One-glance verdict
Undervalued
$0.42 our estimate vs market $0.07
83% below our estimate, below the bear case
Fundamentals snapshot
VPR Brands, LP
VPRB · OQB · Consumer Defensive · Tobacco
Current price
$0.07
52-week range
$0.01 - $0.14
Market cap
$6.42M
Balance sheet
Healthy
-7.86x Concerning
Net cash $1.74M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 165.0% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Reward Trades at 3.5x P/E vs peer median 7.8x (54.9% cheaper).
- Risk Operating margin compressed from -3.9% to -47.3% over 3 years.
What this company does
VPR Brands, LP
VPR Brands makes and sells products for smoking and vaping, including electronic cigarettes, vaporizers for oils and herbs, and uniquely designed pocket lighters. The company earns money by distributing these goods under brand names like HoneyStick and DISSIM to a wide range of sellers, including wholesalers (businesses that buy in bulk to resell to other stores) and local shops. This matters because the company's success is closely tied to consumer trends and changing regulations in the vaping and cannabis markets.
How the company got here
Founded in 2003 and originally known as Soleil Capital L.P., the company changed its name to VPR Brands, LP in 2015. A key part of its history involves its CEO, Kevin Frija, who was previously the CEO of one of the first publicly traded e-cigarette companies, Vapor Corp. In 2016, VPR Brands acquired the brands and wholesale business from Vapor Corp. This move marked a significant pivot for the company towards the cannabis market, away from a primary focus on e-cigarettes. The company has since focused on innovation and holds key patents for vaping technology, which it actively develops and defends.
What it actually does
VPR Brands designs, creates, and sells a variety of products related to vaping and smoking. Think of them as a company that makes the devices and accessories people use for e-cigarettes, cannabis, and even traditional smoking. They sell their products through many channels, including directly to stores, through distributors (companies that buy products in bulk to resell), and online. A significant part of their business also involves licensing their intellectual property (patents and trademarks that protect their unique inventions and brand names), allowing other companies to use their technology for a fee.
Vaporizers and E-Cigarettes
This is a core part of the business, where the company makes and sells devices for both the nicotine and cannabis markets. Their flagship brand is HoneyStick, which offers vaporizers for essential oils, concentrates, and dry herbs. They also have other brands like ELF and Krave for vaporizers and electronic cigarettes. This segment earns money by selling these devices to wholesalers, retailers, and directly to consumers online.
CBD and Hemp Products
Under the brand name Goldline, VPR Brands offers products derived from hemp, specifically cannabidiol (CBD). CBD is a compound found in cannabis that doesn't produce a high and is often used for wellness purposes. This part of the company caters to the growing market for legal cannabis-related products. They make money by selling these Goldline products through their various sales channels, including dispensaries (stores that sell cannabis products).
Lighters and Smoking Accessories
The company also has a presence in the more traditional smoking accessories market with its DISSIM brand of pocket lighters. This shows a diversification (spreading out their business to not rely on just one type of product) into related, but distinct, product categories. This segment generates revenue (the total amount of money a company brings in from its sales) from the sale of these lighters. The acquisition of the DISSIM brand in 2021 is an example of how they expand their product offerings.
Intellectual Property Licensing
A key way VPR Brands makes money is by licensing its technology to other companies. They hold important patents, like one for 'auto-draw' technology in e-cigarettes, which allows a user to vape without pressing a button. Other companies pay VPR Brands royalties (a percentage of their sales) to use this patented technology in their own products. This is a significant business strategy for the company and a source of revenue that is separate from selling their own physical products.
What management is betting on now
The company's leadership is focused on expanding its product lines, especially within the growing cannabis market. A major priority is enforcing their patents and trademarks, which includes taking legal action against companies they believe are using their technology without permission and securing licensing deals that provide ongoing payments. They are also looking for new opportunities to acquire or develop new brands and technologies through an initiative called VPR Ventures. This strategy aims to build future growth by investing the money they make across their business into new intellectual property and strategic assets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$703.77K
Net income
$-353.45K
Diluted EPS
0.00
Operating cash flow
$-537.89K
Free cash flow
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Sources
Revenue
$580.07K
Net income
$1.94M
Diluted EPS
0.02
Operating cash flow
$2.57M
Free cash flow
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Sources
Revenue
$846.06K
Net income
$-134.57K
Diluted EPS
-0.01
Operating cash flow
$-391.69K
Free cash flow
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Sources
Revenue
$807.06K
Net income
$-449.75K
Diluted EPS
0.00
Operating cash flow
$-156.82K
Free cash flow
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Sources
Revenue
$1.03M
Net income
$-321.00K
Diluted EPS
0.00
Operating cash flow
$-248.97K
Free cash flow
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Sources
Revenue
$933.33K
Net income
$-290.86K
Diluted EPS
0.00
Operating cash flow
$-323.74K
Free cash flow
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Sources
Revenue
$945.50K
Net income
$-355.45K
Diluted EPS
0.00
Operating cash flow
$24.79K
Free cash flow
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Sources
Revenue
$1.44M
Net income
$-166.88K
Diluted EPS
0.00
Operating cash flow
$344.00K
Free cash flow
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Is it cheap or expensive?
Fair value $0.42 vs current price $0.07
Our most-likely fair value is $0.42 a share — about 498.3% above today's price of $0.07, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.7M - more cash than debt. Interest coverage -7.9x.
Net debt
$-1.74M
Interest coverage
-7.86x
VPR Brands, LP's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
VPRB
BASELINE
VPR Brands, LP
Total debt $391.69K Interest coverage -7.86x This is the baseline the peer rows are being compared against.
Total debt $4.14M Interest coverage -87.11x Neither company has much profit cushion over interest right now.
Total debt $310.67M Interest coverage 3.76x This peer still has a real interest-payment cushion, while VPRB does not.
Total debt $1.75M Interest coverage -7.85x Neither company has much profit cushion over interest right now.
Total debt $0.00 Interest coverage -132.24x Neither company has much profit cushion over interest right now.
Total debt $36.49M Interest coverage 0.59x This peer still has a real interest-payment cushion, while VPRB does not.
What you should know
The case for and against VPRB
3 Rewards
1 Risk
Rewards
-
Returns 165.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 2/10 years.
-
Trades at 3.5x P/E vs peer median 7.8x (54.9% cheaper).
Risks
-
Operating margin compressed from -3.9% to -47.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
3.50x
Forward P/E
—
P/B
5.83x
P/S
2.19x
EV/EBITDA
-3.31x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
25.1%
Operating margin
-47.3%
Net margin
34.1%
ROE
165.0%
ROA
-38.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.35x
Current ratio
1.56x
Quick ratio
1.21x
Total debt
$391.69K
Total cash
$2.14M
Growth
How the business has been compounding
Revenue TTM
$2.94M
Revenue 5Y CAGR
-12.7%
EPS TTM
0.02
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.49M
Free CF TTM
$-1.14M
FCF margin
-38.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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