📊 TPB Key Takeaways
Is Turning Point Brands, Inc. (TPB) a Good Investment?
Despite robust 28.4% revenue growth, net income declined 14.7% YoY signaling operational deterioration. Critical interest coverage of 0.8x combined with negative operating cash flow of -$22.3M makes debt service unsustainable without asset sales or external financing. Abysmal capital returns (ROE 3%, ROA 1.5%) suggest structural profitability challenges.
Turning Point Brands, Inc. Key Strengths (TPB)
- Strong revenue growth of 28.4% year-over-year demonstrates top-line expansion
- Healthy gross margin of 55.0% provides operational foundation
- Exceptional liquidity position with current ratio of 5.87x and cash reserves of $192.4M
TPB Stock Risks: Turning Point Brands, Inc. Investment Risks
- Critical solvency risk: interest coverage ratio of 0.8x indicates inability to cover interest expenses from operating income
- Negative operating cash flow (-$22.3M) and negative free cash flow (-$27.4M) are fundamentally unsustainable
- Deteriorating profitability: net income declined 14.7% despite revenue growth of 28.4% indicating margin compression
- Severely depressed capital efficiency: ROE of 3.0% and ROA of 1.5% show poor returns on invested capital
- EPS growth of 45.3% driven by share buybacks rather than organic earnings improvement masks underlying weakness
Key Metrics to Watch
- Operating cash flow and free cash flow trends - must achieve sustained positive levels
- Interest coverage ratio - must improve above 1.0x to ensure debt service viability
- Operating margin stability - divergence between revenue and net income growth must reverse
- Debt refinancing schedule and covenant compliance
- Return metrics (ROE and ROA) - monitor capital efficiency improvement
Turning Point Brands, Inc. (TPB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.87x 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 |
|---|---|---|---|
| Q1 2026 | $106.4M | $11.7M | N/A |
| 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 |
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 grade of C with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TPB's key strengths?
Claude: Strong revenue growth of 28.4% year-over-year demonstrates top-line expansion. Healthy gross margin of 55.0% provides operational foundation.
What are the risks of investing in TPB?
Claude: Critical solvency risk: interest coverage ratio of 0.8x indicates inability to cover interest expenses from operating income. Negative operating cash flow (-$22.3M) and negative free cash flow (-$27.4M) are fundamentally unsustainable.
What is TPB's revenue and growth?
Turning Point Brands, Inc. reported revenue of $124.3M.
Does TPB pay dividends?
Turning Point Brands, Inc. pays dividends, with $1.7M 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 grade reflects both perspectives for balanced insights.
What is TPB's fundamental grade?
Based on our AI fundamental analysis in June 2026, Turning Point Brands, Inc. has a C grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TPB stock overvalued or undervalued?
Valuation metrics for TPB: ROE of 3.0% (sector avg: 18%), net margin of 9.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is TPB's AI grade for 2026?
Our dual AI analysis gives Turning Point Brands, Inc. a combined C grade 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 $-22.3M, with capital expenditures of $5.1M. FCF margin is -22.0%.
How does TPB compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.4% (avg: 8%), ROE 3.0% (avg: 18%), current ratio 5.87 (avg: 1.5).