Liabilities Breakdown
731.2 M
Current Liabilities
724.7 M
Long-Term Liabilities
| Total Liabilities | 1.69 Billion | |
| Current Liabilities | 731.23 Million | |
| Long-Term Liabilities | 724.65 Million |
Will Tupperware Brands (USA Stocks:TUP) debt increase in September
 | By Vlad Skutelnik | Macroaxis Story |
Tupperware Brands (TUP), a key player in the Household Goods industry, has shown significant financial leverage in its recent financial reports. The company's Net Invested Capital stands at a substantial $705.4M, indicating a significant amount of capital invested in the business. However, Tupperware's financial health is somewhat concerning, with Non-Current Liabilities Totaling $811.6M and a Net Debt of $595.3M. This high level of debt could potentially impact the company's ability to generate positive cash flow in the future. Despite these liabilities, Tupperware has managed to maintain a Gross Profit of $836.4M. Unfortunately, the company reported a Net Income loss of $28.4M, which is reflected in the Net Income Applicable To Common Shares showing a loss of $14.2M. The company's current market value is below the Analyst Target Price Estimated Value of $8, with a Valuation Real Value of $4.58. Despite these challenges, Tupperware's Forward Dividend Yield of 0.383 and Dividend Yield of 0.383 could potentially offer some return for investors. However, the financial leverage and negative income numbers indicate a need for caution when considering investment in Tupperware Brands. The forthcoming financial report for Tupperware Brands is anticipated on November 1, 2023. Currently, the stock is witnessing trading activities that are above the average. The Quick Ratio of Tupperware Brands remains relatively stable at present, compared to the previous year. The company reported a Quick Ratio of 0.58 last year. As of August 3, 2023, the Dividend Yield is projected to increase to 0.06, while the Receivables Turnover is expected to decrease to 10.28. Despite the influx of aggressive traders into the household durables sector, Tupperware Brands may not necessarily be your top choice.
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Reviewed by Michael Smolkin
Tupperware Brands' (TUP) current financial position presents a unique opportunity for investors seeking to leverage market volatility. The company's long-term debt stands at a substantial 687.4M, which could potentially increase the risk associated with the investment. However, it's important to consider the company's mean deviation of 10.05 and total risk alpha of 1.67, which indicate a relatively high level of price volatility. This volatility, while potentially risky, also presents opportunities for significant returns for investors who can effectively manage the associated risks. Despite the company's loss of 28.4M from continuing operations, the potential upside of 38.64% suggests that there is room for substantial growth in the company's market value. This potential for growth, combined with the company's high level of volatility, makes Tupperware Brands a potentially lucrative investment for those who are willing to take on a higher level of risk. However, investors should be aware of the company's negative free cash flow of 86.2M, which could limit the company's ability to invest in growth opportunities. In conclusion, while Tupperware Brands' high level of debt and negative free cash flow present certain risks, the company's high level of volatility and potential for growth make it a potentially attractive investment for those seeking to leverage market volatility. However, investors should carefully consider their own risk tolerance and investment objectives before deciding to invest in Tupperware Brands.
Broadened assessment of Tupperware
Tupperware Brands Corporation carries a substantial debt load of 705.4 million, with a debt to equity (D/E) ratio of 337.5. This indicates that Tupperware Brands may struggle to generate sufficient cash to meet all of its financial obligations. The company's current ratio stands at 1.3, suggesting potential difficulties in meeting its financial commitments when they become due. While debt can be beneficial for Tupperware Brands in the short term, problems may arise if the company struggles to repay it, either through raising new capital or generating free cash flow. In such a scenario, Tupperware Brands' shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. However, a more common scenario is for companies like Tupperware Brands to issue additional shares at discounted prices, which dilutes the value of existing shares. In this context, debt can be a superior tool for Tupperware Brands to invest in growth at high rates of return. When evaluating Tupperware Brands' use of debt, it is crucial to consider it in conjunction with the company's cash and equity positions.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 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 entity 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.
Tupperware Brands Corporation (TUP), a player in the Household Goods industry, has been on the radar of investors due to its impressive financial performance. Despite a net loss of $28.4 million from continuing operations, the company's EBITDA stands at a healthy $87.7 million, with a substantial operating income of $63.1 million. The firm's current ratio of 1.33X indicates its ability to meet short-term obligations, reflecting a solid financial structure. TUP has a market capitalization of $163.23 million and a price-to-sales ratio of 0.13X, suggesting that the stock might be undervalued. Despite a negative total stockholder equity of $187.5 million, TUP has a significant net asset value of $952.2 million.This, coupled with its other assets worth $384.3 million, provides a firm backing for its current market value. However, investors should note TUP's high beta of 2.15, indicating higher market volatility. The company also has a high probability of bankruptcy at 26.19%, which could be a potential red flag. The downside variance of 110.82 and semi variance of 74.1 further underline the risk involved. In conclusion, while TUP's financials show strength, potential investors should carefully consider the inherent market risks. Despite the challenges, TUP's undervaluation presents an opportunity for risk-tolerant investors to leverage the potential upside. The company's strong asset base, coupled with its significant market capitalization of $163.23 million, underscores the potential for substantial returns in the long run. .
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