TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - NYSE:TPB - US90041L1052 - Common Stock
98.03 USD
+0.01 (+0.01%)
98.03 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. 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
TPB had positive earnings in the past year.
TPB had a positive operating cash flow in the past year.
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
TPB has a Return On Assets of 7.33%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
TPB has a better Return On Equity (19.98%) than 100.00% of its industry peers.
TPB has a Return On Invested Capital of 12.78%. This is in the better half of the industry: TPB outperforms 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 14.45%.
| 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.
TPB's Profit Margin has improved in the last couple of years.
The Operating Margin of TPB (26.40%) is better than 75.00% of its industry peers.
TPB's Operating Margin has improved in the last couple of years.
The Gross Margin of TPB (58.72%) is better than 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
The debt/assets ratio for TPB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.84 indicates that TPB is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.84, TPB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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 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'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 | 4.84 |
ROIC/WACC1.58
WACC8.09%
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.
TPB's Current ratio of 4.22 is amongst the best of the industry. TPB outperforms 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
TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.43%, which is quite good.
TPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.90% yearly.
Looking at the last year, TPB shows a decrease in Revenue. The Revenue has decreased by -6.49% in the last year.
The Revenue has been decreasing by -0.07% on average over the past years.
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 26.21 indicates a quite expensive valuation of 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.
When comparing the Price/Earnings ratio of TPB to the average of the S&P500 Index (27.54), we can say TPB is valued inline with the index average.
A Price/Forward Earnings ratio of 24.66 indicates a rather expensive valuation of TPB.
Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
TPB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 24.66 |
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.
TPB's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.79 | ||
| EV/EBITDA | 18.48 |
4.3 Compensation for Growth
TPB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.03
EPS Next 2Y5.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPB has a yearly dividend return of 0.31%, which is pretty low.
Compared to an average industry Dividend Yield of 3.86, TPB is paying slightly less dividend.
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 | 0.31% |
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 11.97% 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.
DP11.97%
EPS Next 2Y5.98%
EPS Next 3YN/A
98.03
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change5.83%
Ins Owners4.31%
Ins Owner Change-0.31%
Market Cap1.77B
Analysts80
Price Target109.91 (12.12%)
Short Float %7.12%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
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)0%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.21 | ||
| Fwd PE | 24.66 | ||
| P/S | 4.67 | ||
| P/FCF | 33.79 | ||
| P/OCF | 29.34 | ||
| P/B | 8.08 | ||
| P/tB | 240.47 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)3.74
EY3.82%
EPS(NY)3.98
Fwd EY4.06%
FCF(TTM)2.9
FCFY2.96%
OCF(TTM)3.34
OCFY3.41%
SpS20.99
BVpS12.13
TBVpS0.41
PEG (NY)N/A
PEG (5Y)2.03
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 | 4.84 |
F-Score6
WACC8.09%
ROIC/WACC1.58
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%