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TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis

NYSE:TPB - New York Stock Exchange, Inc. - US90041L1052 - Common Stock

58.08  +0.5 (+0.87%)

After market: 58.08 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TPB. 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year TPB was profitable.
TPB had a positive operating cash flow in the past year.
In the past 5 years TPB has always been profitable.
TPB had a positive operating cash flow in each of the past 5 years.
TPB Yearly Net Income VS EBIT VS OCF VS FCFTPB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

1.2 Ratios

With a decent Return On Assets value of 9.73%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Equity value of 25.58%, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TPB's Return On Invested Capital of 13.94% is fine compared to the rest of the industry. TPB outperforms 62.50% of its industry peers.
TPB had an Average Return On Invested Capital over the past 3 years of 13.66%. This is significantly below the industry average of 65.76%.
The 3 year average ROIC (13.66%) for TPB is below the current ROIC(13.94%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.73%
ROE 25.58%
ROIC 13.94%
ROA(3y)5.81%
ROA(5y)5.75%
ROE(3y)25.17%
ROE(5y)24.88%
ROIC(3y)13.66%
ROIC(5y)12.37%
TPB Yearly ROA, ROE, ROICTPB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

1.3 Margins

Looking at the Profit Margin, with a value of 11.63%, TPB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
TPB's Profit Margin has improved in the last couple of years.
TPB has a Operating Margin (23.10%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TPB has grown nicely.
TPB has a Gross Margin of 51.43%. 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 RankSector Rank
OM 23.1%
PM (TTM) 11.63%
GM 51.43%
OM growth 3Y5.71%
OM growth 5Y10.51%
PM growth 3Y0.2%
PM growth 5Y4.52%
GM growth 3Y2.25%
GM growth 5Y3.18%
TPB Yearly Profit, Operating, Gross MarginsTPB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

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7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPB is creating value.
TPB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TPB has less shares outstanding
TPB has a better debt/assets ratio than last year.
TPB Yearly Shares OutstandingTPB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M
TPB Yearly Total Debt VS Total AssetsTPB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

TPB has an Altman-Z score of 4.28. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
TPB has a better Altman-Z score (4.28) than 87.50% of its industry peers.
TPB has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as TPB would need 3.53 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.53, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
TPB has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.35, TPB is in line with its industry, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 3.53
Altman-Z 4.28
ROIC/WACC1.85
WACC7.55%
TPB Yearly LT Debt VS Equity VS FCFTPB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

TPB has a Current Ratio of 4.21. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TPB (4.21) is better than 87.50% of its industry peers.
TPB has a Quick Ratio of 1.78. This is a normal value and indicates that TPB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.78, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 4.21
Quick Ratio 1.78
TPB Yearly Current Assets VS Current LiabilitesTPB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.13% 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 12.95% on average per year.
TPB shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
TPB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.03% yearly.
EPS 1Y (TTM)17.13%
EPS 3Y1.75%
EPS 5Y12.95%
EPS Q2Q%14.47%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y0.02%
Revenue growth 5Y4.03%
Sales Q2Q%3.83%

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 7.79% on average per year.
Based on estimates for the next years, TPB will show a small growth in Revenue. The Revenue will grow by 3.84% on average per year.
EPS Next Y12.09%
EPS Next 2Y8.97%
EPS Next 3Y7.79%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y3.02%
Revenue Next 3Y3.84%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TPB Yearly Revenue VS EstimatesTPB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
TPB Yearly EPS VS EstimatesTPB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.34, the valuation of TPB can be described as rather expensive.
Based on the Price/Earnings ratio, TPB is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
TPB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.52, TPB is valued correctly.
Based on the Price/Forward Earnings ratio, TPB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, TPB is valued a bit cheaper.
Industry RankSector Rank
PE 17.34
Fwd PE 16.52
TPB Price Earnings VS Forward Price EarningsTPB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TPB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.46
EV/EBITDA 12.26
TPB Per share dataTPB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TPB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.34
EPS Next 2Y8.97%
EPS Next 3Y7.79%

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4

5. Dividend

5.1 Amount

With a yearly dividend of 0.50%, TPB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.64, TPB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, TPB's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.5%

5.2 History

On average, the dividend of TPB grows each year by 16.46%, 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)16.46%
Div Incr Years7
Div Non Decr Years7
TPB Yearly Dividends per shareTPB Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 0.05 0.1 0.15 0.2 0.25

