TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
NYSE:TPB - New York Stock Exchange, Inc. - US90041L1052 - Common Stock - Currency: USD
TPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. TPB has an excellent profitability rating, but there are some minor concerns on its financial health. TPB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TPB was profitable.
TPB had a positive operating cash flow in the past year.
TPB had positive earnings in each of the past 5 years.
TPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.47%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TPB has a better Return On Equity (21.13%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.66%, TPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TPB is in line with the industry average of 14.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 21.13% | ||
| ROIC | 12.66% |
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 (11.40%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TPB has grown nicely.
TPB has a Operating Margin of 25.60%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
TPB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.55%, 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 | 25.6% | ||
| PM (TTM) | 11.4% | ||
| GM | 56.55% |
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 well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TPB has been increased compared to 1 year ago.
The number of shares outstanding for TPB has been reduced compared to 5 years ago.
TPB has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.23 indicates that TPB is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.23, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
TPB has a debt to FCF ratio of 5.29. This is a neutral value as TPB would need 5.29 years to pay back of all of its debts.
TPB's Debt to FCF ratio of 5.29 is on the low side compared to the rest of the industry. TPB is outperformed by 62.50% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that TPB has dependencies on debt financing.
TPB has a Debt to Equity ratio of 1.47. This is in the lower half of the industry: TPB underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 4.23 |
ROIC/WACC1.57
WACC8.08%
2.3 Liquidity
A Current Ratio of 4.42 indicates that TPB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.42, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
TPB has a Quick Ratio of 2.64. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.64, TPB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.42 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.24% over the past year.
The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
Looking at the last year, TPB shows a decrease in Revenue. The Revenue has decreased by -7.83% in the last year.
The Revenue has been decreasing by -0.07% on average over the past years.
EPS 1Y (TTM)16.24%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%13.75%
Revenue 1Y (TTM)-7.83%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%9.66%
3.2 Future
Based on estimates for the next years, TPB will show a small growth in Earnings Per Share. The EPS will grow by 3.92% on average per year.
Based on estimates for the next years, TPB will show a quite strong growth in Revenue. The Revenue will grow by 10.15% on average per year.
EPS Next Y0.43%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.11%
Revenue Next 2Y10.15%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.87, which indicates a rather expensive current valuation of TPB.
TPB's Price/Earnings ratio is a bit cheaper when compared to the industry. TPB is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. TPB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.92, TPB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPB indicates a somewhat cheap valuation: TPB is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. TPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPB indicates a somewhat cheap valuation: TPB is cheaper than 75.00% of the companies listed in the same industry.
TPB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.61 | ||
| EV/EBITDA | 15.25 |
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)48.6
PEG (5Y)1.62
EPS Next 2Y3.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPB has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 3.80, TPB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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
TPB pays out 12.18% 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.
DP12.18%
EPS Next 2Y3.92%
EPS Next 3YN/A
NYSE:TPB (7/15/2025, 12:45:26 PM)
76.16
+1.55 (+2.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners87.73%
Inst Owner Change-0.34%
Ins Owners4.48%
Ins Owner Change0.62%
Market Cap1.36B
Analysts82.5
Price Target92.31 (21.21%)
Short Float %6.48%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP12.18%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.07%
Min EPS beat(2)6.63%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)14.61%
Min EPS beat(4)6.63%
Max EPS beat(4)18.81%
EPS beat(8)8
Avg EPS beat(8)18.58%
EPS beat(12)11
Avg EPS beat(12)17.52%
EPS beat(16)15
Avg EPS beat(16)20.58%
Revenue beat(2)1
Avg Revenue beat(2)3.8%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)10.06%
Revenue beat(4)3
Avg Revenue beat(4)5.8%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)11.75%
Revenue beat(8)6
Avg Revenue beat(8)4.09%
Revenue beat(12)9
Avg Revenue beat(12)3.23%
Revenue beat(16)11
Avg Revenue beat(16)3.11%
PT rev (1m)0%
PT rev (3m)16.77%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)2.03%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 19.92 | ||
| P/S | 3.68 | ||
| P/FCF | 24.61 | ||
| P/OCF | 22.05 | ||
| P/B | 6.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.25 |
EPS(TTM)3.65
EY4.79%
EPS(NY)3.82
Fwd EY5.02%
FCF(TTM)3.09
FCFY4.06%
OCF(TTM)3.45
OCFY4.54%
SpS20.67
BVpS11.16
TBVpS-0.52
PEG (NY)48.6
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 21.13% | ||
| ROCE | 18.72% | ||
| ROIC | 12.66% | ||
| ROICexc | 15.77% | ||
| ROICexgc | 32.48% | ||
| OM | 25.6% | ||
| PM (TTM) | 11.4% | ||
| GM | 56.55% | ||
| FCFM | 14.97% |
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-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.29 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 115.97% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.66% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 4.42 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 4.23 |
F-Score8
WACC8.08%
ROIC/WACC1.57
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)16.24%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%13.75%
EPS Next Y0.43%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.83%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%9.66%
Revenue Next Year11.11%
Revenue Next 2Y10.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.86%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year33.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y119.19%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y89.61%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%