TUP Stock Report

2-Year Price History

Ockham's Rating

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TUP Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TUP the high and low end of the Price to Sales per share ratios are 1.11x and 0.67x respectively.

Notice that TUP's current Price to Sales per share ratio is 0.66x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $26.24, TUP is 26% below where we would expect to see it. This will beneficially factor into our final analysis of TUP as it is not often that this stock sinks to these levels.

TUP Cash Earnings

As the old saying goes, "Cash is King!" However, we prefer to capture a few other items within our analysis to identify "cash earnings". Nevertheless, an analysis of Cash Earnings is absolutely pivotal to assessing a company's value, and currently TUP is below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for TUP, the current level of Cash Earnings compared to its historical levels helps identify where TUP is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 10.84 and a historical low Cash Earnings per share ratio of 6.47, an investor can relate where value becomes optimal.

With a historical average Cash Earnings ratio of 8.65, the current Cash Earnings ratio of 7.74 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for TUP, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at TUP needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where TUP is trading currently (latest close price of $26.24).

TUP Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from TUP against the historic high and low levels over an available data range. Because TUP has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In TUP’s case, the estimated annual dividend is $0.88 producing a current dividend yield of 3.35%. The highest dividend yield from TUP in recent history was 8.07% while the lowest dividend yield was 1.95%. With that range in mind, TUP’s current dividend yield is a full 33.13% below its median dividend yield historically. This is a negative from our perspective.