Asset Breakdown
864.2 M
Assets Non Current
Goodwill
406.7 M
Tax Assets
521.9 M
Current Assets
| Total Assets | 1.39 Billion | |
| Current Assets | 521.87 Million | |
| Assets Non Current | 864.19 Million | |
| Goodwill | 171.3 Million | |
| Tax Assets | 406.65 Million |
Will Tupperware Brands (USA Stocks:TUP) be in financial trouble before August?
 | By Gabriel Shpitalnik | Macroaxis Story |
Tupperware Brands (TUP) is facing a challenging financial outlook as we head into August. The company reported a net loss of $28.4M, with total operating expenses standing at a substantial $742.9M. This is in stark contrast to the EBIT of $63.1M, highlighting the company's struggle to manage its costs effectively. Furthermore, Tupperware's net debt stands at $595.3M, which is concerning given the company's negative free cash flow of $86.2M. The company's total revenue is $1.3B, but the cost of revenue is a significant $469.2M, reducing the overall gross profit to $836.4M. The company's total liabilities stand at a high $1.1B, which includes both short term debt of $18M and long term debt of $687.4M. This has resulted in a negative total stockholder equity of $187.5M, indicating a precarious financial position. The company's cash position is also worrisome, with a change in cash of -$153.6M and end period cash flow of $120.2M. The company's total cash from operating activities stands at -$53.2M, indicating a struggle to generate positive cash flow from its core business operations. The forward dividend yield is 0.383, but given the company's financial struggles, investors should be cautious about the sustainability of these dividends. The analyst overall consensus for Tupperware Brands is a 'Hold', with an estimated target price of $8. However, given the company's current financial situation, investors should carefully consider the potential risks before investing. Tupperware Brands is set to announce its earnings today, with the forthcoming quarterly report anticipated on August 2, 2023. The Quick Ratio of Tupperware Brands is currently relatively stable compared to the previous year, with the company reporting a Quick Ratio of 0.58 last year. As of July 17, 2023, the Dividend Yield is projected to increase to 0.06, while the Receivables Turnover is expected to decrease to 10.28. Given the excitement surrounding the household durables sector, it's reasonable to consider Tupperware Brands as a unique alternative. We will analyze why recent price movements of Tupperware Brands suggest a potential rebound in August.
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Reviewed by Michael Smolkin
Tupperware Brands Corporation carries a substantial debt load of $705.4 million, with a debt-to-equity (D/E) ratio of 337.5. This high ratio suggests that Tupperware Brands may struggle to generate sufficient cash to fulfill all its financial obligations. The company's asset utilization ratio, a measure of revenue generated per dollar of assets, stands at 137.11 percent. This implies that Tupperware Brands generates $1.37 for each dollar of assets it holds. An increasing asset utilization ratio indicates that Tupperware Brands is improving its efficiency in using its assets for day-to-day operations.
Broadened assessment of Tupperware
Investing in Tupperware Brands (TUP) comes with significant risk, as indicated by a Total Risk Alpha of -1.1 and a Standard Deviation of 7.57, suggesting high volatility. The company's financial health is worrisome, with Total Stockholder Equity at a loss of 187.5M and a Net Income From Continuing Ops reporting a loss of 28.4M. TUP's financial obligations are also substantial, with Short Long Term Debt Total standing at 705.4M and Total Current Liabilities at 328.1M. Despite these challenges, TUP has a Cash and Short Term Investments balance of 110.1M, which may provide some financial cushion. However, the negative Change In Cash of -153.6M indicates significant cash outflows. Overall, investors should exercise caution when considering TUP. Tupperware Brands financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Tupperware Brands, including all of Tupperware Brands's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Tupperware Brands assets, the company is considered highly leveraged. Understanding the composition and structure of overall Tupperware Brands debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. 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 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.
Understanding Tupperware Total Liabilities
Tupperware Brands liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Tupperware Brands has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Tupperware Brands balance sheet include debt obligations and money owed to different Tupperware Brands vendors, workers, and loan providers. Below is the chart of Tupperware short long-term liabilities accounts currently reported on its balance sheet. You can use Tupperware Brands financial leverage analysis tool to get a better grip on understanding its financial positionHow 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 big decline in price over the last few months for Tupperware Brands created some momentum for retail investors as it was traded today as low as 0.65 and as high as 0.7 per share. The company directors and management failed to add value to investors and position the company supply of money to exploit market volatility in June. However, diversifying your holdings with Tupperware Brands or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 7.31. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Tupperware Brands partners.
As we head into August, Tupperware Brands (TUP) presents an interesting investment perspective. The company, a key player in the Packaging & Containers industry, reported a net asset of $952.2M and EBITDA of $87.7M. However, it's important to note that TUP reported a net income from continuing operations of $28.4M in losses.This is reflected in a negative risk-adjusted performance of -0.06. The company's leverage is also a concern, with total debt standing at $705.4M against a total asset of $952.2M. The net debt stands at $595.3M. Moreover, the company has a current ratio of 1.33X, indicating a relatively balanced financial health. On the positive side, TUP's Price to Earnings to Growth is 1.09X, suggesting the stock may be undervalued. Additionally, the company's shares are significantly owned by institutions (65.55%) and insiders (11.45%), indicating confidence in the company's future prospects. However, with a probability of bankruptcy at 31.31%, investors should approach TUP with caution. .
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