Turning Point Brands, Inc. (TPB) stock analysis

P/E above its 5-year median

Turning Point Brands's P/E of 42.3 is above its own 5-year median of 26.9.

P/E above the industry

Turning Point Brands's P/E of 42.3 is above the Consumer staples median of 23.3.

EV/EBITDA above its 5-year median

Turning Point Brands's EV/EBITDA of 21.2 is above its 5-year median of 10.9.

P/S above the industry

Turning Point Brands's price-to-sales of 2.19 is above the Consumer staples median of 0.72 (book value is negative, so we use sales).

Trading above fair value

The share price of $58.81 is above our fair value estimate of $34.31.

Margin of safety under 20%

The price is 71.4% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 13.0% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 69.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -47.7% over the last twelve months, against a 5-year average of 8.8% a year.

Growing faster than the industry

Revenue grew 23.8% over the last twelve months; the Consumer staples median is 3.7%.

Guidance lowered

Turning Point Brands lowered its full year Modern Oral Net Sales outlook on Aug 4, 2026.

Gross margin improving

Gross margin was 58.4% over the last twelve months, against 57.2% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 8.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.1% over the last twelve months, against a 5-year average of 10.1%.

Net margin above the industry

Turning Point Brands's net margin of 5.1% is above the Consumer staples median of 1.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 11.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.3 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 5.83 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.56; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Turning Point Brands paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Turning Point Brands yields 0.5%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 22.8% of net income.

Covered by free cash flow

Dividends take 26.2% of free cash flow.