TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
120.33 USD
+2.65 (+2.25%)
120.33 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. While showing a medium growth rate, TPB is valued expensive at the moment.
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.
- 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 has a Return On Assets of 7.05%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
- With an excellent Return On Equity value of 15.23%, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Return On Invested Capital of TPB (10.36%) is better than 75.00% of its industry peers.
- 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 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
- TPB has a Profit Margin of 13.38%. This is in the better half of the industry: TPB outperforms 62.50% of its industry peers.
- TPB's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 26.28%, TPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- TPB's Operating Margin has improved in the last couple of years.
- TPB's Gross Margin of 60.99% is fine compared to the rest of the industry. TPB outperforms 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
- 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.
- TPB has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.25 indicates that TPB is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.25, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TPB has a debt to FCF ratio of 7.53. This is a slightly negative value and a sign of low solvency as TPB would need 7.53 years to pay back of 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.
- 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 | 5.25 |
ROIC/WACC1.17
WACC8.86%
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.
- 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.
- 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.
- Looking at the last year, TPB shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
- 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.
- TPB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.97% yearly.
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.
- 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
- The Price/Earnings ratio is 30.70, which means the current valuation is very expensive for TPB.
- 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.
- When comparing the Price/Earnings ratio of TPB to the average of the S&P500 Index (27.25), we can say TPB is valued inline with the index average.
- With a Price/Forward Earnings ratio of 28.87, TPB can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
- TPB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.7 | ||
| Fwd PE | 28.87 |
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.
- 62.50% of the companies in the same industry are cheaper than TPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.89 | ||
| EV/EBITDA | 21.59 |
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.
- TPB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.95
PEG (5Y)2.38
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
- 10.21% of the earnings are spent on dividend by TPB. This is a low number and 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%.