TPB - Turning Point Brands: Stable Business With Great Cash Flow Yield

2024-05-22 09:05:49 ET

Summary

• Turning Point Brands manufactures and sells tobacco-related products such as rolling papers, chewing tobacco, and has more recently started selling nicotine pouches.
• The company has had negative revenue growth in recent years, but the scaling FRE nicotine pouch brand could revitalize growth.
• The CDS segment's revenues have turned dire, but as the segment scales down, it will drag down total revenues less in the future.
• With the current stock price, Turning Point Brands has a great and stable cash flow yield, making the stock a potentially attractive investment.

Turning Point Brands ( TPB ) manufactures and sells rolling papers, cigars, moist snuff tobacco, chewing tobacco, and other tobacco/vape related products through brands such as Zig-Zag, Stoker’s, and multiple other names. In addition, the company now sells nicotine pouches through the FRE brand and nicotine infused cotton through the Cotton Mouth brand, acting in a better-growing market. The company gets the overwhelming majority of revenues from the United States, but also sells internationally....

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