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Turning Point BrandsSTU:0T5 -0.87%89 Operating Margin % is 11.69% as of Jun. 2026, which is 43% below its 10-year median of 20.44. GuruFocus rates STU:0T5 with a GF Score™ of 89/100 and a GF Value™ of €75.98 (Fairly Valued). Among 48 Tobacco Products companies, Turning Point Brands ranks better than 62.5% on this metric.
Turning Point Brands (STU:0T5) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Turning Point Brands Operating Margin % Related Terms
Turning Point Brands Operating Margin % Historical Data
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The historical data trend for Turning Point Brands's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:0T5 vs UVV, AIIR, ISPR: Operating Margin % Comparison
For the Tobacco subindustry, Turning Point Brands's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Turning Point Brands Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Turning Point Brands's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Turning Point Brands's Operating Margin % falls into.
Turning Point Brands Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Turning Point Brands's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Turning Point Brands (STU:0T5) has a Operating Margin % of 11.69% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Turning Point Brands and its competitors. This is 43% below median its historical median of 20.44. Over the past decade, Turning Point Brands' Operating Margin % has ranged from 7.52 to 25.52. According to the industry distribution chart, Turning Point Brands ranks #18 out of 48 companies in the Tobacco Products industry, placing it in the top 37.5%.
Is Turning Point Brands' Operating Margin % too high?
Turning Point Brands' current Operating Margin % of 11.69% is 43% below median its 10-year median of 20.44. Over the past 10 years, this metric has ranged from a low of 7.52 to a high of 25.52. The Tobacco Products industry median Operating Margin % is 9.19. Turning Point Brands' value of 11.69% is 27.3% above this industry median. Based on the distribution chart, Turning Point Brands ranks #18 out of 48 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Turning Point Brands has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Turning Point Brands' Operating Margin % compare to UVV and AIIR?
According to the Tobacco Products industry distribution chart, Turning Point Brands ranks #18 out of 48 companies for Operating Margin %. This puts Turning Point Brands in the upper half of its industry. The industry median Operating Margin % is 9.19. Turning Point Brands' value of 11.69% is 27.3% above this benchmark. Historically, Turning Point Brands' own Operating Margin % has ranged from 7.52 to 25.52 over the past decade. While the company's 10-year median is 20.44 vs. the industry median of 9.19, Turning Point Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.19, based on 48 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Turning Point Brands's current Operating Margin % of 11.69% is 27.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Turning Point Brands and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Turning Point Brands's current Operating Margin % is 11.69%, which is 43% below median its own 10-year median of 20.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Turning Point Brands stock overvalued right now?
Based on GuruFocus' analysis, Turning Point Brands (STU:0T5) is currently considered Fairly Valued. The stock's GF Value™ is €75.98, compared to a current price of €73.85 — trading 2.8% below its estimated fair value. The current Operating Margin % is 11.69%, which is 43% below median its 10-year median of 20.44 and 27.3% above the Tobacco Products industry median of 9.19. Turning Point Brands' overall GF Score™ is 89/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Turning Point Brands (STU:0T5), the current Operating Margin % is 11.69% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Turning Point Brands (STU:0T5) Overvalued in 2026?
Based on GuruFocus' analysis, Turning Point Brands stock appears to be undervalued.
The current stock price of €73.85 is trading 2.8% below its estimated GF Value™ of €75.98.
GuruFocus considers Turning Point Brands to be Fairly Valued.
Key valuation signals for STU:0T5:
Operating Margin %: 11.69% (43% below median its 10-year median of 20.44)
GF Value™: €75.98 vs. price of €73.85 (2.8% below fair value)
Industry Position: 27.3% above the Tobacco Products median (#18 of 48)
No single metric tells the full story. See the STU:0T5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Turning Point Brands Inc operates as a manufacturer, marketer, and provider of consumer products that include Other Tobacco Products (OTP) in the U.S. The company offers a wide variety across the OTP spectrum, including moist snuff tobacco (MST), loose-leaf chewing tobacco, premium cigarette papers, make- your-own (MYO) cigar wraps, cigars, liquid vapor products, and tobacco vaporizer products. It operates in two segments, namely Zig-Zag products and Stoker's products segment. The company generates maximum revenue from the Zig-Zag products segment.
89GF Score
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