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1. Company Snapshot

1.a. Company Description

Turning Point Brands, Inc., together with its subsidiaries, manufactures, markets, and distributes branded consumer products.The company operates through three segments: Zig-Zag Products, Stoker's Products, and NewGen Products.The Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products under the Zig-Zag brand.


The Stoker's Products segment manufactures and markets moist snuff tobacco and loose-leaf chewing tobacco products under the Stoker's, Beech-Nut, Durango, Trophy, and Wind River brands.The NewGen Products segment markets and distributes cannabidiol isolate, liquid vapor products, and other products without tobacco and/or nicotine to individual consumers through VaporFi B2C online platform, as well as non-traditional retail through VaporBeast.It sells its products to wholesale distributors and retail merchants in the independent and chain convenience stores, tobacco outlets, food stores, mass merchandising, and drug stores.


The company was formerly known as North Atlantic Holding Company, Inc.and changed its name to Turning Point Brands, Inc.in November 2015.


Turning Point Brands, Inc.was founded in 1988 and is headquartered in Louisville, Kentucky.

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1.b. Last Insights on TPB

Turning Point Brands' recent performance was driven by the successful launch of Alp nicotine pouches in December, which accelerated momentum in the company's business. The introduction of smoke-free products aligns with health trends and regulatory shifts, positioning the company for growth. Additionally, the company's restructuring efforts, including distancing itself from the CDS segment, are expected to improve profitability.

1.c. Company Highlights

2. Turning Point Brands' Q3 2025 Earnings: A Strong Performance

Turning Point Brands reported a robust third quarter, with revenue increasing 31% to $119 million, driven by a significant 628% year-over-year growth in white nicotine pouch sales, which contributed $36.7 million to the total revenue. Adjusted EBITDA rose 17% to $31.3 million, and the company raised its full-year adjusted EBITDA guidance to $115 million to $120 million. Earnings per share (EPS) came in at $1.05, beating analyst estimates of $0.81.

Publication Date: Nov -21

📋 Highlights
  • ...<b>... Description</li>. Double-check for any typos in numbers. Alright, that should cover the five key points as requested. </think> <li><b>Revenue Growth:: Total revenue rose 31% to $119 million, with Modern Oral contributing $36.7 million.
  • EBITDA Expansion:: Adjusted EBITDA increased 17% to $31.3 million, prompting a raised full-year guidance to $115–$120 million.
  • White Pouch Success:: White nicotine pouch sales surged 628% YoY and 22% sequentially, driving Stoker’s revenue to $74.8 million (+81%).
  • Capital Raise:: $100 million raised via ATM program at $98.59/share, earmarked for Modern Oral growth and PMTA investments.
  • Margin Dynamics:: Stoker’s gross margins exceeded 60% due to D2C mix, though tariffs may pressure margins short-term.

Segment Performance

The company's Stoker's segment saw revenue grow 81% to $74.8 million, with looseleaf and MST sales increasing 4% and 6%, respectively. In contrast, Zig-Zag revenue declined 11% to $44.2 million. The growth in Stoker's segment was largely driven by the 628% increase in Modern Oral revenue, which is a key area of focus for the company.

Growth Initiatives and Guidance

Turning Point Brands is investing heavily in its Modern Oral business, with plans to expand its sales force, improve its online presence, and build out U.S. manufacturing to improve profitability and mitigate supply chain risks. The company has raised $100 million in gross proceeds under its at-the-market offering program and expects to deploy this capital across high-return opportunities to accelerate growth. The company has also increased its anticipated total Modern Oral sales range to $125 million to $130 million.

Valuation and Outlook

With a P/E Ratio of 32.46 and an EV/EBITDA ratio of 19.35, the company's valuation appears to be pricing in significant growth expectations. The company's ROE of 22.83% and ROIC of 11.57% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate revenue growth of 11.0% next year, which may be achievable given the company's strong performance in the Modern Oral category and its plans to expand its sales infrastructure.

Margin Profile

The company's gross margins in the Stoker's segment are above 60% due to a favorable mix, with a higher D2C mix in Modern Oral. However, the company expects some compression on margins in the short term due to tariffs. The company's focus on building brand connection with consumers and being mindful of how it spends against the funnel is expected to drive growth and profitability.

