TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - NYSE:TPB - US90041L1052 - Common Stock
97.93 USD
-4.05 (-3.97%)
97.93 USD
0 (0%)
TPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. TPB scores excellent on profitability, but there are some minor concerns on its financial health. TPB is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years TPB had a positive operating cash flow.
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.
Looking at the Return On Equity, with a value of 15.23%, TPB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TPB has a Return On Invested Capital of 10.36%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
TPB had an Average Return On Invested Capital over the past 3 years of 14.60%. This is in line with the industry average of 14.16%.
The last Return On Invested Capital (10.36%) for TPB is well below the 3 year average (14.60%), which needs to be investigated, but indicates that TPB had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 13.38%, TPB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of TPB has grown nicely.
With a decent Operating Margin value of 26.28%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TPB's Operating Margin has improved in the last couple of years.
The Gross Margin of TPB (60.99%) 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 | 26.28% | ||
| 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.
The number of shares outstanding for TPB has been increased compared to 1 year ago.
TPB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TPB has been reduced compared to a year ago.
2.2 Solvency
TPB has an Altman-Z score of 4.64. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
TPB has a Altman-Z score of 4.64. This is amongst the best in the industry. TPB outperforms 87.50% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.53, TPB is doing worse than 62.50% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that TPB is somewhat dependend on debt financing.
The Debt to Equity ratio of TPB (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 4.64 |
ROIC/WACC1.18
WACC8.81%
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.
TPB has a better Current ratio (5.56) than 87.50% of its industry peers.
A Quick Ratio of 3.98 indicates that TPB has no problem at all paying 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
The Earnings Per Share has grown by an nice 17.01% over the past year.
TPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.90% yearly.
TPB shows a decrease in Revenue. In the last year, the revenue decreased by -4.11%.
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
TPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.49% yearly.
Based on estimates for the next years, TPB will show a quite strong growth in Revenue. The Revenue will grow by 11.37% on average per year.
EPS Next Y0.29%
EPS Next 2Y4.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.37%
Revenue Next 2Y11.37%
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.
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
TPB is valuated rather expensively with a Price/Earnings ratio of 24.98.
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.
The average S&P500 Price/Earnings ratio is at 25.07. TPB is around the same levels.
Based on the Price/Forward Earnings ratio of 25.34, the valuation of TPB can be described as expensive.
Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, TPB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 25.34 |
4.2 Price Multiples
TPB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TPB is cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.29 | ||
| EV/EBITDA | 17.83 |
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 excellent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)87.13
PEG (5Y)1.94
EPS Next 2Y4.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.31%, TPB is not a good candidate for dividend investing.
TPB's Dividend Yield is slightly below the industry average, which is at 4.63.
Compared to an average S&P500 Dividend Yield of 2.44, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
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 10.21% of its income as dividend. This is a sustainable payout ratio.
The dividend of TPB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.21%
EPS Next 2Y4.49%
EPS Next 3YN/A
97.93
-4.05 (-3.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change13.33%
Ins Owners4.31%
Ins Owner Change-7.6%
Market Cap1.76B
Revenue(TTM)391.52M
Net Income(TTM)52.38M
Analysts80
Price Target109.91 (12.23%)
Short Float %10.92%
Short Ratio4.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP10.21%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)0%
PT rev (3m)19.06%
EPS NQ rev (1m)4.15%
EPS NQ rev (3m)17.02%
EPS NY rev (1m)1.3%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)7.51%
Revenue NQ rev (3m)6.86%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 25.34 | ||
| P/S | 4.51 | ||
| P/FCF | 45.29 | ||
| P/OCF | 35.11 | ||
| P/B | 5.13 | ||
| P/tB | 13.24 | ||
| EV/EBITDA | 17.83 |
EPS(TTM)3.92
EY4%
EPS(NY)3.86
Fwd EY3.95%
FCF(TTM)2.16
FCFY2.21%
OCF(TTM)2.79
OCFY2.85%
SpS21.73
BVpS19.09
TBVpS7.39
PEG (NY)87.13
PEG (5Y)1.94
Graham Number41.03
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 | 4.64 |
F-Score6
WACC8.81%
ROIC/WACC1.18
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 Y0.29%
EPS Next 2Y4.49%
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 Year14.37%
Revenue Next 2Y11.37%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.08%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year35.6%
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.
What is the valuation status for TPB stock?
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.
Can you provide the PE and PB ratios for TPB stock?
The Price/Earnings (PE) ratio for TURNING POINT BRANDS INC (TPB) is 24.98 and the Price/Book (PB) ratio is 5.13.
What is the earnings growth outlook for TURNING POINT BRANDS INC?
The Earnings per Share (EPS) of TURNING POINT BRANDS INC (TPB) is expected to grow by 0.29% in the next year.