TURNING POINT BRANDS INC (TPB) Stock Fundamental Analysis
USA - NYSE:TPB - US90041L1052 - Common Stock
90.79 USD
+0.28 (+0.31%)
90.79 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 gets an excellent profitability rating and is at the same time showing great financial health properties. TPB is quite expensive at the moment. 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.
Each year in the past 5 years TPB has been profitable.
In the past 5 years TPB always reported a positive cash flow from operatings.
1.2 Ratios
TPB has a Return On Assets of 7.33%. This is in the better half of the industry: TPB outperforms 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 Return On Invested Capital of 12.78%. This is in the better half of the industry: TPB outperforms 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 14.52%.
| 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.
In the last couple of years the Profit Margin of TPB has grown nicely.
TPB has a better Operating Margin (26.40%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of TPB has grown nicely.
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
TPB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TPB has been increased compared to 1 year ago.
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
TPB has an Altman-Z score of 4.63. This indicates that TPB is financially healthy and has little risk of bankruptcy at the moment.
TPB has a better Altman-Z score (4.63) than 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's Debt to FCF ratio of 5.61 is fine compared to the rest of the industry. TPB outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that TPB has dependencies on debt financing.
TPB's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. TPB is outperformed by 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | 4.63 |
ROIC/WACC1.42
WACC8.98%
2.3 Liquidity
TPB has a Current Ratio of 4.22. This indicates that TPB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.22, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 2.67 indicates that TPB has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.67, TPB belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.22 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.43% 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.
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
Based on estimates for the next years, TPB will show a small growth in Earnings Per Share. The EPS will grow by 5.98% on average per year.
The Revenue is expected to grow by 11.75% on average over the next years. This is quite good.
EPS Next Y-1%
EPS Next 2Y5.98%
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.
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
With a Price/Earnings ratio of 24.28, TPB is valued on the expensive side.
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.
When comparing the Price/Earnings ratio of TPB to the average of the S&P500 Index (27.40), we can say TPB is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.83, the valuation of TPB can be described as rather expensive.
75.00% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPB indicates a slightly more expensive valuation: TPB is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.3 | ||
| EV/EBITDA | 17.19 |
4.3 Compensation for Growth
The decent profitability rating of TPB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y5.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, TPB is not a good candidate for dividend investing.
TPB's Dividend Yield is slightly below the industry average, which is at 3.94.
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 | 0.33% |
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.
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
TPB pays out 11.97% of its income as dividend. This is a sustainable payout ratio.
TPB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP11.97%
EPS Next 2Y5.98%
EPS Next 3YN/A
90.79
+0.28 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryTobacco
Earnings (Last)
Earnings (Next)
Inst Owners95.29%
Inst Owner Change-0.06%
Ins Owners4.31%
Ins Owner Change-0.31%
Market Cap1.64B
Analysts80
Price Target109.91 (21.06%)
Short Float %7.08%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)0%
PT rev (3m)19.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.24%
EPS NY rev (1m)-2.12%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 22.83 | ||
| P/S | 4.33 | ||
| P/FCF | 31.3 | ||
| P/OCF | 27.17 | ||
| P/B | 7.48 | ||
| P/tB | 222.71 | ||
| EV/EBITDA | 17.19 |
EPS(TTM)3.74
EY4.12%
EPS(NY)3.98
Fwd EY4.38%
FCF(TTM)2.9
FCFY3.2%
OCF(TTM)3.34
OCFY3.68%
SpS20.99
BVpS12.13
TBVpS0.41
PEG (NY)N/A
PEG (5Y)1.88
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 | 4.63 |
F-Score6
WACC8.98%
ROIC/WACC1.42
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 Y-1%
EPS Next 2Y5.98%
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 Year35.6%
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%