📊 TPB Key Takeaways
Is Turning Point Brands, Inc. (TPB) a Good Investment?
Turning Point Brands demonstrates strong operational fundamentals with 28.4% revenue growth, exceptional 57.1% gross margins, and excellent liquidity ($222.8M cash, 5.56x current ratio). However, the alarming 14.7% decline in net income despite robust top-line growth signals deteriorating profitability and underlying operational challenges, compounded by long-term secular decline risks inherent to the tobacco sector.
Why Buy Turning Point Brands, Inc. Stock? TPB Key Strengths
- Strong revenue growth of 28.4% YoY with exceptional 57.1% gross margins indicating pricing power
- Excellent liquidity position with $222.8M cash reserves and 5.56x current ratio; strong balance sheet resilience
- Conservative capital structure with 0.79x debt-to-equity ratio and 6.3x interest coverage providing financial flexibility
- Solid operating margins (20.6%) and positive free cash flow generation of $43.8M
- Diluted EPS growth of 45.3% YoY through likely share buybacks demonstrating shareholder-friendly capital allocation
- Moderate leverage with manageable debt service obligations relative to asset base
TPB Stock Risks: Turning Point Brands, Inc. Investment Risks
- Critical profitability divergence: net income down 14.7% YoY despite 28.4% revenue growth suggests deteriorating unit economics or significant non-operating headwinds
- Tobacco sector faces structural secular decline, regulatory restrictions, and ESG-driven divestment pressure creating long-term revenue headwinds
- Long-term debt of $293.6M is substantial; debt service capability depends on sustained cash generation amid industry headwinds
- Unexplained margin compression despite gross margin strength indicates rising SG&A expenses or one-time charges eroding profits
- Insider activity (7 Form 4 filings in 90 days) lacks clarity on insider confidence in company direction
Key Metrics to Watch
- Operating margin trend and SG&A expense ratio to diagnose source of profitability decline
- Gross margin sustainability and pricing power under volume/product mix changes
- Free cash flow conversion rate and cash generation relative to debt reduction progress
- Revenue growth composition (organic vs. M&A) and market share trends in core brands
- Debt reduction trajectory relative to operating cash flow to assess deleveraging progress
Turning Point Brands, Inc. (TPB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.56x current ratio provides a solid financial cushion.
TPB Profit Margin, ROE & Profitability Analysis
TPB vs Consumer Sector: How Turning Point Brands, Inc. Compares
How Turning Point Brands, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Turning Point Brands, Inc. Stock Overvalued? TPB Valuation Analysis 2026
Based on fundamental analysis, Turning Point Brands, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Turning Point Brands, Inc. Balance Sheet: TPB Debt, Cash & Liquidity
TPB Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Turning Point Brands, Inc.'s revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $2.01 reflects profitable operations.
TPB Revenue Growth, EPS Growth & YoY Performance
TPB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $90.7M | $12.4M | $0.68 |
| Q2 2025 | $93.2M | $13.0M | $0.68 |
| Q1 2025 | $83.1M | $12.0M | $0.63 |
| Q3 2024 | $101.7M | $10.8M | $0.58 |
| Q2 2024 | $105.6M | $9.9M | $0.53 |
| Q1 2024 | $97.1M | $7.6M | $0.41 |
| Q3 2023 | $101.7M | $10.8M | $0.58 |
| Q2 2023 | $102.9M | $5.4M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Turning Point Brands, Inc. Dividends, Buybacks & Capital Allocation
TPB SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Turning Point Brands, Inc. (CIK: 0001290677)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TPB
What is the AI rating for TPB?
Turning Point Brands, Inc. (TPB) has an AI rating of HOLD with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TPB's key strengths?
Claude: Strong revenue growth of 28.4% YoY with exceptional 57.1% gross margins indicating pricing power. Excellent liquidity position with $222.8M cash reserves and 5.56x current ratio; strong balance sheet resilience.
What are the risks of investing in TPB?
Claude: Critical profitability divergence: net income down 14.7% YoY despite 28.4% revenue growth suggests deteriorating unit economics or significant non-operating headwinds. Tobacco sector faces structural secular decline, regulatory restrictions, and ESG-driven divestment pressure creating long-term revenue headwinds.
What is TPB's revenue and growth?
Turning Point Brands, Inc. reported revenue of $463.1M.
Does TPB pay dividends?
Turning Point Brands, Inc. pays dividends, with $5.5M distributed to shareholders in the trailing twelve months.
Where can I find TPB SEC filings?
Official SEC filings for Turning Point Brands, Inc. (CIK: 0001290677) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TPB's EPS?
Turning Point Brands, Inc. has a diluted EPS of $3.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TPB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Turning Point Brands, Inc. has a HOLD rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TPB stock overvalued or undervalued?
Valuation metrics for TPB: ROE of 15.6% (sector avg: 18%), net margin of 12.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy TPB stock in 2026?
Our dual AI analysis gives Turning Point Brands, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TPB's free cash flow?
Turning Point Brands, Inc.'s operating cash flow is $57.4M, with capital expenditures of $13.5M. FCF margin is 9.5%.
How does TPB compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 12.6% (avg: 8%), ROE 15.6% (avg: 18%), current ratio 5.56 (avg: 1.5).