TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
117.68 USD
-0.51 (-0.43%)
117.68 USD
0 (0%)
Overall TPB gets a fundamental rating of 5 out of 10. We evaluated TPB against 8 industry peers in the Tobacco industry. While TPB has a great profitability rating, 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.
- TPB had a positive operating cash flow in the past year.
- In the past 5 years TPB has always been profitable.
- In the past 5 years TPB always reported a positive cash flow from operatings.
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.
- TPB has a Return On Equity of 15.23%. This is amongst the best in the industry. TPB outperforms 100.00% of its industry peers.
- 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 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 has a better Profit Margin (13.38%) than 62.50% of its industry peers.
- In the last couple of years the Profit Margin of TPB has grown nicely.
- TPB has a Operating Margin of 26.28%. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of TPB has grown nicely.
- With a decent Gross Margin value of 60.99%, 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 | 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
- TPB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TPB has more shares outstanding than it did 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 5.25. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
- TPB has a Altman-Z score of 5.25. This is amongst the best in the industry. TPB outperforms 100.00% of its industry peers.
- 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's Debt to FCF ratio of 7.53 is on the low side compared to the rest of the industry. TPB is outperformed by 62.50% of its industry peers.
- TPB has a Debt/Equity ratio of 0.85. This is a neutral value indicating TPB is somewhat dependend on debt financing.
- TPB has a Debt to Equity ratio (0.85) which 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
WACC8.84%
2.3 Liquidity
- A Current Ratio of 5.56 indicates that TPB has no problem at all paying its short term obligations.
- TPB has a Current ratio of 5.56. This is amongst the best in the industry. TPB outperforms 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.
- With an excellent Quick ratio value of 3.98, TPB belongs to the best 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
- 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.
- 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%.
- 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)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
- Based on estimates for the next years, TPB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
- 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
- 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.
- 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
- Based on the Price/Earnings ratio of 30.02, the valuation of TPB can be described as expensive.
- Based on the Price/Earnings ratio, TPB is valued a bit more expensive than 62.50% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. TPB is around the same levels.
- The Price/Forward Earnings ratio is 28.23, which means the current valuation is very expensive for TPB.
- Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
- TPB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.02 | ||
| Fwd PE | 28.23 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TPB.
- 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 | 57.59 | ||
| EV/EBITDA | 21.59 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)2.88
PEG (5Y)2.33
EPS Next 2Y8.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- TPB has a yearly dividend return of 0.25%, which is pretty low.
- 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 1.81, 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.
- 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 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%.