Turning Point Brands, Inc. Fundamental Analysis (NYSE: TPB)
Turning Point Brands, Inc. (NYSE: TPB) shows moderate financial fundamentals with a PE ratio of 36.55, profit margin of 8.78%, and ROE of 11.93%. The company generates $0.5B in annual revenue with strong year-over-year growth of 28.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
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
ModerateTPB shows balanced valuation metrics.
Growth Score
ExcellentTPB delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTPB maintains a strong and stable balance sheet.
Profitability Score
WeakTPB struggles to sustain strong margins.
Key Financial Metrics
Is TPB Expensive or Cheap?
P/E Ratio
TPB trades at 36.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TPB's PEG of -11.24 indicates potential undervaluation.
Price to Book
The market values Turning Point Brands, Inc. at 4.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.47 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 $8.78 as profit after all expenses.
Operating Margin
Core operations generate 14.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.93 in profit for every $100 of shareholder equity.
ROA
Turning Point Brands, Inc. generates $5.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Turning Point Brands, Inc. generates limited operating cash flow of $31.36M, signaling weaker underlying cash strength.
Free Cash Flow
Turning Point Brands, Inc. produces free cash flow of $19.12M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
TPB converts 1.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-11.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TPB Stacks Against Its Sector Peers
| Metric | TPB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.55 | 20.66 | Worse (Expensive) |
| ROE | 11.93% | 698.00% | Weak |
| Net Margin | 8.78% | -2238.00% (disorted) | Weak |
| Debt/Equity | 0.72 | 0.77 | Neutral |
| Current Ratio | 5.67 | 2.30 | Strong Liquidity |
| ROA | 5.21% | 320.00% | Weak |
TPB outperforms its industry in 1 out of 6 key metrics, 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
21.07%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
61.31%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
39.13%
Industry Style: Defensive, Dividend, Low Volatility
High Growth