Turning Point Brands (TPB) AI Stock Analysis

• Market Cap: $1.64B
• Dividend Yield: 0.33%
• Average Volume (3M): 372.25K
• Price to Earnings (P/E): 38.1
• Beta (1Y): 0.67
• Revenue Growth: 4.44%
• EPS Growth: -5.94%
• Country: US
• Employees: 310
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 0.79
• Shares Outstanding: 18,024,761
• 10 Day Avg. Volume: 313,811
• 30 Day Avg. Volume: 372,248
• PEG Ratio: -6.26
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 2.96
• P/FCF Ratio: 17.07
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.35
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 16.99
• 1Y Price Target: $106.50
• Price Target Upside: 19.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: $94.00 ▲(5.80% Upside)

Turning Point Brands' overall score reflects a mix of strong earnings call performance and strategic growth initiatives, offset by high valuation and technical indicators suggesting potential bearish trends. Financial performance shows stability but highlights the need for improved operational efficiency and leverage management.

Positive Factors

Modern Oral Segment Growth

The significant growth in the Modern Oral segment indicates strong market demand and positions TPB well in the expanding alternative nicotine market.

Increased Guidance

Raising guidance reflects management's confidence in sustained business growth and operational efficiency, which can enhance investor trust and long-term performance.

Stoker's Segment Performance

Strong performance in the Stoker's segment highlights successful product positioning and consumer loyalty, supporting future revenue stability.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Gross Margin Pressures

Declining gross margins in key segments can erode profitability, necessitating strategic adjustments to maintain competitive pricing and cost management.

Zig-Zag Revenue Decline

The decline in Zig-Zag revenue suggests challenges in maintaining market share, which could affect overall revenue growth and brand strength.

Turning Point Brands Business Overview & Revenue Model

Company Description

Turning Point Brands, Inc. (TPB) is a prominent player in the tobacco and consumer products sectors, focusing on the manufacture and distribution of alternative products that cater to adult consumers. The company operates primarily in three core segments: Smokeless Products, Smoking Products, and New Generation Products. Its well-known brands include Zig-Zag, Stoker's, and a range of CBD products, positioning TPB at the intersection of traditional tobacco and emerging market trends in cannabis and nicotine alternatives.

How the Company Makes Money

Turning Point Brands generates revenue through multiple streams. The company primarily earns from the sale of smokeless tobacco products and smoking accessories, which include rolling papers and other smoking-related items. Its New Generation Products segment, which encompasses vapor and CBD products, has been a significant growth area, capitalizing on the increasing consumer shift towards alternative nicotine delivery systems. TPB also benefits from strategic partnerships with distributors and retailers, enhancing its market reach and product accessibility. Additionally, the company invests in brand development and marketing to strengthen customer loyalty and drive sales across its diverse product lines.

Turning Point Brands Financial Statement Overview

Summary

Turning Point Brands demonstrates solid financial health with strong revenue and profit growth, robust cash flow, and improved equity ratios. However, high leverage remains a concern, requiring careful management to mitigate risks. Overall, the company is well-positioned for future growth, supported by strong operational performance and effective cash management.

Income Statement

Turning Point Brands shows strong profitability with a consistent gross profit margin around 47%, and a solid net profit margin improvement from 2.8% in 2022 to 9% in TTM. Revenue growth is positive, with a 29.2% increase from 2022 to 2024 and a further 29.2% from 2024 to TTM, indicating robust expansion. EBIT and EBITDA margins have remained stable, supporting a strong operational performance.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 1.48 in TTM, reflecting significant leverage, which poses a risk. However, the equity ratio improved to 36% in TTM, indicating better equity health. Return on equity has improved from lows of 10.4% in 2022 to 20.7% in TTM, demonstrating enhanced shareholder returns.

Cash Flow

Operating cash flow is strong relative to net income, with a ratio of 1.46 in TTM. The free cash flow to net income ratio is 1.31 in TTM, indicating robust cash generation. Free cash flow growth is positive, with a 145% increase from 2022 to 2024, albeit a slight decrease to TTM, suggesting overall healthy cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	474.27M	360.66M	405.39M	415.01M	445.47M	405.11M
Gross Profit	232.35M	201.56M	203.24M	205.54M	217.83M	189.64M
EBITDA	93.54M	84.60M	82.69M	40.80M	90.55M	67.52M
Net Income	43.65M	39.81M	38.46M	11.64M	52.06M	38.19M
Balance Sheet
Total Assets	595.79M	493.35M	569.36M	572.11M	601.56M	489.33M
Cash, Cash Equivalents and Short-Term Investments	109.92M	46.16M	117.89M	106.40M	128.32M	41.77M
Total Debt	301.48M	261.27M	377.99M	417.35M	427.51M	306.08M
Total Liabilities	370.96M	302.97M	417.35M	458.73M	467.84M	358.49M
Stockholders Equity	218.58M	187.98M	150.98M	111.64M	131.40M	126.79M
Cash Flow
Free Cash Flow	52.27M	62.44M	61.17M	22.59M	62.06M	37.54M
Operating Cash Flow	60.22M	67.06M	66.88M	30.27M	68.22M	43.68M
Investing Cash Flow	-11.16M	-10.51M	-5.91M	-18.79M	-58.84M	-64.82M
Financing Cash Flow	-81.22M	-128.15M	-49.51M	-43.30M	57.07M	-29.34M

Turning Point Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 88.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TPB, the sentiment is Negative. The current price of 88.85 is below the 20-day moving average (MA) of 89.62, below the 50-day MA of 95.57, and above the 200-day MA of 75.76, indicating a neutral trend. The MACD of -1.87 indicates Negative momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TPB.

Turning Point Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RLX	―	$2.95B	29.44	4.56%	0.33%	61.64%	16.76%
UVV	―	$1.28B	12.52	7.20%	6.26%	4.11%	-15.50%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TPB	―	$1.64B	38.11	26.05%	0.33%	4.44%	-5.94%
ISPR	―	$135.75M	―	-223.84%	―	-16.07%	-155.70%
XXII	―	$5.71M	―	-616.13%	―	-49.46%	99.12%
KAVL	―	$7.10M	―	-68.63%	―	-88.85%	68.28%

Turning Point Brands Corporate Events

Turning Point Brands Reports Strong Q2 2025 Growth

Turning Point Brands, Inc. is a manufacturer, marketer, and distributor of branded consumer products, primarily in the smoking accessories and consumables sector, known for its popular brands such as Zig-Zag and Stoker’s.

Turning Point Brands’ Earnings Call: Strong Growth Amid Challenges

Turning Point Brands Inc. recently held its earnings call, revealing a strong performance marked by significant revenue and EBITDA growth. The company’s success was largely driven by the Modern Oral segment and strategic investments, although challenges were noted in the Zig-Zag segment with revenue declines and gross margin pressures. Despite these challenges, the overall sentiment was positive, with achievements in growth and increased guidance taking center stage.