Turning Point Brands, Inc.
Turning Point Brands, Inc. Fundamental Analysis
Turning Point Brands, Inc. (TPB) shows moderate financial fundamentals with a PE ratio of 36.87, profit margin of 12.56%, and ROE of 20.51%. The company generates $0.5B in annual revenue with weak year-over-year growth of -11.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TPB's fundamental strength across five key dimensions:
Efficiency Score
WeakTPB struggles to generate sufficient returns from assets.
Valuation Score
WeakTPB trades at a premium to fair value.
Growth Score
WeakTPB faces weak or negative growth trends.
Financial Health Score
ExcellentTPB maintains a strong and stable balance sheet.
Profitability Score
ModerateTPB maintains healthy but balanced margins.
Key Financial Metrics
Is TPB Expensive or Cheap?
P/E Ratio
TPB trades at 36.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TPB's PEG of 3.71 indicates potential overvaluation.
Price to Book
The market values Turning Point Brands, Inc. at 5.77 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.05 times EBITDA. This signals the market has high growth expectations.
How Well Does TPB Make Money?
Net Profit Margin
For every $100 in sales, Turning Point Brands, Inc. keeps $12.56 as profit after all expenses.
Operating Margin
Core operations generate 20.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.51 in profit for every $100 of shareholder equity.
ROA
Turning Point Brands, Inc. generates $7.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Turning Point Brands, Inc. produces operating cash flow of $60.10M, showing steady but balanced cash generation.
Free Cash Flow
Turning Point Brands, Inc. generates strong free cash flow of $46.58M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.44 in free cash annually.
FCF Yield
TPB converts 2.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.82
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How TPB Stacks Against Its Sector Peers
| Metric | TPB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.87 | 22.87 | Worse (Expensive) |
| ROE | 20.51% | 1267.00% | Weak |
| Net Margin | 12.56% | -7600.00% (disorted) | Strong |
| Debt/Equity | 0.82 | 0.82 | Neutral |
| Current Ratio | 5.56 | 2.41 | Strong Liquidity |
| ROA | 7.62% | -203145.00% (disorted) | Weak |
TPB outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Turning Point Brands, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.27%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
219.87%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
96.38%
Industry Style: Defensive, Dividend, Low Volatility
High Growth