TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
120.33 USD
+2.65 (+2.25%)
120.33 USD
0 (0%)
Taking everything into account, TPB scores 5 out of 10 in our fundamental rating. TPB was compared to 8 industry peers in the Tobacco industry. While TPB has a great profitability rating, there are some minor concerns on its financial health. TPB is valied quite expensively at the moment, while it does show a decent growth rate.
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
- With a decent Return On Assets value of 7.05%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- The Return On Equity of TPB (15.23%) is better than 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 10.36%, 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 14.25%.
- The 3 year average ROIC (14.60%) for TPB is well above the current ROIC(10.36%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 15.23% | ||
| ROIC | 10.36% |
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
- TPB has a Profit Margin of 13.38%. This is in the better half of the industry: TPB outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of TPB has grown nicely.
- TPB has a better Operating Margin (26.28%) than 75.00% of its industry peers.
- TPB's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 60.99%, TPB is in the better half of 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 | 26.28% | ||
| PM (TTM) | 13.38% | ||
| GM | 60.99% |
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
- TPB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TPB has more shares outstanding
- Compared to 5 years ago, TPB has less shares outstanding
- Compared to 1 year ago, TPB has an improved debt to assets ratio.
2.2 Solvency
- TPB has an Altman-Z score of 5.32. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TPB (5.32) is better than 100.00% of its industry peers.
- The Debt to FCF ratio of TPB is 7.53, which is on the high side as it means it would take TPB, 7.53 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.53, TPB is doing worse than 62.50% of the companies in the same industry.
- TPB has a Debt/Equity ratio of 0.85. This is a neutral value indicating TPB is somewhat dependend on debt financing.
- TPB has a Debt to Equity ratio (0.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.17
WACC8.86%
2.3 Liquidity
- A Current Ratio of 5.56 indicates that TPB has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 5.56, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- TPB has a Quick Ratio of 3.98. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of TPB (3.98) is better than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.56 | ||
| Quick Ratio | 3.98 |
3. Growth
3.1 Past
- TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.01%, which is quite good.
- The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
- The Revenue has decreased by -4.11% in the past year.
- The Revenue has been decreasing by -0.07% on average over the past years.
EPS 1Y (TTM)17.01%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%20.69%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%12.65%
3.2 Future
- The Earnings Per Share is expected to grow by 8.51% on average over the next years. This is quite good.
- The Revenue is expected to grow by 14.97% on average over the next years. This is quite good.
EPS Next Y10.42%
EPS Next 2Y8.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.01%
Revenue Next 2Y14.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 30.70, which means the current valuation is very expensive for TPB.
- TPB's Price/Earnings ratio is a bit more expensive when compared to the industry. TPB is more expensive than 62.50% of the companies in the same industry.
- TPB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- TPB is valuated quite expensively with a Price/Forward Earnings ratio of 28.87.
- Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
- TPB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
- TPB's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, TPB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.89 | ||
| EV/EBITDA | 22.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)2.38
EPS Next 2Y8.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.25%, TPB is not a good candidate for dividend investing.
- TPB's Dividend Yield is slightly below the industry average, which is at 3.36.
- With a Dividend Yield of 0.25, TPB pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
- The dividend of TPB is nicely growing with an annual growth rate of 9.10%!
- TPB has been paying a dividend for over 5 years, so it has already some track record.
- TPB has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.1%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
- TPB pays out 10.21% of its income as dividend. This is a sustainable payout ratio.
- TPB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.21%
EPS Next 2Y8.51%
EPS Next 3YN/A
TURNING POINT BRANDS INC / TPB FAQ
What is the fundamental rating for TPB stock?
ChartMill assigns a fundamental rating of 5 / 10 to TPB.
Can you provide the valuation status for TURNING POINT BRANDS INC?
ChartMill assigns a valuation rating of 2 / 10 to TURNING POINT BRANDS INC (TPB). This can be considered as Overvalued.
How profitable is TURNING POINT BRANDS INC (TPB) stock?
TURNING POINT BRANDS INC (TPB) has a profitability rating of 8 / 10.
How financially healthy is TURNING POINT BRANDS INC?
The financial health rating of TURNING POINT BRANDS INC (TPB) is 6 / 10.
How sustainable is the dividend of TURNING POINT BRANDS INC (TPB) stock?
The dividend rating of TURNING POINT BRANDS INC (TPB) is 4 / 10 and the dividend payout ratio is 10.21%.