5.3 Sustainability

TPB pays out 10.09% 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.
DP10.09%
EPS Next 2Y8.97%
EPS Next 3Y7.79%
TPB Yearly Income VS Free CF VS DividendTPB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
TPB Dividend Payout.TPB Dividend Payout, showing the Payout Ratio.TPB Dividend Payout.PayoutRetained Earnings

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TURNING POINT BRANDS INC

NYSE:TPB (1/21/2025, 8:04:00 PM)

After market: 58.08 0 (0%)

58.08

+0.5 (+0.87%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners85.32%
Inst Owner Change-0.1%
Ins Owners4.5%
Ins Owner Change0%
Market Cap1.03B
Analysts82.5
Price Target70.13 (20.75%)
Short Float %2.15%
Short Ratio1.72
Dividend
Industry RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.26
Dividend Growth(5Y)16.46%
DP10.09%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.15%
Min EPS beat(2)17.49%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)17.39%
Min EPS beat(4)15.03%
Max EPS beat(4)18.81%
EPS beat(8)8
Avg EPS beat(8)21.61%
EPS beat(12)11
Avg EPS beat(12)23.07%
EPS beat(16)15
Avg EPS beat(16)21.21%
Revenue beat(2)2
Avg Revenue beat(2)7.79%
Min Revenue beat(2)3.83%
Max Revenue beat(2)11.75%
Revenue beat(4)4
Avg Revenue beat(4)7.07%
Min Revenue beat(4)3.83%
Max Revenue beat(4)11.75%
Revenue beat(8)7
Avg Revenue beat(8)4.3%
Revenue beat(12)9
Avg Revenue beat(12)2.62%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)12.24%
PT rev (3m)42.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
Industry RankSector Rank
PE 17.34
Fwd PE 16.52
P/S 2.52
P/FCF 14.46
P/OCF 13.51
P/B 5.54
P/tB N/A
EV/EBITDA 12.26
EPS(TTM)3.35
EY5.77%
EPS(NY)3.51
Fwd EY6.05%
FCF(TTM)4.02
FCFY6.92%
OCF(TTM)4.3
OCFY7.4%
SpS23.04
BVpS10.48
TBVpS-1.66
PEG (NY)1.43
PEG (5Y)1.34
Profitability
Industry RankSector Rank
ROA 9.73%
ROE 25.58%
ROCE 21.24%
ROIC 13.94%
ROICexc 15.08%
ROICexgc 31.66%
OM 23.1%
PM (TTM) 11.63%
GM 51.43%
FCFM 17.43%
ROA(3y)5.81%
ROA(5y)5.75%
ROE(3y)25.17%
ROE(5y)24.88%
ROIC(3y)13.66%
ROIC(5y)12.37%
ROICexc(3y)17.66%
ROICexc(5y)15.58%
ROICexgc(3y)41.44%
ROICexgc(5y)37.9%
ROCE(3y)20.82%
ROCE(5y)18.85%
ROICexcg growth 3Y11.86%
ROICexcg growth 5Y11.92%
ROICexc growth 3Y10.21%
ROICexc growth 5Y11.28%
OM growth 3Y5.71%
OM growth 5Y10.51%
PM growth 3Y0.2%
PM growth 5Y4.52%
GM growth 3Y2.25%
GM growth 5Y3.18%
F-Score9
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 3.53
Debt/EBITDA 2.46
Cap/Depr 67.95%
Cap/Sales 1.23%
Interest Coverage 250
Cash Conversion 74.92%
Profit Quality 149.86%
Current Ratio 4.21
Quick Ratio 1.78
Altman-Z 4.28
F-Score9
WACC7.55%
ROIC/WACC1.85
Cap/Depr(3y)119.19%
Cap/Depr(5y)119.55%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.5%
Profit Quality(3y)157.61%
Profit Quality(5y)154.94%
High Growth Momentum
Growth
EPS 1Y (TTM)17.13%
EPS 3Y1.75%
EPS 5Y12.95%
EPS Q2Q%14.47%
EPS Next Y12.09%
EPS Next 2Y8.97%
EPS Next 3Y7.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y0.02%
Revenue growth 5Y4.03%
Sales Q2Q%3.83%
Revenue Next Year3.78%
Revenue Next 2Y3.02%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y-25.32%
EBIT growth 3Y5.74%
EBIT growth 5Y14.97%
EBIT Next Year32.26%
EBIT Next 3Y13.78%
EBIT Next 5YN/A
FCF growth 1Y167.49%
FCF growth 3Y17.68%
FCF growth 5Y41.41%
OCF growth 1Y117.44%
OCF growth 3Y15.26%
OCF growth 5Y38.57%