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Turning Point Brands

NYSE:TPB
Snowflake Description

Reasonable growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TPB
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

Turning Point Brands, Inc., together with its subsidiaries, provides other tobacco products in the United States. The last earnings update was 76 days ago. More info.


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TPB Share Price and Events
7 Day Returns
-1.5%
NYSE:TPB
1.4%
US Tobacco
0.8%
US Market
1 Year Returns
61.9%
NYSE:TPB
-14.8%
US Tobacco
4.8%
US Market
TPB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Turning Point Brands (TPB) -1.5% 0.5% 16.4% 61.9% 361.5% -
US Tobacco 1.4% -2.5% -12.5% -14.8% -27.5% 16.9%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • TPB outperformed the Tobacco industry which returned -14.8% over the past year.
  • TPB outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
TPB
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Turning Point Brands to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Turning Point Brands.

NYSE:TPB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TPB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.344 (1 + (1- 21%) (21.88%))
0.6
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:TPB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Turning Point Brands is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TPB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2020 6.54 Est @ -57.78% 6.08
2021 3.95 Est @ -39.63% 3.42
2022 2.89 Est @ -26.92% 2.32
2023 2.37 Est @ -18.02% 1.77
2024 2.09 Est @ -11.8% 1.45
2025 1.93 Est @ -7.44% 1.25
2026 1.85 Est @ -4.39% 1.11
2027 1.81 Est @ -2.25% 1.01
2028 1.79 Est @ -0.76% 0.93
2029 1.80 Est @ 0.29% 0.87
Present value of next 10 years cash flows $20.23
NYSE:TPB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1.80 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$38.71
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $38.71 ÷ (1 + 7.5%)10
$18.78
NYSE:TPB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20.23 + $18.78
$39.02
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $39.02 / 19.59
$1.99
NYSE:TPB Discount to Share Price
Calculation Result
Value per share (USD) From above. $1.99
Current discount Discount to share price of $51.23
= -1 x ($51.23 - $1.99) / $1.99
-2472.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Turning Point Brands is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Turning Point Brands's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Turning Point Brands's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TPB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.48
NYSE:TPB Share Price ** NYSE (2019-07-15) in USD $51.23
Global Tobacco Industry PE Ratio Median Figure of 12 Publicly-Listed Tobacco Companies 13.53x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Turning Point Brands.

NYSE:TPB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TPB Share Price ÷ EPS (both in USD)

= 51.23 ÷ 1.48

34.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Turning Point Brands is overvalued based on earnings compared to the Global Tobacco industry average.
  • Turning Point Brands is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Turning Point Brands's expected growth come at a high price?
Raw Data
NYSE:TPB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
23.7%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.55x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:TPB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.56x ÷ 23.7%

1.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Turning Point Brands is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Turning Point Brands's assets?
Raw Data
NYSE:TPB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $4.54
NYSE:TPB Share Price * NYSE (2019-07-15) in USD $51.23
United States of America Tobacco Industry PB Ratio Median Figure of 8 Publicly-Listed Tobacco Companies 5.06x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NYSE:TPB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TPB Share Price ÷ Book Value per Share (both in USD)

= 51.23 ÷ 4.54

11.29x

* Primary Listing of Turning Point Brands.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Turning Point Brands is overvalued based on assets compared to the US Tobacco industry average.
X
Value checks
We assess Turning Point Brands's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Turning Point Brands has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Turning Point Brands expected to grow at an attractive rate?
  • Turning Point Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Turning Point Brands's earnings growth is expected to exceed the United States of America market average.
  • Turning Point Brands's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TPB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TPB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 23.7%
NYSE:TPB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 13%
United States of America Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TPB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TPB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 443 45 2
2019-12-31 395 38 2
NYSE:TPB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 350 19 29
2018-12-31 333 13 25
2018-09-30 312 10 24
2018-06-30 302 29 23
2018-03-31 293 40 21
2017-12-31 286 30 20
2017-09-30 266 30 34
2017-06-30 244 25 33
2017-03-31 223 6 27
2016-12-31 206 9 27
2016-09-30 199 11 12
2016-06-30 200 17 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Turning Point Brands's earnings are expected to grow significantly at over 20% yearly.
  • Turning Point Brands's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TPB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Turning Point Brands Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TPB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.24 2.38 2.10 2.00
2019-12-31 1.87 1.96 1.78 2.00
NYSE:TPB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.48
2018-12-31 1.31
2018-09-30 1.24
2018-06-30 1.21
2018-03-31 1.12
2017-12-31 1.06
2017-09-30 1.77
2017-06-30 1.69
2017-03-31 1.37
2016-12-31 1.63
2016-09-30 0.91
2016-06-30 1.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Turning Point Brands will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Turning Point Brands's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Turning Point Brands has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Turning Point Brands's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Turning Point Brands has delivered over 20% year on year earnings growth in the past 5 years.
  • Turning Point Brands's 1-year earnings growth is less than its 5-year average (34.9% vs 46.3%)
  • Turning Point Brands's earnings growth has exceeded the Global Tobacco industry average in the past year (34.9% vs 24.7%).
Earnings and Revenue History
Turning Point Brands's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Turning Point Brands Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TPB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 350.37 28.82 82.38 2.50
2018-12-31 332.68 25.29 77.90 2.50
2018-09-30 311.96 23.82 85.58 2.30
2018-06-30 301.95 23.24 80.96 2.30
2018-03-31 292.93 21.36 78.18 2.30
2017-12-31 285.78 20.21 73.07 2.30
2017-09-30 266.04 33.78 67.43 1.80
2017-06-30 243.66 33.20 61.57 1.80
2017-03-31 223.15 26.56 57.23 1.80
2016-12-31 206.23 26.91 54.05 2.00
2016-09-30 199.15 12.20 51.19 1.40
2016-06-30 199.62 10.18 54.08 1.40
2016-03-31 196.04 7.96 51.08 1.40
2015-12-31 197.26 9.15 50.39 1.40
2015-09-30 198.51 9.77 51.05
2015-06-30 196.94 7.75 47.16
2015-03-31 200.18 -8.41 46.92
2014-12-31 200.33 -29.41 43.91 1.20
2013-12-31 193.30 -1.61 44.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Turning Point Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Turning Point Brands used its assets more efficiently than the Global Tobacco industry average last year based on Return on Assets.
  • Turning Point Brands has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Turning Point Brands's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Turning Point Brands has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Turning Point Brands's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Turning Point Brands's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Turning Point Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Turning Point Brands's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Turning Point Brands's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Turning Point Brands Company Filings, last reported 3 months ago.

NYSE:TPB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 88.84 208.40 1.74
2018-12-31 82.62 220.72 3.31
2018-09-30 76.99 226.93 1.63
2018-06-30 65.09 210.45 3.43
2018-03-31 54.89 198.87 3.79
2017-12-31 53.32 202.04 2.61
2017-09-30 49.70 210.85 4.24
2017-06-30 41.84 221.59 1.69
2017-03-31 35.88 227.40 2.25
2016-12-31 34.06 218.23 2.87
2016-09-30 17.80 201.14 4.41
2016-06-30 10.82 207.71 3.61
2016-03-31 -79.23 293.15 2.94
2015-12-31 -81.61 292.44 4.84
2015-09-30 -84.58 310.40 9.84
2015-06-30 -89.42 316.85 5.33
2015-03-31 -91.57 312.55 8.47
2014-12-31 -91.57 312.55 8.47
2013-12-31 -63.43 300.56 35.38
  • Turning Point Brands's level of debt (234.6%) compared to net worth is high (greater than 40%).
  • Turning Point Brands had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is not well covered by operating cash flow (9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).
X
Financial health checks
We assess Turning Point Brands's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Turning Point Brands has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.35%
Current annual income from Turning Point Brands dividends. Estimated to be 0.36% next year.
If you bought $2,000 of Turning Point Brands shares you are expected to receive $7 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Turning Point Brands's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Turning Point Brands's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TPB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TPB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.19 2.00
2019-12-31 0.18 2.00
NYSE:TPB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-30 0.180 0.356
2019-03-04 0.180 0.404
2018-11-06 0.180 0.555
2018-08-07 0.160 0.421
2018-05-08 0.160 0.546
2018-03-07 0.160 0.766
2017-11-09 0.160 0.823

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Turning Point Brands is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Turning Point Brands is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Turning Point Brands's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Turning Point Brands's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Turning Point Brands's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Turning Point Brands's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Turning Point Brands afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Turning Point Brands has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Larry Wexler
COMPENSATION $2,200,614
AGE 67
TENURE AS CEO 10.1 years
CEO Bio

