Turning Point Brands Inc. Common Stock (TPB)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Turning Point Brands as a consumer-defensive tobacco-products company with recognizable Zig-Zag and Stoker's brands. Brand and distribution can be a modest moat, but tobacco-adjacent regulation and shifting consumer habits limit pricing power. The filed record shows growth: FY2025 revenue was $463.1M and net income $58.2M, or diluted EPS $3.11, versus FY2024 revenue $360.7M, net income $39.8M, EPS $2.14, and FY2023 revenue $325.1M, net income $38.5M, EPS $2.01. However, recent profitability weakened: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $143.0M, net income $3.6M, diluted EPS $0.18, compared with fiscal Q2 2025 revenue $116.6M, net income $14.5M, diluted EPS $0.79. Sales rose, but profit fell hard. FairStock's Lynch category is STALWART, based on filed annual results: profit 8.8% a year over five years, revenue 2.7%, which suggests steadiness, not hypergrowth. Financial health is mixed. FairStock calculations as of the 2026-10-13 close of $55.25 show P/E 24.02, P/B 2.58, ROE 17.57%, ROCE 5.76%, D/E 0.68, FCF yield 1.8%, EV/EBITDA 11.26, Piotroski 6/9, and Altman Z 2.81. The Graham Number is $33.32, leaving a negative margin of safety of -65.82%. I want a bargain; here I see a fair-to-full price for a business with uneven recent earnings. The 52-week range $54.69-$146.90 shows how much sentiment has changed. I would require clearer profit recovery and stronger cash generation before calling it cheap.

In plain English: Turning Point Brands sells branded tobacco-related consumer products, including Zig-Zag rolling papers and Stoker's products. The company has grown sales over time, but its latest reported quarter showed a sharp drop in profit, and the stock price looks expensive compared with what the company currently earns and owns. Overall, it looks like a decent business with a demanding price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer