Turning Point Brands, Inc. — Earnings Quality Grade F
TPB · Consumer Defensive
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 11 days
AR growth 167.3% exceeds revenue growth 28.4%
Revenue grew 28.4% but CFFO declined -14.4%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory 12.2% vs COGS 24.9%. Normal
CapEx growth 192.6% is >2x revenue growth 28.4%
SG&A/Gross Profit = 63.9%. Normal
Gross margin 57.1%, change +1.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.99. Profits backed by cash
FCF $0.0B, FCF/NI = 0.75
Accruals ratio = 0.1%. Low accruals
Cash $0.2B covers 72% of debt $0.3B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 59% of equity. Over 50%
Debt/EBITDA = 2.7x. Healthy
Other assets -8.4% vs revenue 28.4%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -1.29 (> -1.78). LIKELY MANIPULATOR
Small-cap context: Beneish M-Score was calibrated on large-caps; small-cap DSO/inventory volatility mechanically inflates it.
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25