TURNING POINT BRANDS INC (TPB)
US90041L1052 - Common Stock
TPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Tobacco industry. TPB scores excellent on profitability, but there are some minor concerns on its financial health. TPB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TPB was profitable.
In the past year TPB had a positive cash flow from operations.
TPB had positive earnings in each of the past 5 years.
In the past 5 years TPB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.75%, TPB is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
With an excellent Return On Equity value of 25.44%, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of TPB (13.58%) is better than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPB is significantly below the industry average of 21.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 25.44% | ||
| ROIC | 13.58% |
ROA(3y)5.81%
ROA(5y)5.75%
ROE(3y)25.17%
ROE(5y)24.88%
ROIC(3y)13.66%
ROIC(5y)12.37%
1.3 Margins
TPB has a Profit Margin of 9.47%. This is comparable to the rest of the industry: TPB outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of TPB has grown nicely.
With a Operating Margin value of 23.94%, TPB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TPB has grown nicely.
Looking at the Gross Margin, with a value of 50.13%, TPB is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
TPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.94% | ||
| PM (TTM) | 9.47% | ||
| GM | 50.13% |
OM growth 3Y5.71%
OM growth 5Y10.51%
PM growth 3Y0.2%
PM growth 5Y4.52%
GM growth 3Y2.25%
GM growth 5Y3.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPB is creating value.
TPB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TPB has been reduced compared to 5 years ago.
Compared to 1 year ago, TPB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that TPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
TPB has a worse Altman-Z score (2.76) than 60.00% of its industry peers.
TPB has a debt to FCF ratio of 6.01. This is a slightly negative value and a sign of low solvency as TPB would need 6.01 years to pay back of all of its debts.
The Debt to FCF ratio of TPB (6.01) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.04 is on the high side and indicates that TPB has dependencies on debt financing.
TPB has a Debt to Equity ratio (2.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | 6.01 | ||
| Altman-Z | 2.76 |
ROIC/WACC2.03
WACC6.68%
2.3 Liquidity
A Current Ratio of 2.67 indicates that TPB has no problem at all paying its short term obligations.
TPB has a better Current ratio (2.67) than 70.00% of its industry peers.
TPB has a Quick Ratio of 1.68. This is a normal value and indicates that TPB is financially healthy and should not expect problems in meeting its short term obligations.
TPB's Quick ratio of 1.68 is fine compared to the rest of the industry. TPB outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.02%, which is quite good.
Measured over the past years, TPB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.95% on average per year.
The Revenue has decreased by -2.31% in the past year.
Measured over the past years, TPB shows a small growth in Revenue. The Revenue has been growing by 4.03% on average per year.
EPS 1Y (TTM)15.02%
EPS 3Y1.75%
EPS 5Y12.95%
EPS growth Q2Q29.03%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y0.02%
Revenue growth 5Y4.03%
Revenue growth Q2Q-3.86%
3.2 Future
TPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.33% yearly.
TPB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.07% yearly.
EPS Next Y2.36%
EPS Next 2Y4.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.97%
Revenue Next 2Y-0.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.81, which indicates a very decent valuation of TPB.
TPB's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.15. TPB is valued rather cheaply when compared to this.
TPB is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
Based on the Price/Forward Earnings ratio, TPB is valued a bit cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.20. TPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than TPB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TPB is valued a bit cheaper than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TPB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)0.83
EPS Next 2Y4.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, TPB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.49, TPB has a dividend in line with its industry peers.
With a Dividend Yield of 0.83, TPB pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of TPB grows each year by 16.46%, which is quite nice.
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)16.46%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
11.71% 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.
DP11.71%
EPS Next 2Y4.33%
EPS Next 3YN/A
TURNING POINT BRANDS INC
NYSE:TPB (5/17/2024, 7:04:00 PM)
After market: 33.94 0 (0%)33.94
+0.2 (+0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap600.06M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | 10.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.57
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.75% | ||
| ROE | 25.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.94% | ||
| PM (TTM) | 9.47% | ||
| GM | 50.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.67 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.02%
EPS 3Y1.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y0.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y