3. NewsRoom

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Turning Point Brands (NYSE:TPB) vs. Ispire Technology (NASDAQ:ISPR) Head-To-Head Survey

Dec -04

Source: defenseworld.net

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Should Investors Buy Turning Point Brands as Prospect Capital Doubles Down on the Stock?

Dec -02

Source: fool.com

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Franklin Resources Inc. Reduces Holdings in Turning Point Brands, Inc. $TPB

Dec -01

Source: defenseworld.net

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Boston Partners Has $1.02 Million Stock Position in Turning Point Brands, Inc. $TPB

Dec -01

Source: defenseworld.net

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American Century Companies Inc. Sells 55,833 Shares of Turning Point Brands, Inc. $TPB

Nov -29

Source: defenseworld.net

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This Small-Cap Consumer Stock Has Landed New Institutional Backing as Shares Surge 60%

Nov -27

Source: fool.com

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Bank of New York Mellon Corp Boosts Holdings in Turning Point Brands, Inc. $TPB

Nov -22

Source: defenseworld.net

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Is Turning Point Brands Stock a Buy After Investment Firm Cannell Capital Raises Its Stake to Nearly $20 Million?

Nov -15

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.75%)

6. Segments

Zig-Zag Products

Expected Growth: 2%

Zig-Zag Products' 2% growth is driven by increasing demand for rolling papers and cones, particularly among younger generations and cannabis users. Strong brand recognition, innovative products, and strategic partnerships also contribute to growth. Additionally, the company's focus on e-commerce and expanding distribution channels enhance its market reach, further fueling growth.

Stoker's Products

Expected Growth: 3%

Stoker's Products, a subsidiary of Turning Point Brands, Inc., exhibits 3% growth driven by increasing demand for alternative smoking products, expanding distribution channels, and strategic marketing efforts. Additionally, the company's focus on innovation, such as the introduction of new flavors and products, contributes to its growth momentum.

Creative Distribution Solutions

Expected Growth: 4%

Creative Distribution Solutions from Turning Point Brands, Inc. achieves 4% growth driven by increasing demand for e-vapor products, strategic partnerships, and expansion into new markets. Additionally, the company's focus on innovation, product diversification, and efficient logistics management contribute to its growth momentum.

7. Detailed Products

Zig-Zag Rolling Papers

A brand of rolling papers and accessories, offering a range of products for rolling and smoking tobacco and other herbs.

Stoker's MST

A brand of moist snuff tobacco products, offering a range of flavors and nicotine levels.

Beech-Nut E-Liquids

A brand of e-liquids and vaping products, offering a range of flavors and nicotine levels.

NewGen Products

A brand of alternative nicotine products, including e-liquids, vaping devices, and heat-not-burn products.

8. Turning Point Brands, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Turning Point Brands, Inc. operates in the Other Tobacco Products industry, which has a moderate threat of substitutes. While there are some alternatives to traditional tobacco products, such as e-cigarettes and heat-not-burn products, they are not yet widely adopted and are subject to varying regulations.

Bargaining Power Of Customers

Turning Point Brands, Inc. has a diverse customer base, including retailers, wholesalers, and distributors. However, the company's customers are not highly concentrated, and the switching costs are relatively low, giving customers some bargaining power.

Bargaining Power Of Suppliers

Turning Point Brands, Inc. relies on a few large suppliers for its tobacco and other raw materials. While the company has some bargaining power due to its size, the suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The tobacco industry has significant barriers to entry, including high regulatory hurdles, significant capital requirements, and established distribution networks. These barriers make it difficult for new entrants to enter the market.

Intensity Of Rivalry

The tobacco industry is highly competitive, with several large players competing for market share. Turning Point Brands, Inc. faces intense competition from established players, as well as from new entrants and alternative products.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.91%
Debt Cost 6.33%
Equity Weight 29.09%
Equity Cost 6.41%
WACC 6.35%
Leverage 243.77%

11. Quality Control: Turning Point Brands, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Turning Point Brands

A-Score: 4.8/10

Value: 1.9

Growth: 5.6

Quality: 6.4

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

98.68$

Current Price

98.68$

Potential

-0.00%

Expected Cash-Flows