TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
121.87 USD
+1.54 (+1.28%)
121.87 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TPB. 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. 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.
- In the past year TPB had a positive cash flow from operations.
- TPB had positive earnings in each of the past 5 years.
- 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.
- 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.
- With a decent Return On Invested Capital value of 10.36%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TPB is in line with the industry average of 14.25%.
- 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
- TPB's Profit Margin of 13.38% is fine compared to the rest of the industry. TPB outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of TPB has grown nicely.
- TPB has a better Operating Margin (26.28%) than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of TPB has grown nicely.
- TPB has a better Gross Margin (60.99%) than 62.50% of its industry peers.
- In the last couple of years the Gross Margin of TPB has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TPB is 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.
- The debt/assets ratio for TPB has been reduced compared to a year ago.
2.2 Solvency
- TPB has an Altman-Z score of 5.32. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
- TPB has a better Altman-Z score (5.32) than 100.00% 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.
- TPB has a Debt to FCF ratio of 7.53. This is in the lower half of the industry: TPB underperforms 62.50% of its industry peers.
- A Debt/Equity ratio of 0.85 indicates that TPB is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.85, TPB is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.17
WACC8.85%
2.3 Liquidity
- A Current Ratio of 5.56 indicates that TPB has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 5.56, TPB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- A Quick Ratio of 3.98 indicates that TPB has no problem at all paying its short term obligations.
- TPB has a better Quick ratio (3.98) than 87.50% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 12.90% on average over the past years. This is quite good.
- TPB shows a decrease in Revenue. In the last year, the revenue decreased by -4.11%.
- TPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.07% yearly.
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
- The Earnings Per Share is expected to grow by 8.51% on average over the next years. This is quite good.
- Based on estimates for the next years, TPB will show a quite strong growth in Revenue. The Revenue will grow by 14.97% on average per year.
EPS Next Y10.42%
EPS Next 2Y8.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year19.01%
Revenue Next 2Y14.97%
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 quite expensively with a Price/Earnings ratio of 31.09.
- Compared to the rest of the industry, the Price/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/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 29.24 indicates a quite expensive valuation of TPB.
- Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TPB to the average of the S&P500 Index (25.98), we can say TPB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 29.24 |
4.2 Price Multiples
- TPB's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.64 | ||
| EV/EBITDA | 22.06 |
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)2.98
PEG (5Y)2.41
EPS Next 2Y8.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.25%, TPB is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.36, TPB is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
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 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
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%.