TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
109.97 USD
+7.1 (+6.9%)
110.95 USD
+0.98 (+0.89%)
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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TPB is valued expensive at the moment.
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.
Each year in the past 5 years TPB has been profitable.
TPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TPB's Return On Assets of 7.05% is fine compared to the rest of the industry. TPB outperforms 75.00% of its industry peers.
TPB has a better Return On Equity (15.23%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.36%, TPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TPB 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
The Profit Margin of TPB (13.38%) is better than 62.50% of its industry peers.
TPB's Profit Margin has improved in the last couple of years.
TPB's Operating Margin of 26.28% 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.
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.
TPB's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPB is still creating some 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
TPB has an Altman-Z score of 4.82. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.82, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 7.53, TPB is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.85 indicates that TPB is somewhat dependend on debt financing.
TPB has a Debt to Equity ratio (0.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.25
WACC8.31%
2.3 Liquidity
TPB has a Current Ratio of 5.56. This indicates that TPB is financially healthy and has no problem in meeting 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.
Looking at the Quick ratio, with a value of 3.98, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| 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.
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 -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
Based on estimates for the next years, TPB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
The Revenue is expected to grow by 14.54% 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 Year18.97%
Revenue Next 2Y14.54%
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
Based on the Price/Earnings ratio of 28.05, the valuation of TPB can be described as expensive.
Based on the Price/Earnings ratio, TPB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.19. TPB is around the same levels.
With a Price/Forward Earnings ratio of 26.38, TPB can be considered very expensive at the moment.
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 62.50% of the companies listed in the same industry.
TPB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 26.38 |
4.2 Price Multiples
TPB's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 53.82 | ||
| EV/EBITDA | 18.98 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)2.17
EPS Next 2Y8.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPB has a yearly dividend return of 0.29%, which is pretty low.
TPB's Dividend Yield is slightly below the industry average, which is at 3.50.
Compared to an average S&P500 Dividend Yield of 1.90, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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.
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
109.97
+7.1 (+6.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners99.66%
Inst Owner Change0%
Ins Owners3.86%
Ins Owner Change-0.47%
Market Cap2.10B
Revenue(TTM)391.52M
Net Income(TTM)52.38M
Analysts80
Price Target121.13 (10.15%)
Short Float %7.88%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP10.21%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.44%
Min EPS beat(2)19.05%
Max EPS beat(2)27.82%
EPS beat(4)4
Avg EPS beat(4)17.25%
Min EPS beat(4)6.63%
Max EPS beat(4)27.82%
EPS beat(8)8
Avg EPS beat(8)17.32%
EPS beat(12)12
Avg EPS beat(12)20.16%
EPS beat(16)15
Avg EPS beat(16)21.62%
Revenue beat(2)2
Avg Revenue beat(2)8%
Min Revenue beat(2)6.86%
Max Revenue beat(2)9.15%
Revenue beat(4)3
Avg Revenue beat(4)5.9%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)10.06%
Revenue beat(8)7
Avg Revenue beat(8)6.49%
Revenue beat(12)10
Avg Revenue beat(12)4.83%
Revenue beat(16)12
Avg Revenue beat(16)3.44%
PT rev (1m)2.15%
PT rev (3m)10.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.76%
EPS NY rev (1m)0%
EPS NY rev (3m)11.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.05 | ||
| Fwd PE | 26.38 | ||
| P/S | 5.36 | ||
| P/FCF | 53.82 | ||
| P/OCF | 41.73 | ||
| P/B | 6.1 | ||
| P/tB | 15.74 | ||
| EV/EBITDA | 18.98 |
EPS(TTM)3.92
EY3.56%
EPS(NY)4.17
Fwd EY3.79%
FCF(TTM)2.04
FCFY1.86%
OCF(TTM)2.64
OCFY2.4%
SpS20.53
BVpS18.04
TBVpS6.99
PEG (NY)2.69
PEG (5Y)2.17
Graham Number39.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 15.23% | ||
| ROCE | 15.32% | ||
| ROIC | 10.36% | ||
| ROICexc | 14.8% | ||
| ROICexgc | 26.8% | ||
| OM | 26.28% | ||
| PM (TTM) | 13.38% | ||
| GM | 60.99% | ||
| FCFM | 9.95% |
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%
ROICexgc growth 3Y-5.27%
ROICexgc 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 211.44% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 14.12 | ||
| Cash Conversion | 46.44% | ||
| Profit Quality | 74.4% | ||
| Current Ratio | 5.56 | ||
| Quick Ratio | 3.98 | ||
| Altman-Z | 4.82 |
F-Score6
WACC8.31%
ROIC/WACC1.25
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)17.01%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%20.69%
EPS Next Y10.42%
EPS Next 2Y8.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%12.65%
Revenue Next Year18.97%
Revenue Next 2Y14.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.08%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year41.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.9%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y-6.74%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%
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%.