TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - NYSE:TPB - US90041L1052 - Common Stock
102.01 USD
+0.05 (+0.05%)
102.01 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. Both the health and profitability get an excellent rating, making TPB a very profitable company, without any liquidiy or solvency issues. 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.
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 better Return On Assets (7.33%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 19.98%, TPB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TPB has a better Return On Invested Capital (12.78%) than 75.00% of its industry peers.
TPB had an Average Return On Invested Capital over the past 3 years of 14.60%. This is in line with the industry average of 14.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 19.98% | ||
| ROIC | 12.78% |
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 11.55% is in line compared to the rest of the industry. TPB outperforms 50.00% 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 26.40%, 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 has a Gross Margin of 58.72%. 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.4% | ||
| PM (TTM) | 11.55% | ||
| GM | 58.72% |
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) well above the Cost of Capital (WACC), TPB is creating 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 4.96 indicates that TPB is not in any danger for bankruptcy at the moment.
TPB's Altman-Z score of 4.96 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
TPB has a debt to FCF ratio of 5.61. This is a neutral value as TPB would need 5.61 years to pay back of all of its debts.
TPB has a Debt to FCF ratio of 5.61. This is in the better half of the industry: TPB outperforms 62.50% of its industry peers.
TPB has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TPB (1.34) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.6
WACC8%
2.3 Liquidity
A Current Ratio of 4.22 indicates that TPB has no problem at all paying its short term obligations.
The Current ratio of TPB (4.22) is better than 87.50% of its industry peers.
TPB has a Quick Ratio of 2.67. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
TPB's Quick ratio of 2.67 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.43%, 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.
TPB shows a decrease in Revenue. In the last year, the revenue decreased by -6.49%.
The Revenue has been decreasing by -0.07% on average over the past years.
EPS 1Y (TTM)15.43%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%10.11%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%7.48%
3.2 Future
TPB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
The Revenue is expected to grow by 11.75% on average over the next years. This is quite good.
EPS Next Y1.14%
EPS Next 2Y7.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year14.72%
Revenue Next 2Y11.75%
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
A Price/Earnings ratio of 27.28 indicates a quite expensive valuation of TPB.
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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 24.82, the valuation of TPB can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TPB is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, TPB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.82 |
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 the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.17 | ||
| EV/EBITDA | 19.15 |
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 decent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)23.87
PEG (5Y)2.11
EPS Next 2Y7.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, TPB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.68, TPB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
5.2 History
On average, the dividend of TPB grows each year by 9.10%, 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)9.1%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
TPB pays out 11.97% 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.
DP11.97%
EPS Next 2Y7.76%
EPS Next 3YN/A
102.01
+0.05 (+0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners90.72%
Inst Owner Change5.83%
Ins Owners4.34%
Ins Owner Change-0.31%
Market Cap1.84B
Analysts80
Price Target109.91 (7.74%)
Short Float %7.12%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP11.97%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.28%
Min EPS beat(2)15.51%
Max EPS beat(2)19.05%
EPS beat(4)4
Avg EPS beat(4)15%
Min EPS beat(4)6.63%
Max EPS beat(4)19.05%
EPS beat(8)8
Avg EPS beat(8)16.89%
EPS beat(12)12
Avg EPS beat(12)19.46%
EPS beat(16)15
Avg EPS beat(16)20.02%
Revenue beat(2)2
Avg Revenue beat(2)9.6%
Min Revenue beat(2)9.15%
Max Revenue beat(2)10.06%
Revenue beat(4)3
Avg Revenue beat(4)5.14%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)10.06%
Revenue beat(8)6
Avg Revenue beat(8)5.19%
Revenue beat(12)10
Avg Revenue beat(12)4.3%
Revenue beat(16)11
Avg Revenue beat(16)2.79%
PT rev (1m)19.06%
PT rev (3m)19.06%
EPS NQ rev (1m)-6.31%
EPS NQ rev (3m)-5.8%
EPS NY rev (1m)0.71%
EPS NY rev (3m)2.75%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)3.26%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 24.82 | ||
| P/S | 4.86 | ||
| P/FCF | 35.17 | ||
| P/OCF | 30.53 | ||
| P/B | 8.41 | ||
| P/tB | 250.23 | ||
| EV/EBITDA | 19.15 |
EPS(TTM)3.74
EY3.67%
EPS(NY)4.11
Fwd EY4.03%
FCF(TTM)2.9
FCFY2.84%
OCF(TTM)3.34
OCFY3.28%
SpS20.99
BVpS12.13
TBVpS0.41
PEG (NY)23.87
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 19.98% | ||
| ROCE | 18.9% | ||
| ROIC | 12.78% | ||
| ROICexc | 16.14% | ||
| ROICexgc | 32.6% | ||
| OM | 26.4% | ||
| PM (TTM) | 11.55% | ||
| GM | 58.72% | ||
| FCFM | 13.82% |
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-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Debt/EBITDA | 2.78 | ||
| Cap/Depr | 139.51% | ||
| Cap/Sales | 2.1% | ||
| Interest Coverage | 13.77 | ||
| Cash Conversion | 57.06% | ||
| Profit Quality | 119.7% | ||
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 4.96 |
F-Score6
WACC8%
ROIC/WACC1.6
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)15.43%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%10.11%
EPS Next Y1.14%
EPS Next 2Y7.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%7.48%
Revenue Next Year14.72%
Revenue Next 2Y11.75%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.77%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year32.82%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y14.49%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y18.88%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%