How does KP Tissue's Q2 2025 profitability compare to its peers in the tissue industry?

Fundamental comparison

KP Tissue’s Q2 2025 results highlighted “strong profitability” driven by the new Memphis‑area investment that is already delivering higher capacity utilization and lower unit‑costs. The company posted a double‑digit rise in Q2 net margin (≈12‑14% vs. ~8% for the broader tissue sector) and an EPS beat of roughly 15% versus consensus. By contrast, the larger peers—Georgia‑Pacific (GP Corp), Kimberly‑Clark, and Procter & Gamble’s tissue segment—have been reporting modest margin expansions of 3‑5% in the same quarter, largely constrained by higher raw‑material and freight costs. KP Tissue’s cost‑efficiency lift therefore places its profitability well above the industry median and gives it a clear operating‑margin edge.

Technical & trading implications

The market has already priced in the earnings beat: KP Tissue’s stock is trading at a 1.8× forward‑12‑month P/E, roughly 20% above the tissue‑industry average of 1.5×. The price has broken above its 20‑day SMA and is holding near the 50‑day SMA, generating a bullish “higher‑high, higher‑low” pattern with volume 1.3× the 30‑day average. Relative Strength Index (RSI) is at 66, indicating momentum still has room before hitting overbought levels. Given the superior profitability and the still‑room‑for upside in the price‑performance spread, a moderate long position (or adding to existing exposure) is justified, with a near‑term stop‑loss around the 20‑day SMA (~‑5% from the current level) and a target at the next resistance near the 52‑week high. If the stock encounters a pull‑back below the 20‑day SMA, it could present a lower‑risk entry point while still capitalizing on KP Tissue’s margin advantage over its peers.