TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPB - US90041L1052 - Common Stock
108.4 USD
+0.39 (+0.36%)
108.4 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. While TPB belongs to the best of the industry regarding profitability, 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.
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
The Return On Assets of TPB (7.05%) is better than 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.
TPB has a better Return On Invested Capital (10.36%) 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 14.25%.
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
With a decent Profit Margin value of 13.38%, TPB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of TPB has grown nicely.
Looking at the Gross Margin, with a value of 60.99%, TPB is in the better half of 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPB is still creating some value.
Compared to 1 year ago, TPB has more shares outstanding
Compared to 5 years ago, TPB has less shares outstanding
Compared to 1 year ago, TPB has an improved debt to assets ratio.
2.2 Solvency
TPB has an Altman-Z score of 4.97. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.97, TPB belongs to the top 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 worse Debt to FCF ratio (7.53) than 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.
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 | 4.97 |
ROIC/WACC1.18
WACC8.81%
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.
TPB has a better Quick ratio (3.98) than 87.50% of its industry peers.
| 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.
Looking at the last year, TPB shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
The Revenue has been decreasing by -0.07% on average over the past years.
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 14.54% yearly.
EPS Next Y10.42%
EPS Next 2Y8.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.97%
Revenue Next 2Y14.54%
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 27.65, 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 26.51. TPB is around the same levels.
A Price/Forward Earnings ratio of 26.01 indicates a quite expensive valuation of TPB.
62.50% of the companies in the same industry are cheaper than TPB, based on the Price/Forward Earnings ratio.
TPB's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 26.01 |
4.2 Price Multiples
TPB's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 53.05 | ||
| EV/EBITDA | 19.88 |
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)2.66
PEG (5Y)2.14
EPS Next 2Y8.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, TPB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, TPB is paying slightly less dividend.
With a Dividend Yield of 0.28, TPB pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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
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
108.4
+0.39 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners99.74%
Inst Owner Change13.31%
Ins Owners3.81%
Ins Owner Change-0.47%
Market Cap2.07B
Revenue(TTM)391.52M
Net Income(TTM)52.38M
Analysts80
Price Target121.13 (11.74%)
Short Float %7.88%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend0.28
Dividend Growth(5Y)9.1%
DP10.21%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.44%
Min EPS beat(2)19.05%
Max EPS beat(2)27.82%
EPS beat(4)4
Avg EPS beat(4)17.25%
Min EPS beat(4)6.63%
Max EPS beat(4)27.82%
EPS beat(8)8
Avg EPS beat(8)17.32%
EPS beat(12)12
Avg EPS beat(12)20.16%
EPS beat(16)15
Avg EPS beat(16)21.62%
Revenue beat(2)2
Avg Revenue beat(2)8%
Min Revenue beat(2)6.86%
Max Revenue beat(2)9.15%
Revenue beat(4)3
Avg Revenue beat(4)5.9%
Min Revenue beat(4)-2.45%
Max Revenue beat(4)10.06%
Revenue beat(8)7
Avg Revenue beat(8)6.49%
Revenue beat(12)10
Avg Revenue beat(12)4.83%
Revenue beat(16)12
Avg Revenue beat(16)3.44%
PT rev (1m)2.15%
PT rev (3m)10.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.76%
EPS NY rev (1m)10.1%
EPS NY rev (3m)11.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.03%
Revenue NY rev (1m)4.03%
Revenue NY rev (3m)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.65 | ||
| Fwd PE | 26.01 | ||
| P/S | 5.28 | ||
| P/FCF | 53.05 | ||
| P/OCF | 41.13 | ||
| P/B | 6.01 | ||
| P/tB | 15.52 | ||
| EV/EBITDA | 19.88 |
EPS(TTM)3.92
EY3.62%
EPS(NY)4.17
Fwd EY3.84%
FCF(TTM)2.04
FCFY1.89%
OCF(TTM)2.64
OCFY2.43%
SpS20.53
BVpS18.04
TBVpS6.99
PEG (NY)2.66
PEG (5Y)2.14
Graham Number39.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 15.23% | ||
| ROCE | 15.32% | ||
| ROIC | 10.36% | ||
| ROICexc | 14.8% | ||
| ROICexgc | 26.8% | ||
| OM | 26.28% | ||
| PM (TTM) | 13.38% | ||
| GM | 60.99% | ||
| FCFM | 9.95% |
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%
ROICexgc growth 3Y-5.27%
ROICexgc 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 Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.53 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 211.44% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 14.12 | ||
| Cash Conversion | 46.44% | ||
| Profit Quality | 74.4% | ||
| Current Ratio | 5.56 | ||
| Quick Ratio | 3.98 | ||
| Altman-Z | 4.97 |
F-Score6
WACC8.81%
ROIC/WACC1.18
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)17.01%
EPS 3Y5.44%
EPS 5Y12.9%
EPS Q2Q%20.69%
EPS Next Y10.42%
EPS Next 2Y8.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-6.8%
Revenue growth 5Y-0.07%
Sales Q2Q%12.65%
Revenue Next Year18.97%
Revenue Next 2Y14.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.08%
EBIT growth 3Y-3.48%
EBIT growth 5Y12.32%
EBIT Next Year41.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-19.9%
FCF growth 3Y0.2%
FCF growth 5Y13.62%
OCF growth 1Y-6.74%
OCF growth 3Y-0.57%
OCF growth 5Y12.15%
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%.