Highlights:

• Tupperware shares are up more than 323.43% since the beginning of 2020
• 50.46% of profit comes from the Asia-Pacific region – some of the world’s most dynamic economies
• The DCF analysis results show that TUP’s stock target price should be around 42.16$

Overview

Tupperware Brands Corporation is a global direct-to-consumer marketer of premium, innovative products across multiple brands and categories through an independent sales force of 3.1 million. It offers design-centric preparation, storage, and serving solutions for the kitchen and home, beauty, and personal care products.

Impact of Loan Debt on Tupperware Stock in 2021

Tupperware shares are up more than 323.43% since the beginning of 2020. The share price has risen from 8.70% to 35.14% on 19th November 2020, attracting more investors’ interest. Together with it, Figure 1 shows that the short-term moving average crosses above the long-term moving average, indicating a buy signal (golden cross).

In addition to that, we should pay attention to Debt to Equity History and Analysis. From Figure 3, we can conclude that TUP’s debt is well covered by operating cash flow by industry average(19.46%).

TUP’s Competitors & Management Effectiveness

Additionally, let’s consider Tupperware with its competitors on average in the market. As has been noted, Chart 1 shows that the company’s net profit in Q3 2020 grew 341.03% year on year. The average growth of competitors exceeded by 85.48%. The company achieved revenue growth of 14.14%, which is 8.87% on average more than its competitors. The company’s market share is 4.52% of the market.

Another key point – Management Effectiveness. An increase in the Receivable Turnover Ratio in 2020 Q3 by 2,34 indicates a decrease in the number of insolvent customers and other sales problems. The growth of inventory turnover by 0.11 in 2020 Q3 indicates that the company sells goods quickly. It means a considerable demand for their products. A low ROA in 2020 Q3 indicates that the company is not making enough income from the use of its assets.

From the information above, we can conclude that despite the difficult conditions of the pandemic, the company is showing satisfactory financial results:

• Net income and revenues exceed the average growth of competitors. 
• Management Effectiveness indicates that the company sells goods quickly, and there is considerable demand for its products.

As Executive Vice Chairman Rich Goodies said in a second-quarter profit and loss statement at the end of July, “Our US and Canadian businesses grew more than 30% in the quarter over the same quarter last year, and we shipped in June more than in any other year month for almost 20 years “. As can be seen, it is possible to make a positive TUP stock prediction in the future.

New Market Opportunities For the Asia-Pacific Region For TUP stock

The firm operates in four regions – Europe, Asia-Pacific, North America, and South America. More revenue comes from the Asia-Pacific region than any other geographic region. The Asia and the Pacific region is home to 60 percent of the world’s population and accounts for more than 40% of world GDP purchasing power parity, and includes some of the world’s most dynamic economies.

 If we consider Figure 5, then the forecast for GDP growth for 2024 will be $30,289.2 billion. When GDP rises, corporate earnings increase, making it optimistic for stocks. Therefore, investing in a company is advisable.

Based on the above information, we can conclude that the company sells its products in the most densely populated and developing regions of the world, which is a decisive factor in increasing its profit and the growth of share prices. Sales focus on the Asia-Pacific region will have a positive impact on TUP stock prediction.

Increasing Influence on Eco-friendly products on TUP stock

Much research shows that plastic leaches chemicals into our food and drinks, which can harm our health. According to greenblue.org, by 2020, biodegradable plastics will represent 18% of bioplastics production, and bio-based, non-biodegradable plastics will rise to 82%.

Tupperware materials are carefully selected to the highest global food safety standards in plastics. 100% of them are BPA-free and recyclable. In my opinion, it’s a good reason for positive TUP stock prediction and investments in a company. Thus, an important factor in the company’s share price growth will be the increasing demand for eco-friendly goods and the company’s directed policy to satisfy this demand.

What Does DCF Analysis Tell about TUP’s growth?

Using a discounted cash flow (DCF) model, I estimated my target share price. The forecast is based on average data from previous years, the direction of the company’s policy, and the specifics of the development of this sector of the economy for the coming years. Future cash flows are projected based on historical data combined with a forecast for the next 4 years. The DCF analysis results show that TUP’s stock target price should be around $42.16. My target price is close to the upper scale of analysts’ average price prediction. This projected share price makes a 6.32% difference from the current share price.

At the same time, according to wallstreetzen and money.cnn , the analysts offering 12-month price forecasts for Tupperware Brands Corp have a median target of $30.5, with a high estimated $46 and a low estimate of $17.5.

Conclusion:

I take the buy-side on TUP stock because stock holds buy signals from both short and long-term moving averages giving a positive forecast. Tupperware shares are up more than 323.43% since the beginning of 2020. 50.46% of profit comes from the most densely populated and developing world regions. The company has the highest global food safety standards in plastics. Tupperware Brands Corporation holds several positive signals and is within a strongly rising trend. Therefore, I consider it a good choice at these current levels, and according to the DCF analysis results, TUP’s stock target price can be accepted to enrich 6.32% higher in the next year and be around $42.16.

It is worth paying attention that the stock-picking AI of I Know First has a high signal on the one-year market trend forecasts, supporting my position for the TUP stock forecast. The light green for the short-term forecasts is mildly bullish, while the darker green is a strong bullish signal for the one-year forecast.

Past Success With Tupperware Stock Prediction

I Know First has been bullish with its TUP in the past. On August 23, 2020, the I Know First algorithm issued a bullish forecast for TUP stock price and recommended TUP as one of the best consumer stocks to buy. The AI-driven Tupperware stock prediction was successful on a three-month horizon resulting in more than 163% gain since the forecast date. See the chart below.

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Please note-for trading decisions use the most recent forecast.