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 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Tobacco industry. TPB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TPB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TPB had positive earnings in the past year.
TPB had a positive operating cash flow in the past year.
In the past 5 years TPB has always been profitable.
TPB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.73%, TPB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With an excellent Return On Equity value of 25.58%, TPB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.94%, TPB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TPB is significantly below the industry average of 65.29%.
The 3 year average ROIC (13.66%) for TPB is below the current ROIC(13.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 25.58% | ||
| ROIC | 13.94% |
ROA(3y)5.81%
ROA(5y)5.75%
ROE(3y)25.17%
ROE(5y)24.88%
ROIC(3y)13.66%
ROIC(5y)12.37%
1.3 Margins
TPB's Profit Margin of 11.63% is in line compared 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.
Looking at the Operating Margin, with a value of 23.10%, TPB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
TPB's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.43%, TPB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
TPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.1% | ||
| PM (TTM) | 11.63% | ||
| GM | 51.43% |
OM growth 3Y5.71%
OM growth 5Y10.51%
PM growth 3Y0.2%
PM growth 5Y4.52%
GM growth 3Y2.25%
GM growth 5Y3.18%
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.
Compared to 1 year ago, TPB has more shares outstanding
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
An Altman-Z score of 4.67 indicates that TPB is not in any danger for bankruptcy at the moment.
TPB's Altman-Z score of 4.67 is amongst the best of the industry. TPB outperforms 100.00% of its industry peers.
The Debt to FCF ratio of TPB is 3.53, which is a good value as it means it would take TPB, 3.53 years of fcf income to pay off all of its debts.
TPB has a Debt to FCF ratio of 3.53. This is in the better half of the industry: TPB outperforms 75.00% of its industry peers.
TPB has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
TPB has a Debt to Equity ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 4.67 |
ROIC/WACC1.83
WACC7.6%
2.3 Liquidity
A Current Ratio of 4.21 indicates that TPB has no problem at all paying its short term obligations.
TPB's Current ratio of 4.21 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
TPB has a Quick Ratio of 1.78. This is a normal value and indicates that TPB is financially healthy and should not expect problems in meeting its short term obligations.
TPB's Quick ratio of 1.78 is amongst the best of the industry. TPB outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.21 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
TPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.13%, 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 12.95% yearly.
TPB shows a decrease in Revenue. In the last year, the revenue decreased by -0.82%.
The Revenue has been growing slightly by 4.03% on average over the past years.
EPS 1Y (TTM)17.13%
EPS 3Y1.75%
EPS 5Y12.95%
EPS Q2Q%14.47%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y0.02%
Revenue growth 5Y4.03%
Sales Q2Q%3.83%
3.2 Future
TPB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.85% yearly.
TPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.84% yearly.
EPS Next Y14.48%
EPS Next 2Y10.29%
EPS Next 3Y8.85%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y3.02%
Revenue Next 3Y3.84%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
TPB is valuated rather expensively with a Price/Earnings ratio of 20.27.
62.50% of the companies in the same industry are more expensive than TPB, based on the Price/Earnings ratio.
TPB is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.86, which indicates a rather expensive current valuation of TPB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPB indicates a somewhat cheap valuation: TPB is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TPB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPB is valued a bit cheaper than 62.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TPB is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.91 | ||
| EV/EBITDA | 14.19 |
4.3 Compensation for Growth
TPB's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)1.57
EPS Next 2Y10.29%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, TPB is not a good candidate for dividend investing.
TPB's Dividend Yield is comparable with the industry average which is at 4.31.
Compared to an average S&P500 Dividend Yield of 2.27, TPB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of TPB is nicely growing with an annual growth rate of 16.46%!
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)16.46%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
10.09% 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.
DP10.09%
EPS Next 2Y10.29%
EPS Next 3Y8.85%
67.91
-1.25 (-1.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners84.73%
Inst Owner Change1.15%
Ins Owners4.48%
Ins Owner Change-0.09%
Market Cap1.20B
Analysts82.5
Price Target72.68 (7.02%)
Short Float %2.3%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.26
Dividend Growth(5Y)16.46%
DP10.09%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.15%
Min EPS beat(2)17.49%
Max EPS beat(2)18.81%
EPS beat(4)4
Avg EPS beat(4)17.39%
Min EPS beat(4)15.03%
Max EPS beat(4)18.81%
EPS beat(8)8
Avg EPS beat(8)21.61%
EPS beat(12)11
Avg EPS beat(12)23.07%
EPS beat(16)15
Avg EPS beat(16)21.21%
Revenue beat(2)2
Avg Revenue beat(2)7.79%
Min Revenue beat(2)3.83%
Max Revenue beat(2)11.75%
Revenue beat(4)4
Avg Revenue beat(4)7.07%
Min Revenue beat(4)3.83%
Max Revenue beat(4)11.75%
Revenue beat(8)7
Avg Revenue beat(8)4.3%
Revenue beat(12)9
Avg Revenue beat(12)2.62%
Revenue beat(16)12
Avg Revenue beat(16)3.21%
PT rev (1m)0%
PT rev (3m)42.24%
EPS NQ rev (1m)14.03%
EPS NQ rev (3m)13.51%
EPS NY rev (1m)2.13%
EPS NY rev (3m)10.73%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-1.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 18.86 | ||
| P/S | 2.95 | ||
| P/FCF | 16.91 | ||
| P/OCF | 15.79 | ||
| P/B | 6.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.19 |
EPS(TTM)3.35
EY4.93%
EPS(NY)3.6
Fwd EY5.3%
FCF(TTM)4.02
FCFY5.91%
OCF(TTM)4.3
OCFY6.33%
SpS23.04
BVpS10.48
TBVpS-1.66
PEG (NY)1.4
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.73% | ||
| ROE | 25.58% | ||
| ROCE | 21.24% | ||
| ROIC | 13.94% | ||
| ROICexc | 15.08% | ||
| ROICexgc | 31.66% | ||
| OM | 23.1% | ||
| PM (TTM) | 11.63% | ||
| GM | 51.43% | ||
| FCFM | 17.43% |
ROA(3y)5.81%
ROA(5y)5.75%
ROE(3y)25.17%
ROE(5y)24.88%
ROIC(3y)13.66%
ROIC(5y)12.37%
ROICexc(3y)17.66%
ROICexc(5y)15.58%
ROICexgc(3y)41.44%
ROICexgc(5y)37.9%
ROCE(3y)20.82%
ROCE(5y)18.85%
ROICexcg growth 3Y11.86%
ROICexcg growth 5Y11.92%
ROICexc growth 3Y10.21%
ROICexc growth 5Y11.28%
OM growth 3Y5.71%
OM growth 5Y10.51%
PM growth 3Y0.2%
PM growth 5Y4.52%
GM growth 3Y2.25%
GM growth 5Y3.18%
F-Score9
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 2.46 | ||
| Cap/Depr | 67.95% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.92% | ||
| Profit Quality | 149.86% | ||
| Current Ratio | 4.21 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 4.67 |
F-Score9
WACC7.6%
ROIC/WACC1.83
Cap/Depr(3y)119.19%
Cap/Depr(5y)119.55%
Cap/Sales(3y)1.55%
Cap/Sales(5y)1.5%
Profit Quality(3y)157.61%
Profit Quality(5y)154.94%
High Growth Momentum
Growth
EPS 1Y (TTM)17.13%
EPS 3Y1.75%
EPS 5Y12.95%
EPS Q2Q%14.47%
EPS Next Y14.48%
EPS Next 2Y10.29%
EPS Next 3Y8.85%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y0.02%
Revenue growth 5Y4.03%
Sales Q2Q%3.83%
Revenue Next Year3.78%
Revenue Next 2Y3.02%
Revenue Next 3Y3.84%
Revenue Next 5YN/A
EBIT growth 1Y-25.32%
EBIT growth 3Y5.74%
EBIT growth 5Y14.97%
EBIT Next Year32.26%
EBIT Next 3Y13.78%
EBIT Next 5YN/A
FCF growth 1Y167.49%
FCF growth 3Y17.68%
FCF growth 5Y41.41%
OCF growth 1Y117.44%
OCF growth 3Y15.26%
OCF growth 5Y38.57%