Last Updated: 19 Sep 2024
Executive Summary
Turning Point Brands Inc. (TPB) is a leading manufacturer and distributor of branded consumer products, including tobacco products, alternative nicotine products, and other consumer goods. The company has a strong track record of financial performance, with consistent revenue and earnings growth. TPB's stock price has outperformed the broader market in recent years, and analysts are bullish on the company's long-term prospects.
Company Overview
TPB was founded in 1999 and is headquartered in Louisville, Kentucky. The company's products are sold in over 100 countries worldwide. TPB's tobacco products include cigarettes, cigars, and smokeless tobacco. The company's alternative nicotine products include e-cigarettes, vaporizers, and nicotine pouches. TPB also manufactures and distributes a variety of other consumer goods, such as lighters, ashtrays, and humidors.
Fundamental Analysis
TPB's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.4% over the past five years. TPB's earnings per share (EPS) has grown at a CAGR of 10.2% over the same period. The company's profit margin has remained stable at around 11%.
TPB's balance sheet is strong. The company has a low level of debt and a strong cash position. TPB's return on equity (ROE) is 30.2%, which is well above the industry average.
Technical Analysis
TPB's stock price has been trending higher in recent years. The stock price is currently trading at $39.03, which is above its 50-day and 200-day moving averages. The stock price is also above its 52-week high of $40.59.
TPB's technical indicators are bullish. The relative strength index (RSI) is above 50, which indicates that the stock is overbought. The moving average convergence divergence (MACD) indicator is also bullish.
Short Term Outlook
TPB's stock price is expected to continue to trend higher in the short term. The stock price is currently trading above its key moving averages and its technical indicators are bullish. TPB is also expected to benefit from the continued growth of the alternative nicotine market.
Long Term Outlook
TPB's long-term outlook is also positive. The company is well-positioned to benefit from the growing demand for alternative nicotine products. TPB is also expected to continue to grow its traditional tobacco business.
Analyst Recommendations
Analysts are bullish on TPB's long-term prospects. Two analysts have a "buy" rating on the stock, while zero analysts have a "sell" rating. The average analyst target price is $47.50, which represents a potential upside of 21.7% from the current stock price.
