Will retail investors buy Tupperware Brands September?
 | By Aina Ster | Macroaxis Story |
Tupperware Brands (TUP), a key player in the Household Goods sector within the Consumer Cyclical category, has shown a significant volatility in its stock performance throughout September. The company's market value stood at $3.67, a stark contrast to its real value of $4.58, indicating a potential undervaluation. The overall consensus among analysts is to 'Hold' the stock, with one analyst maintaining this position. The analyst target price estimated value stands at $8, a significant leap from the current market value. However, it's important to note the possible downside price of 0.04, which suggests a potential risk. On the brighter side, the possible upside price is a whopping $22.68, which is a testament to the stock's potential. The naive expected forecast value for TUP is $5.51, hinting at a promising future. The company's fiscal year ends in December, and with two estimates from analysts, the lowest and highest estimated target prices both stand at $8. Despite the volatility, TUP's hype value of 2.22 suggests that the stock is still garnering significant attention in the market. The majority of equities exhibit less volatility than Tupperware, and they are projected to yield higher returns over the next 90 days. While many risk-takers are increasingly venturing into the household durables sector, some investors are not entirely satisfied with the current volatility of Tupperware Brands. We will delve into the risks associated with taking a position in Tupperware Brands at this juncture. The latest risk factors associated with Tupperware may influence the stock's value, as we currently assess Tupperware Brands to be undervalued. The actual value is nearing $4.58 per share.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
Tupperware Brands Corporation has approximately $110.1 million in cash, with a positive cash flow from operations of $53.2 million. This equates to a cash-per-share (CPS) ratio of 2.61. The company has a performance score of 14 on a scale of zero to a hundred. Tupperware Brands has a beta of 3.6322, indicating a somewhat significant risk relative to the market. This suggests that as the market rises, the company is likely to outperform it. However, if the market experiences negative returns, Tupperware Brands is likely to underperform.
While it's important to monitor Tupperware Brands' current price movements, it's also crucial to consider the company's historical equity returns. Our approach to evaluating the future potential of any stock involves a comprehensive analysis of the business, including all available fundamental and technical indicators.
Tupperware Brands has an expected return of 3.23. To assess whether this return will be sustainable in the future, we have identified twenty-one different technical indicators. These can assist in determining if the expected returns are sustainable. For further analysis of future returns on Tupperware Brands, consider using the company's information ratio and downside variance.
Broadened assessment of Tupperware
Tupperware Brands (TUP) stock has demonstrated significant volatility in September, which can be both a risk and an opportunity for investors. The stock's Coefficient of Variation stands at a high 596.39, indicating a substantial level of risk relative to the return. The Mean Deviation, another measure of volatility, is 10.05, further highlighting the stock's unpredictable nature. However, the stock's Total Risk Alpha, a measure of the difference between the returns one would expect from a risk-free investment and TUP's actual returns, is 1.67. This suggests that the stock has the potential to outperform risk-free investments, despite its high volatility. Therefore, while TUP's high volatility may deter risk-averse investors, those willing to tolerate higher levels of risk may find TUP an attractive investment opportunity. Volatility is a rate at which the price of Tupperware Brands or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Tupperware Brands may increase or decrease. In other words, similar to Tupperware's beta indicator, it measures the risk of Tupperware Brands and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tupperware Brands fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring Tupperware Brands on a daily basis if you are holding a position in it. Tupperware Brands is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Tupperware Brands stock to be traded above the $1 level to remain listed. If Tupperware Brands stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Tupperware Brands's Liquidity
Tupperware Brands financial leverage refers to using borrowed capital as a funding source to finance Tupperware Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tupperware Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Tupperware Brands' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Tupperware Brands' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Tupperware Brands's total debt and its cash.
Detailed Outlook On Tupperware Brands
The company reported the last year's revenue of 1.31 B. Reported Net Loss for the year was (28.4 M) with profit before taxes, overhead, and interest of 836.4 M. As we delve into the performance of Tupperware Brands (TUP) in September, several key data points paint a comprehensive picture of its volatility. With a Total Risk Alpha of 1.67 and a Beta of 2.15, Tupperware reveals a high level of risk relative to the market. The company's standard deviation of 16.63 further underscores this volatility. However, TUP's risk-adjusted performance of 0.12 and a Market Risk Adjusted Performance of 0.77 suggest that the company has been somewhat successful in delivering returns that compensate for the risk it undertakes. The company's Information Ratio of 0.1644 also indicates that it has outperformed its benchmark index on a risk-adjusted basis.Tupperware's financial health is a mixed bag. The company's total assets stand at $952.2 million, while its total debt is at $705.4 million, resulting in a high debt to equity ratio of 337.50%. Additionally, the probability of bankruptcy is 26.19%, which may be a cause for concern among investors. On the flip side, Tupperware's shares outstanding are 44.48M, with 60.81% owned by institutions, and 11.20% owned by insiders, demonstrating strong institutional support. The company's revenue of $1.31 billion and a gross profit of $836.4 million also provide some reassurance about its financial stability. In conclusion, while Tupperware's high volatility and debt levels may be a red flag for risk-averse investors, its strong institutional backing and satisfactory performance metrics may appeal to those with a higher risk appetite. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Tupperware Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.