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 President of Turning Point Brands, Inc (Formerly North Atlantic Holding Co. Inc.) since June 2009. He served as the Chief Operating Officer of Turning Point Brands, Inc (formerly North Atlantic Holding Co. Inc.) since June 8, 2005. He served as Chief Operating Officer of North Atlantic Trading Co Inc. from June 8, 2005 to April 16, 2007. He served as President and Chief Operating Officer of North Atlantic Cigarette Company Inc.,(NACC), a subsidiary of North Atlantic Trading Co Inc. since December 2003. Prior to NACC, Mr. Wexler was a consultant to a number of emerging marketing, communication and financial companies, advising them on financial, marketing and strategic matters, at times in an operating role from 1998 to 2003. From 1977 to 1998, he was employed by Philip Morris, USA in various positions in the Sales, Marketing and Finance Departments including Group Director, Discount Brands. In this position, his group introduced the Basic and Alpine brands. Mr. Wexler served as Senior Vice President of Marketing of Philip Morris from 1992 to 1993 and Senior Vice President of Finance, Planning and Information Services from 1993 to 1998. He has been a Director of Turning Point Brands, Inc (formerly North Atlantic Holding Co. Inc.) since 2013. Mr. Wexler holds a bachelor of science in administrative science from Yale and a master of business administration from Stanford.

CEO Compensation
  • Larry's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Larry's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Turning Point Brands management team in years:

1.3
Average Tenure
58.5
Average Age
  • The average tenure for the Turning Point Brands management team is less than 2 years, this suggests a new team.
Management Team

Larry Wexler

TITLE
President
COMPENSATION
$2M
AGE
67
TENURE
10.1 yrs

Robert Lavan

TITLE
CFO & Senior VP
COMPENSATION
$972K
AGE
38
TENURE
1.3 yrs

James Dobbins

TITLE
Senior VP
COMPENSATION
$839K
AGE
59
TENURE
20.1 yrs

Chuck Melander

TITLE
Senior Vice President of Operations & Quality Assurance

Brian Wigginton

TITLE
Chief Accounting Officer & VP of Finance
TENURE
1.3 yrs

Michael Terry

TITLE
Senior Vice President of Marketing

Jim Murray

TITLE
Senior Vice President of Business Planning
COMPENSATION
$236K
AGE
58
TENURE
14.5 yrs

Brittani Cushman

TITLE
Senior Vice President of External Affairs
TENURE
0.8 yrs

Graham Purdy

TITLE
President of Nu-X Ventures
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Turning Point Brands board of directors in years:

6.5
Average Tenure
64
Average Age
  • The tenure for the Turning Point Brands board of directors is about average.
Board of Directors

Thomas Helms

TITLE
Non-Executive Chairman
COMPENSATION
$100K
AGE
79
TENURE
22.1 yrs

Larry Wexler

TITLE
President
COMPENSATION
$2M
AGE
67
TENURE
6.5 yrs

H. C. Diao

TITLE
Independent Director
COMPENSATION
$98K
AGE
62
TENURE
6.7 yrs

David Glazek

TITLE
Lead Independent Director
AGE
41
TENURE
1.5 yrs

Ashley Frushone

TITLE
Independent Director
COMPENSATION
$16K
AGE
44
TENURE
0.8 yrs

Greg Baxter

TITLE
Independent Director
COMPENSATION
$65K
AGE
66
TENURE
13.3 yrs

Arne Zimmerman

TITLE
Independent Director
COMPENSATION
$75K
AGE
81
TENURE
6.5 yrs

Peggy Hwan Hebard

TITLE
Independent Director
COMPENSATION
$19K
AGE
45
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Turning Point Brands individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. May 19 Buy H. C. Diao Individual 21. May 19 21. May 19 2,000 $50.55 $101,080
29. Nov 18 Buy Robert Lavan Individual 29. Nov 18 29. Nov 18 3,500 $29.86 $104,510
12. Sep 18 Buy Standard General L.P. Company 05. Sep 18 05. Sep 18 153,079 $34.60 $5,296,533
12. Sep 18 Sell Thomas Helms Individual 10. Sep 18 10. Sep 18 -25,000 $42.04 $-1,051,000
28. Aug 18 Sell James Murray Individual 28. Aug 18 28. Aug 18 -4,047 $33.09 $-133,915
21. Aug 18 Sell Thomas Helms Individual 17. Aug 18 17. Aug 18 -20,000 $31.82 $-636,400
16. Aug 18 Sell Thomas Helms Individual 14. Aug 18 15. Aug 18 -7,500 $33.45 $-241,357
X
Management checks
We assess Turning Point Brands's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Turning Point Brands has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Do Institutions Own Shares In Turning Point Brands, Inc. (NYSE:TPB)?

See our latest analysis for Turning Point Brands NYSE:TPB Ownership Summary, July 11th 2019 What Does The Institutional Ownership Tell Us About Turning Point Brands? … Insider Ownership Of Turning Point Brands While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … Public Company Ownership It appears to us that public companies own 51% of TPB.

