NYSE:TPB

Stock Analysis Report

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Market Cap

US$844.0m

Last Updated

2021/06/25 05:26 UTC

Data Sources

Company Financials +

Executive Summary

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. More Details


Snowflake Analysis

Solid track record and good value.


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

Stable Share Price: TPB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TPB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.1%

TPB

1.7%

US Tobacco

1.3%

US Market


1 Year Return

87.7%

TPB

21.5%

US Tobacco

42.4%

US Market

Return vs Industry: TPB exceeded the US Tobacco industry which returned 21% over the past year.

Return vs Market: TPB exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

TPBIndustryMarket
7 Day5.1%1.7%1.3%
30 Day1.5%-6.2%2.8%
90 Day-15.3%-8.0%7.2%
1 Year88.7%87.7%30.8%21.5%44.7%42.4%
3 Year41.4%38.8%4.0%-16.1%64.6%54.4%
5 Year350.3%339.7%-5.6%-29.6%126.8%101.3%

Long-Term 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

Valuation

Is Turning Point Brands undervalued compared to its fair value and its price relative to the market?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPB ($42.69) is trading below our estimate of fair value ($75.61)

Significantly Below Fair Value: TPB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TPB is poor value based on its PE Ratio (20.4x) compared to the Global Tobacco industry average (14.8x).

PE vs Market: TPB is poor value based on its PE Ratio (20.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: TPB is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: TPB is good value based on its PB Ratio (6.7x) compared to the US Tobacco industry average (10.2x).


Future Growth

How is Turning Point Brands forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPB's forecast earnings growth (21.4% per year) is above the savings rate (2%).

Earnings vs Market: TPB's earnings (21.4% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: TPB's revenue (4.6% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: TPB's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPB has high quality earnings.

Growing Profit Margin: TPB's current net profit margins (9.6%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: TPB's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: TPB's earnings growth over the past year (244.3%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: TPB earnings growth over the past year (244.3%) exceeded the Tobacco industry 4.4%.


Return on Equity

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


Financial Health

How is Turning Point Brands's financial position?


Financial Position Analysis

Short Term Liabilities: TPB's short term assets ($297.2M) exceed its short term liabilities ($61.2M).

Long Term Liabilities: TPB's short term assets ($297.2M) do not cover its long term liabilities ($441.1M).


Debt to Equity History and Analysis

Debt Level: TPB's debt to equity ratio (343.9%) is considered high.

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

Debt Coverage: TPB's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: TPB's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPB's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: TPB's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: TPB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TPB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TPB is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Larry Wexler (68 yo)

12yrs

Tenure

US$2,226,187

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 ($USD2.23M) is about average for companies of similar size in the US market ($USD2.39M).

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


Leadership Team

Experienced Management: TPB's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: TPB's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Turning Point Brands, Inc.
  • Ticker: TPB
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$843.952m
  • Shares outstanding: 19.06m
  • Website: https://www.turningpointbrands.com

Number of Employees


Location

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

Listings


Biography

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Product...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/25 05:26
End of Day Share Price2021/06/24 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.