TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - NYSE:TPB - US90041L1052 - Common Stock
85.37 USD
-2.31 (-2.63%)
85.37 USD
0 (0%)
Overall TPB gets a fundamental rating of 5 out of 10. We evaluated TPB against 8 industry peers in the Tobacco industry. TPB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TPB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TPB was profitable.
TPB had a positive operating cash flow in the past year.
Each year in the past 5 years TPB has been profitable.
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 7.33%, TPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
TPB's Return On Equity of 19.98% is amongst the best of the industry. TPB outperforms 100.00% of its industry peers.
The Return On Invested Capital of TPB (12.78%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPB is in line with the industry average of 14.52%.
| 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
TPB has a Profit Margin of 11.55%. This is comparable to the rest of the industry: TPB outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of TPB has grown nicely.
TPB's Operating Margin of 26.40% is fine compared to the rest of the industry. TPB outperforms 75.00% of its industry peers.
TPB's Operating Margin has improved in the last couple of years.
TPB has a Gross Margin of 58.72%. This is in the better half of the industry: TPB outperforms 62.50% of its industry peers.
TPB's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPB is creating some value.
Compared to 1 year ago, TPB has more shares outstanding
TPB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TPB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.48 indicates that TPB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.48, TPB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
The Debt to FCF ratio of TPB is 5.61, which is a neutral value as it means it would take TPB, 5.61 years of fcf income to pay off all of its debts.
TPB has a better Debt to FCF ratio (5.61) than 62.50% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that TPB has dependencies on debt financing.
TPB has a Debt to Equity ratio of 1.34. This is in the lower half of the industry: TPB underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 4.48 |
ROIC/WACC1.43
WACC8.91%
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.
TPB has a Quick Ratio of 2.67. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
TPB has a better Quick ratio (2.67) than 87.50% of its industry peers.
| 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.
Measured over the past years, TPB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.90% on average per year.
The Revenue has decreased by -6.49% in the past year.
TPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.07% yearly.
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 5.98% yearly.
Based on estimates for the next years, TPB will show a quite strong growth in Revenue. The Revenue will grow by 11.75% on average per year.
EPS Next Y-1%
EPS Next 2Y5.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.72%
Revenue Next 2Y11.75%
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
A Price/Earnings ratio of 22.83 indicates a rather expensive valuation of TPB.
TPB's Price/Earnings is on the same level as the industry average.
TPB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.77.
With a Price/Forward Earnings ratio of 21.47, TPB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPB indicates a slightly more expensive valuation: TPB is more expensive than 75.00% of the companies listed in the same industry.
TPB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 21.47 |
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.
62.50% of the companies in the same industry are cheaper than TPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.43 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The decent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y5.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, TPB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.98, TPB is paying slightly less dividend.
With a Dividend Yield of 0.33, TPB pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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.
The dividend of TPB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP11.97%
EPS Next 2Y5.98%
EPS Next 3YN/A
85.37
-2.31 (-2.63%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change-0.06%
Ins Owners4.31%
Ins Owner Change-0.31%
Market Cap1.54B
Analysts80
Price Target109.91 (28.75%)
Short Float %7.08%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)0%
PT rev (3m)19.06%
EPS NQ rev (1m)-6.15%
EPS NQ rev (3m)-10.13%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 21.47 | ||
| P/S | 4.07 | ||
| P/FCF | 29.43 | ||
| P/OCF | 25.55 | ||
| P/B | 7.04 | ||
| P/tB | 209.42 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)3.74
EY4.38%
EPS(NY)3.98
Fwd EY4.66%
FCF(TTM)2.9
FCFY3.4%
OCF(TTM)3.34
OCFY3.91%
SpS20.99
BVpS12.13
TBVpS0.41
PEG (NY)N/A
PEG (5Y)1.77
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 | 4.48 |
F-Score6
WACC8.91%
ROIC/WACC1.43
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 Y-1%
EPS Next 2Y5.98%
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 Year14.72%
Revenue Next 2Y11.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.77%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year35.6%
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%