(TPB) Turning Point Brands - Ratings and Ratios

Turning Point Brands, Inc. (NYSE:TPB) is a leading manufacturer, marketer, and distributor of branded consumer products, primarily in the tobacco and cannabis accessories sectors. Headquartered in Louisville, Kentucky, the company operates through two core segments: Zig-Zag Products and Stokers Products. The Zig-Zag Products division specializes in rolling papers, tubes, finished cigars, make-your-own cigar wraps, lighters, and other smoking accessories under the iconic Zig-Zag brand. This segment also includes a growing portfolio of cannabis accessories, capitalizing on the expanding legal cannabis market. The Stokers Products division focuses on moist snuff tobacco and loose-leaf chewing tobacco, marketed under well-known brands such as Stokers, FRE, Beech-Nut, Durango, Trophy, and Wind River. These products are distributed through a robust network of wholesale distributors and retail merchants, reaching independent and chain convenience stores, tobacco outlets, food stores, mass merchandisers, drug stores, and non-traditional retail channels across the U.S. and Canada.

The company, originally founded in 1988 as North Atlantic Holding Company, Inc., rebranded to Turning Point Brands, Inc. in November 2015 to reflect its strategic focus on innovation and growth in the tobacco and alternative products space. With a market capitalization of $1.054 billion, Turning Point Brands has established itself as a key player in the tobacco industry, leveraging its strong brand portfolio and distribution capabilities to maintain market share. Its financial performance is underpinned by a return on equity (RoE) of 20.90%, indicating efficient profitability relative to shareholder equity. However, with a price-to-book (P/B) ratio of 5.73, investors may be pricing in expectations of future growth.

From a technical perspective, TPBs stock has shown upward momentum, with its last price of $63.68 exceeding its 20-day ($58.19) and 50-day ($60.30) simple moving averages (SMA). The 200-day SMA of $52.58 further reinforces the bullish trend. The average true range (ATR) of 2.22 suggests moderate volatility. On the fundamental side, the forward P/E ratio of 18.80, compared to the current P/E of 23.46, signals that analysts anticipate earnings growth. The price-to-sales (P/S) ratio of 2.99 aligns with industry norms for consumer staples, while the RoE of 20.90% highlights strong operational efficiency. Average daily trading volume of 147,802 shares reflects moderate liquidity.

Forecast: Based on the convergence of technical momentum and favorable fundamental metrics, TPB is expected to maintain its upward trajectory in the near term. The stocks recent price action above key SMAs suggests continued bullish sentiment. The forward P/E ratio indicates analyst confidence in future earnings growth, supported by the companys strong brand portfolio and distribution network. However, the high P/B ratio may present a headwind if growth expectations are not met. Overall, Turning Point Brands is well-positioned to capitalize on its established market presence and evolving consumer preferences in the tobacco and cannabis spaces.