TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
NYSE:TPB - New York Stock Exchange, Inc. - US90041L1052 - Common Stock - Currency: USD
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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years TPB had a positive operating cash flow.
1.2 Ratios
TPB has a Return On Assets of 7.47%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
The Return On Equity of TPB (21.13%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.66%, TPB is in the better half of 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 14.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 21.13% | ||
| ROIC | 12.66% |
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 has a Profit Margin of 11.40%. This is comparable to the rest of the industry: TPB outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of TPB has grown nicely.
TPB has a better Operating Margin (25.60%) than 75.00% of its industry peers.
TPB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 56.55%, TPB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Gross Margin of TPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.6% | ||
| PM (TTM) | 11.4% | ||
| GM | 56.55% |
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.
Compared to 5 years ago, TPB has less shares outstanding
The debt/assets ratio for TPB has been reduced compared to a year ago.
2.2 Solvency
TPB has an Altman-Z score of 4.16. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
TPB's Altman-Z score of 4.16 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
The Debt to FCF ratio of TPB is 5.29, which is a neutral value as it means it would take TPB, 5.29 years of fcf income to pay off all of its debts.
TPB has a Debt to FCF ratio of 5.29. This is in the lower half of the industry: TPB underperforms 62.50% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that TPB has dependencies on debt financing.
TPB's Debt to Equity ratio of 1.47 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 | 1.47 | ||
| Debt/FCF | 5.29 | ||
| Altman-Z | 4.16 |
ROIC/WACC1.57
WACC8.06%
2.3 Liquidity
TPB has a Current Ratio of 4.42. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
TPB's Current ratio of 4.42 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
TPB has a Quick Ratio of 2.64. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
TPB's Quick ratio of 2.64 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.42 | ||
| Quick Ratio | 2.64 |
3. Growth
3.1 Past
TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.24%, 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 -7.83% in the past year.
Measured over the past years, TPB shows a decrease in Revenue. The Revenue has been decreasing by -0.07% on average per year.
EPS 1Y (TTM)16.24%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%13.75%
Revenue 1Y (TTM)-7.83%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%9.66%
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 3.92% on average per year.
TPB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.15% yearly.
EPS Next Y0.43%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.11%
Revenue Next 2Y10.15%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TPB is valuated rather expensively with a Price/Earnings ratio of 20.40.
Based on the Price/Earnings ratio, TPB is valued a bit cheaper than 62.50% of the companies in the same industry.
TPB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.48, the valuation of TPB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TPB is valued a bit cheaper 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 (35.19), we can say TPB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than TPB, based on the Enterprise Value to EBITDA ratio.
TPB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 14.83 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)47.52
PEG (5Y)1.58
EPS Next 2Y3.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TPB has a yearly dividend return of 0.41%, which is pretty low.
Compared to an average industry Dividend Yield of 3.80, TPB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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.
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
12.18% of the earnings are spent on dividend by TPB. This is a low number and sustainable payout ratio.
The dividend of TPB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP12.18%
EPS Next 2Y3.92%
EPS Next 3YN/A
NYSE:TPB (7/14/2025, 3:29:00 PM)
74.475
+2.21 (+3.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners87.73%
Inst Owner Change-0.34%
Ins Owners4.48%
Ins Owner Change0.62%
Market Cap1.33B
Analysts82.5
Price Target92.31 (23.95%)
Short Float %7.1%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP12.18%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.07%
Min EPS beat(2)6.63%
Max EPS beat(2)15.51%
EPS beat(4)4
Avg EPS beat(4)14.61%
Min EPS beat(4)6.63%
Max EPS beat(4)18.81%
EPS beat(8)8
Avg EPS beat(8)18.58%
EPS beat(12)11
Avg EPS beat(12)17.52%
EPS beat(16)15
Avg EPS beat(16)20.58%
Revenue beat(2)1
Avg Revenue beat(2)3.8%
Min Revenue beat(2)-2.45%
Max Revenue beat(2)10.06%
Revenue beat(4)3
Avg Revenue beat(4)5.8%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)11.75%
Revenue beat(8)6
Avg Revenue beat(8)4.09%
Revenue beat(12)9
Avg Revenue beat(12)3.23%
Revenue beat(16)11
Avg Revenue beat(16)3.11%
PT rev (1m)0%
PT rev (3m)16.77%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)2.03%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)2.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.4 | ||
| Fwd PE | 19.48 | ||
| P/S | 3.6 | ||
| P/FCF | 24.07 | ||
| P/OCF | 21.56 | ||
| P/B | 6.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.83 |
EPS(TTM)3.65
EY4.9%
EPS(NY)3.82
Fwd EY5.13%
FCF(TTM)3.09
FCFY4.15%
OCF(TTM)3.45
OCFY4.64%
SpS20.67
BVpS11.16
TBVpS-0.52
PEG (NY)47.52
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.47% | ||
| ROE | 21.13% | ||
| ROCE | 18.72% | ||
| ROIC | 12.66% | ||
| ROICexc | 15.77% | ||
| ROICexgc | 32.48% | ||
| OM | 25.6% | ||
| PM (TTM) | 11.4% | ||
| GM | 56.55% | ||
| FCFM | 14.97% |
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-Score8
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.29 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 115.97% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.66% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 4.42 | ||
| Quick Ratio | 2.64 | ||
| Altman-Z | 4.16 |
F-Score8
WACC8.06%
ROIC/WACC1.57
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)16.24%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%13.75%
EPS Next Y0.43%
EPS Next 2Y3.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.83%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%9.66%
Revenue Next Year11.11%
Revenue Next 2Y10.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-0.86%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year33.56%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y119.19%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y89.61%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%