TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
NYSE:TPB - US90041L1052 - Common Stock
100.9 USD
+2.08 (+2.1%)
100.9 USD
0 (0%)
TPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. Both the health and profitability get an excellent rating, making TPB a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, TPB is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
TPB had positive earnings in the past year.
In the past year TPB had a positive cash flow from operations.
TPB had positive earnings in each of the past 5 years.
Each year in the past 5 years TPB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.33%, TPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Return On Equity of TPB (19.98%) is better than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 12.78%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TPB had an Average Return On Invested Capital over the past 3 years of 14.60%. This is in line with the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 19.98% | ||
| ROIC | 12.78% |
ROA(3y)5.62%
ROA(5y)6.64%
ROE(3y)19.02%
ROE(5y)26.08%
ROIC(3y)14.6%
ROIC(5y)13.74%
1.3 Margins
With a Profit Margin value of 11.55%, TPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TPB has grown nicely.
The Operating Margin of TPB (26.40%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of TPB has grown nicely.
With a decent Gross Margin value of 58.72%, TPB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of TPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.4% | ||
| PM (TTM) | 11.55% | ||
| GM | 58.72% |
OM growth 3Y3.56%
OM growth 5Y12.4%
PM growth 3Y-1.91%
PM growth 5Y19.79%
GM growth 3Y4.56%
GM growth 5Y8.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPB is creating value.
The number of shares outstanding for TPB has been increased compared to 1 year ago.
Compared to 5 years ago, TPB has less shares outstanding
The debt/assets ratio for TPB has been reduced compared to a year ago.
2.2 Solvency
TPB has an Altman-Z score of 4.93. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
TPB has a better Altman-Z score (4.93) than 87.50% of its industry peers.
TPB has a debt to FCF ratio of 5.61. This is a neutral value as TPB would need 5.61 years to pay back of all of its debts.
TPB's Debt to FCF ratio of 5.61 is fine compared to the rest of the industry. TPB outperforms 62.50% of its industry peers.
TPB has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
TPB's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. TPB is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.59
WACC8.02%
2.3 Liquidity
TPB has a Current Ratio of 4.22. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TPB (4.22) is better than 87.50% of its industry peers.
A Quick Ratio of 2.67 indicates that TPB has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.67, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.43% over the past year.
TPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.90% yearly.
The Revenue has decreased by -6.49% in the past year.
Measured over the past years, TPB shows a decrease in Revenue. The Revenue has been decreasing by -0.07% on average per year.
EPS 1Y (TTM)15.43%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%10.11%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%7.48%
3.2 Future
TPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
TPB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.99% yearly.
EPS Next Y1.14%
EPS Next 2Y7.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.04%
Revenue Next 2Y11.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.98, which means the current valuation is very expensive for TPB.
62.50% of the companies in the same industry are cheaper than TPB, based on the Price/Earnings ratio.
TPB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
TPB is valuated rather expensively with a Price/Forward Earnings ratio of 24.55.
75.00% of the companies in the same industry are cheaper than TPB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. TPB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 24.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPB is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.78 | ||
| EV/EBITDA | 18.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)23.61
PEG (5Y)2.09
EPS Next 2Y7.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, TPB is not a good candidate for dividend investing.
TPB's Dividend Yield is slightly below the industry average, which is at 3.74.
Compared to an average S&P500 Dividend Yield of 2.41, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
On average, the dividend of TPB grows each year by 9.10%, which is quite nice.
TPB has been paying a dividend for over 5 years, so it has already some track record.
As TPB did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.1%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
11.97% of the earnings are spent on dividend by TPB. This is a low number and sustainable payout ratio.
TPB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.97%
EPS Next 2Y7.76%
EPS Next 3YN/A
100.9
+2.08 (+2.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner Change5.83%
Ins Owners4.34%
Ins Owner Change0.62%
Market Cap1.82B
Analysts80
Price Target109.91 (8.93%)
Short Float %8.17%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP11.97%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.28%
Min EPS beat(2)15.51%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)15%
Min EPS beat(4)6.63%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)16.89%
EPS beat(12)12
Avg EPS beat(12)19.46%
EPS beat(16)15
Avg EPS beat(16)20.02%
Revenue beat(2)2
Avg Revenue beat(2)9.6%
Min Revenue beat(2)9.15%
Max Revenue beat(2)10.06%
Revenue beat(4)3
Avg Revenue beat(4)5.14%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)10.06%
Revenue beat(8)6
Avg Revenue beat(8)5.19%
Revenue beat(12)10
Avg Revenue beat(12)4.3%
Revenue beat(16)11
Avg Revenue beat(16)2.79%
PT rev (1m)19.06%
PT rev (3m)19.06%
EPS NQ rev (1m)-4.24%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)0.71%
EPS NY rev (3m)2.75%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)9.44%
Revenue NY rev (1m)3.54%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 24.55 | ||
| P/S | 4.81 | ||
| P/FCF | 34.78 | ||
| P/OCF | 30.2 | ||
| P/B | 8.32 | ||
| P/tB | 247.51 | ||
| EV/EBITDA | 18.97 |
EPS(TTM)3.74
EY3.71%
EPS(NY)4.11
Fwd EY4.07%
FCF(TTM)2.9
FCFY2.88%
OCF(TTM)3.34
OCFY3.31%
SpS20.99
BVpS12.13
TBVpS0.41
PEG (NY)23.61
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 19.98% | ||
| ROCE | 18.9% | ||
| ROIC | 12.78% | ||
| ROICexc | 16.14% | ||
| ROICexgc | 32.6% | ||
| OM | 26.4% | ||
| PM (TTM) | 11.55% | ||
| GM | 58.72% | ||
| FCFM | 13.82% |
ROA(3y)5.62%
ROA(5y)6.64%
ROE(3y)19.02%
ROE(5y)26.08%
ROIC(3y)14.6%
ROIC(5y)13.74%
ROICexc(3y)18.04%
ROICexc(5y)16.79%
ROICexgc(3y)39.88%
ROICexgc(5y)38.44%
ROCE(3y)21.59%
ROCE(5y)20.32%
ROICexcg growth 3Y-5.27%
ROICexcg growth 5Y-0.15%
ROICexc growth 3Y-1.1%
ROICexc growth 5Y5.59%
OM growth 3Y3.56%
OM growth 5Y12.4%
PM growth 3Y-1.91%
PM growth 5Y19.79%
GM growth 3Y4.56%
GM growth 5Y8.09%
F-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 139.51% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 13.77 | ||
| Cash Conversion | 57.06% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 4.93 |
F-Score6
WACC8.02%
ROIC/WACC1.59
Cap/Depr(3y)105.5%
Cap/Depr(5y)112.31%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.56%
Profit Quality(3y)170.18%
Profit Quality(5y)145.59%
High Growth Momentum
Growth
EPS 1Y (TTM)15.43%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%10.11%
EPS Next Y1.14%
EPS Next 2Y7.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%7.48%
Revenue Next Year15.04%
Revenue Next 2Y11.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.77%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year32.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.49%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y18.88%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%