Is TPB a high-quality business?

AlphaMadera's AlphaQuality grade scores Turning Point Brands, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how TPB compares to a Buffett-style quality bar.

What is Turning Point Brands, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to TPB based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes TPB a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

TPB - Turning Point Brands, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $128.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 67.4 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B- 62.8

5yr Avg ROIC 11.2% 66/100
Operating Margin Trend -0.00 pp/yr 55/100

Capital Efficiency

Weight: 15%

B+ 77.7

5yr Avg ROE 11.3% 66/100
5yr Share-Count CAGR -4.4% 98/100

Growth Quality

Weight: 15%

C- 48.6

5yr Revenue CAGR 1.0% 28/100
5yr EPS CAGR 5.4% 57/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

A- 84.6

5yr FCF Margin 13.3% 78/100
5yr FCF/NI Conversion 1.41x 93/100

Balance Sheet

Weight: 20%

A- 81.3

Net Debt / EBITDA 0.74x 88/100
Interest Coverage (EBIT/Int) 4.28x 58/100
Altman Z-Score 4.69 98/100

Stability

Weight: 15%

C- 45.7

EPS Volatility (σ/μ) 0.53 28/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 2 added; 1 trimmed; 1 full exit.

Holders: 3
Avg Δ position: -33.8%
New buys: 0
Full exits: 1

Laffont sold -100%
Cooperman decreased -94%
Greenblatt increased +26%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.