DB:0T5

Stock Analysis Report

Executive Summary

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products in the United States.

Snowflake

Fundamentals

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Turning Point Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.9%

0T5

-2.1%

DE Tobacco

2.8%

DE Market


1 Year Return

-38.7%

0T5

-19.1%

DE Tobacco

2.9%

DE Market

Return vs Industry: 0T5 underperformed the German Tobacco industry which returned -19.1% over the past year.

Return vs Market: 0T5 underperformed the German Market which returned 2.9% over the past year.


Share holder returns

0T5IndustryMarket
7 Day0.9%-2.1%2.8%
30 Day-15.6%-9.9%-0.2%
90 Day-54.1%-7.4%0.9%
1 Year-38.4%-38.7%-12.9%-19.1%6.2%2.9%
3 Year97.4%95.1%-36.1%-45.7%18.2%8.0%
5 Yearn/a-1.1%-22.3%43.1%23.6%

Price Volatility Vs. Market

How volatile is Turning Point Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Turning Point Brands undervalued based on future cash flows and its price relative to the stock market?

9%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: 0T5 (€21.4) is trading below our estimate of fair value (€23.55)

Significantly Undervalued: 0T5 is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: 0T5 is poor value based on its PE Ratio (13.6x) compared to the Tobacco industry average (10.1x).

PE vs Market: 0T5 is good value based on its PE Ratio (13.6x) compared to the German market (19.7x).


Price Based on Expected Growth

Low PEG Ratio: 0T5 is good value based on its PEG Ratio (0.5x)


Price Based on Value of Assets

PB vs Industry: 0T5 is overvalued based on its PB Ratio (4.4x) compared to the XE Tobacco industry average (1x).


Next Steps

Future Growth

How is Turning Point Brands expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

25.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: 0T5's forecast earnings growth (25.3% per year) is above the savings rate (0.2%).

Earnings vs Market: 0T5's earnings (25.3% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 0T5's revenue (14.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 0T5's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if 0T5's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Turning Point Brands performed over the past 5 years?

43.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 0T5 has become profitable over the past 5 years, growing earnings by 43.3% per year.

Accelerating Growth: 0T5's earnings growth over the past year (40.7%) is below its 5-year average (43.3% per year).

Earnings vs Industry: 0T5 earnings growth over the past year (40.7%) exceeded the Tobacco industry 1.2%.


Return on Equity

High ROE: Whilst 0T5's Return on Equity (32.06%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: 0T5 has a higher Return on Assets than the Tobacco industry average last year.


Return on Capital Employed

ROCE Improving: 0T5 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Turning Point Brands's financial position?


Financial Position Analysis

Short Term Liabilities: 0T5's short term assets ($121.2M) exceeds its short term liabilities ($67.9M)

Long Term Liabilities: 0T5's short term assets (121.2M) do not cover its long term liabilities (191.4M)


Debt to Equity History and Analysis

Debt Level: 0T5's debt to equity ratio (200.4%) is considered high

Reducing Debt: 0T5 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 0T5's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: 0T5's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

Inventory Level: 0T5 has a high level of physical assets or inventory.

Debt Coverage by Assets: 0T5's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Turning Point Brands's current dividend yield, its reliability and sustainability?

0.81%

Expected Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.9%industryaverage7.6%forecastin3Years0.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 0T5's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: 0T5's dividend (0.79%) is low compared to the top 25% of dividend payers in the German market (3.86%).

Stable Dividend: Whilst dividend payments have been stable, 0T5 has been paying a dividend for less than 10 years.

Growing Dividend: 0T5's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.4%), 0T5's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Turning Point Brands's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Larry Wexler (67yo)

10.3yrs

Tenure

US$2,200,614

Compensation

Mr. Lawrence S. Wexler, also known as Larry, has been the Chief Executive Officer and President of North Atlantic Trading Co Inc. since April 16, 2007. Mr. Wexler has been the Chief Executive Officer and P ...


CEO Compensation Analysis

Compensation vs. Market: Larry's total compensation ($USD2.20M) is about average for companies of similar size in the German market ($USD819.34K).

Compensation vs Earnings: Larry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 0T5's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: 0T5's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: 0T5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$32,40303 Sep 19
H. C. Diao
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$32.40
BuyUS$8,93822 Aug 19
Ashley Frushone
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares263
Max PriceUS$33.98
BuyUS$32,71015 Aug 19
H. C. Diao
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$32.71
BuyUS$67,87405 Aug 19
H. C. Diao
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$34.56
BuyUS$83,34502 Aug 19
Robert Lavan
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP
Shares2,500
Max PriceUS$33.34
BuyUS$90,53723 May 19
H. C. Diao
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$45.28
BuyUS$91,84329 Nov 18
Robert Lavan
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP
Shares3,500
Max PriceUS$26.24

Ownership Breakdown


Management Team

  • James Dobbins (59yo)

    Senior VP

    • Tenure: 20.3yrs
    • Compensation: US$839.07k
  • Jim Murray (58yo)

    Senior Vice President of Business Planning

    • Tenure: 14.8yrs
    • Compensation: US$235.93k
  • Larry Wexler (67yo)

    President

    • Tenure: 10.3yrs
    • Compensation: US$2.20m
  • Robert Lavan (38yo)

    CFO & Senior VP

    • Tenure: 1.6yrs
    • Compensation: US$971.84k
  • Chuck Melander

    Senior Vice President of Operations & Quality Assurance

    • Tenure: 0yrs
  • Brittani Cushman

    Senior Vice President of External Affairs

    • Tenure: 1.1yrs
  • Graham Purdy

    President of Nu-X Ventures

    • Tenure: 1.6yrs
  • Michael Terry

    Senior Vice President of Marketing

    • Tenure: 0yrs
  • Brian Wigginton

    Chief Accounting Officer & VP of Finance

    • Tenure: 1.6yrs

Board Members

  • Larry Wexler (67yo)

    President

    • Tenure: 10.3yrs
    • Compensation: US$2.20m
  • Greg Baxter (66yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$65.00k
  • Peggy Hwan Hebard (45yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$18.75k
  • H. C. Diao (62yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$97.50k
  • David Glazek (41yo)

    Chairman & Lead Independent Director

    • Tenure: 0.08yrs
  • Arne Zimmerman (81yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$75.00k
  • Ashley Frushone (44yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$16.25k

Company Information

Turning Point Brands, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Turning Point Brands, Inc.
  • Ticker: 0T5
  • Exchange: DB
  • Founded: 2004
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$446.834m
  • Listing Market Cap: US$404.384m
  • Shares outstanding: 19.66m
  • Website: https://www.turningpointbrands.com

Number of Employees


Location

  • Turning Point Brands, Inc.
  • 5201 Interchange Way
  • Louisville
  • Kentucky
  • 40229
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPBNYSE (New York Stock Exchange)YesVoting Common StockUSUSDMay 2016
0T5DB (Deutsche Boerse AG)YesVoting Common StockDEEURMay 2016

Biography

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products in the United States. The company operates in three segments: Smokeless Products, Smoking Products, and NewGen Pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 23:50
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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