million, while the Away-From-Home segment saw a 1% rise to $92.8 million. Notably, U.S. sales surged by 8.8%, and Canadian revenue grew 6.8% year-over-year. Cost efficiencies were achieved through lower pulp prices and reduced freight expenses, though higher manufacturing overhead costs partially offset these gains. Looking ahead, KP Tissue anticipates maintaining strong financial results and announced plans for a new tissue plant in the Western U.S., expected to be operational by 2028, which will enhance their production capacity by approximately 75,000 metric tons annually.

KP Tissue Financial Statement Overview

Summary
KP Tissue's financial performance is mixed. The balance sheet is robust with no leverage, enhancing stability and scoring high. However, the income statement reveals profitability issues with historical losses, and cash flow analysis shows variability, indicating potential instability. The overall financial picture is cautiously optimistic but with significant challenges.
Income Statement
38
Negative
The income statement shows consistent challenges with profitability, as evidenced by negative EBIT in most periods. The company managed a positive net income in TTM (Trailing-Twelve-Months) but has faced historical losses. Revenue data is missing, making margin analysis impossible.
Balance Sheet
62
Positive
The balance sheet is strong with zero debt, reflected in a favorable debt-to-equity ratio. The equity ratio is high, indicating a stable financial structure. The company has maintained healthy stockholders' equity over the years.
Cash Flow
44
Neutral
Cash flow analysis shows variability, with operating cash flow improving in TTM (Trailing-Twelve-Months). Free cash flow was positive in the latest period, but historical fluctuations suggest potential instability in cash management. The operating cash flow to net income ratio indicates some operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit0.000.000.000.000.000.00
EBITDA76.09M264.78M238.61M115.99M153.43M197.84M
Net Income4.43M2.43M-4.94M-10.25M1.24M-1.95M
Balance Sheet
Total Assets70.52M71.31M70.61M81.71M80.72M71.31M
Cash, Cash Equivalents and Short-Term Investments0.000.000.000.000.000.00
Total Debt0.000.000.000.000.000.00
Total Liabilities1.80M1.80M2.25M7.68M4.85M4.99M
Stockholders Equity68.72M69.52M68.36M74.03M75.87M66.33M
Cash Flow
Free Cash Flow0.000.006.98M6.62M1.15M-2.44M
Operating Cash Flow0.000.006.98M6.62M1.15M-2.44M
Investing Cash Flow6.97M6.97M6.98M6.62M5.56M5.59M
Financing Cash Flow-5.23M-6.97M-6.98M-6.62M-5.56M-5.59M

KP Tissue Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price10.20
Price Trends
50DMA
10.08
Positive
100DMA
9.73
Positive
200DMA
9.11
Positive
Market Momentum
MACD
0.01
Positive
RSI
47.44
Neutral
STOCH
32.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KPT, the sentiment is Neutral. The current price of 10.2 is below the 20-day moving average (MA) of 10.31, above the 50-day MA of 10.08, and above the 200-day MA of 9.11, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KPT.

KP Tissue Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$410.78M14.3315.23%6.57%8.87%10.15%
73
Outperform
C$410.78M14.5415.23%6.34%8.87%10.15%
70
Outperform
C$245.80M11.068.25%4.71%-2.11%
68
Neutral
C$784.47M12.1614.63%5.99%6.57%8.61%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
C$102.16M26.245.55%7.04%-39.19%
58
Neutral
C$427.49M9.258.60%4.83%6.15%-36.76%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:KPT
KP Tissue
10.20
2.62
34.56%
TSE:ADW.A
Andrew Peller A NV
5.32
1.49
39.05%
TSE:CSW.A
Corby Spirit&Wine A
14.46
2.77
23.70%
TSE:CSW.B
Corby Spirit&Wn B NV
14.25
2.85
25.00%
TSE:HLF
High Liner Foods
14.97
0.35
2.39%
TSE:RSI
Rogers Sugar
6.12
0.79
14.82%

KP Tissue Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Kruger Products Secures $165 Million in Senior Unsecured Notes Offering
Positive
Dec 10, 2025

KP Tissue Inc. announced that Kruger Products Inc. has successfully closed a CDN $165 million offering of senior unsecured notes due in 2032. The proceeds from this offering will be used to repay existing borrowings and for general corporate purposes. Additionally, KPI’s syndicated credit agreement has been amended to increase its facility amount and add Kruger Products SB Inc. as a restricted credit party, which could enhance the company’s financial flexibility and operational capacity.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Private Placements and Financing
Kruger Products Inc. Announces $165 Million Senior Unsecured Notes Offering
Positive
Dec 4, 2025

KP Tissue Inc. announced that Kruger Products Inc. will issue and sell CDN $165 million in Senior Unsecured Notes due in 2032 through a private placement, with the offering expected to close on December 10, 2025. The proceeds from this offering will be used to repay borrowings under Kruger Products SB Inc.’s senior credit facilities and for general corporate purposes, potentially strengthening KPI’s financial position and operational flexibility.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Private Placements and Financing
Kruger Products Announces $165 Million Notes Offering to Enhance Credit Profile
Neutral
Nov 26, 2025

KP Tissue Inc. announced that Kruger Products Inc. plans to offer CAD $165 million in Senior Unsecured Notes through a private placement. The proceeds will be used to repay borrowings under Kruger Products SB Inc.’s senior credit facilities and for general corporate purposes, which is expected to improve the credit profile of the restricted group. The Notes will not be registered under U.S. or Canadian securities laws, and the offering is subject to market conditions.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
KP Tissue Reports Q3 Growth and Announces New Facility
Positive
Nov 13, 2025

KP Tissue Inc. reported a 7.7% increase in revenue for Q3 2025, reaching $561.1 million, driven by higher sales volumes and favorable pricing. The company also announced plans to build a new TAD tissue facility by 2028 to support its growth in ultra-premium products, reflecting its strategic focus on expanding market share and enhancing operational capacity.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
KP Tissue Reports Strong Q3 2025 Growth and Announces New Facility
Positive
Nov 13, 2025

KP Tissue Inc. reported a 7.7% increase in revenue to $561.1 million for Q3 2025, with Adjusted EBITDA rising by 30.4% to $85.7 million, driven by higher sales volumes and favorable pricing. Despite a decrease in net income due to foreign exchange losses and increased tax expenses, the company is focusing on long-term growth by announcing the construction of a new TAD tissue facility set to begin operations in 2028, aiming to meet the rising demand for ultra-premium products.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Dividends
KP Tissue Announces Quarterly Dividend and Reinvestment Plan
Neutral
Nov 13, 2025

KP Tissue Inc. announced a quarterly dividend of $0.18 per common share, payable on January 15, 2026, to shareholders of record as of December 31, 2025. This dividend declaration is linked to a corresponding distribution by Kruger Products Inc., in which KPT holds a 12.1% interest. Additionally, KPT offers a Dividend Reinvestment Plan (DRIP) for Canadian shareholders, allowing them to reinvest cash dividends into additional common shares, subject to specific conditions and eligibility requirements.

The most recent analyst rating on (TSE:KPT) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on KP Tissue stock, see the TSE:KPT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025