Simply Wall St -

Should You Be Impressed By Turning Point Brands, Inc.'s (NYSE:TPB) ROE?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Turning Point Brands: 32% = US$29m ÷ US$89m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Turning Point Brands Have A Good Return On Equity? … Combining Turning Point Brands's Debt And Its 32% Return On Equity Turning Point Brands does use a significant amount of debt to increase returns.

Simply Wall St -

Turning Point Brands's (NYSE:TPB) Wonderful 386% Share Price Increase Shows How Capitalism Can Build Wealth

During three years of share price growth, Turning Point Brands achieved compound earnings per share growth of 10% per year. … This free interactive report on Turning Point Brands's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. … As it happens, Turning Point Brands's TSR for the last 3 years was 391%, which exceeds the share price return mentioned earlier.

Simply Wall St -

Does The Turning Point Brands, Inc. (NYSE:TPB) Share Price Tend To Follow The Market?

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … With a market capitalisation of US$1.0b, Turning Point Brands is a small cap stock.

Simply Wall St -

Do Turning Point Brands's (NYSE:TPB) Earnings Warrant Your Attention?

So if you're like me, you might be more interested in profitable, growing companies, like Turning Point Brands (NYSE:TPB). … View our latest analysis for Turning Point Brands How Quickly Is Turning Point Brands Increasing Earnings Per Share? … As a result, I'm encouraged by the fact that insiders own Turning Point Brands shares worth a considerable sum.

Simply Wall St -

Here's What Turning Point Brands, Inc.'s (NYSE:TPB) ROCE Can Tell Us

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Turning Point Brands, Inc. (NYSE:TPB) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Turning Point Brands, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … All up, insiders sold more shares in Turning Point Brands than they bought, over the last year

Simply Wall St -

What Does Turning Point Brands, Inc.'s (NYSE:TPB) P/E Ratio Tell You?

We'll apply a basic P/E ratio analysis to Turning Point Brands, Inc.'s (NYSE:TPB), to help you decide if the stock is worth further research. … Turning Point Brands has a P/E ratio of 33.43, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is There Now An Opportunity In Turning Point Brands, Inc. (NYSE:TPB)?

Turning Point Brands, Inc. … received a lot of attention from a substantial price increase on the NYSE over the last few months. … Today I will analyse the most recent data on Turning Point Brands’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Investors Who Bought Turning Point Brands Shares A Year Ago Are Now Up 97%

To wit, the Turning Point Brands, Inc. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Dive deeper into the earnings by checking this interactive graph of Turning Point Brands's earnings, revenue and cash flow.

Simply Wall St -

Company Info

Description

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 Products. The Smokeless Products segment manufactures and markets moist snuff; and contracts for and markets loose leaf chewing tobacco products. The Smoking Products segment imports and markets cigarette papers, tubes, and related products, as well as finished cigars, make-your-own cigar tobaccos, and cigar wraps; and processes, packages, and markets pipe tobaccos. The NewGen Products segment markets and distributes e-cigarettes, e-liquids, vaporizers, and other products without tobacco and/or nicotine. It also distributes various assortments of vaping related products to non-traditional retail outlets through VaporBeast, Vapor Shark, Vapor Supply, and IVG; and various vaping related products to individual consumers through Shark, Vapor World, and VaporFi branded retail outlets, as well as through online platforms. The company sells its products under the Zig-Zag, Beech-Nut, Stoker’s, Trophy, VaporBeast, Vapor Shark, VaporFi, Havana Blossom, Durango, Tequila Sunrise, Fred’s Choice, Old Hillside, Our Pride, Red Cap, Tennessee Chew, Big Mountain, Springfield Standard, Snake River, DirectVapor, and SouthBeachSmoke brands. It sells its products to wholesale distributors and retail merchants in the independent and chain convenience store, tobacco outlet, food store, mass merchandising, drug store, and non-traditional retail channels. The company was formerly known as North Atlantic Holding Company, Inc. and changed its name to Turning Point Brands, Inc. in November 2015. Turning Point Brands, Inc. was incorporated in 2004 and is headquartered in Louisville, Kentucky. Turning Point Brands, Inc. is a subsidiary of Standard Diversified Inc.

Details
Name: Turning Point Brands, Inc.
TPB
Exchange: NYSE
Founded: 2004
$1,003,565,474
19,589,410
Website: http://www.turningpointbrands.com
Address: Turning Point Brands, Inc.
5201 Interchange Way,
Louisville,
Kentucky, 40229,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TPB Voting Common Stock New York Stock Exchange US USD 11. May 2016
DB 0T5 Voting Common Stock Deutsche Boerse AG DE EUR 11. May 2016
Number of employees
Current staff
Staff numbers
520
Turning Point Brands employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 00:57
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/05/02
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.