Tupperware Brands Corp (NYSE:TUP)

CAPS Rating: 4 out of 5

The Company is a worldwide direct selling consumer products company engaged in the manufacture and sale of Tupperware products and cosmetics and personal care products.

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Member Avatar Amoeba17 (51.21) Submitted: 12/17/2014 2:59:09 PM : Outperform Start Price: $59.49 TUP Score: +2.07

This stock is near it's bottom. Time to buy and hold for a little while.

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Member Avatar elcid24 (79.38) Submitted: 12/17/2014 10:29:48 AM : Outperform Start Price: $78.68 TUP Score: -30.34

I wrote a post on the importance of price here:

http://caps.fool.com/Blogs/the-importance-of-purchase/1006943

In the post, I talk about how I didn't wait for a great price to buy TUP. I purchased it at about 12-13x pre-tax earnings.

Fast forward to today, and I believe TUP is trading at a great price. This company returns $300M+ in pre-tax income, like clockwork. At a $3B market cap, that's 10x pre-tax earnings. That's a great price for a company like TUP.

The dividend yield is 4.6% - more than double the yield of the S&P 500. If management begins to accelerate buybacks going into 2015, at such depressed prices, share reduction will be incredible.

High Dividend. Cannibal. 10x pre-tax earnings. High ROIC.

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Member Avatar 20Punches (51.34) Submitted: 10/30/2014 12:01:58 PM : Outperform Start Price: $63.13 TUP Score: -5.13

(Early) Punch #14 – Tupperware Brands, Inc. (TUP)

Tupperware is a seriously wonderful business. They’ve generated consistently high ROIC (15%+), demonstrated smart capital allocation, and possess a simple, yet powerful business model that a ham sandwich could probably run.

The ingenious “Tupperware Party” sales model utilizes potent psychological influences, and has proven extremely effective for a long period of time. The internet isn’t going to re-write the rules of human psychology. Read “Influence” by Cialdini for more insight into 1) reciprocity, 2) commitment, 3) social proof, and 4) liking.

From Influence: “It’s gotten to the point now where I hate to be invited to Tupperware parties. I’ve got all the containers I need; and if I wanted any more, I could buy another brand cheaper in the store. But when a friend calls up, I feel like I have to go. And when I get there, I feel like I have to buy something. What can I do? It’s for my friends.”

A full year consists of 31,536,000 seconds. Last year there were 24 million Tupperware Parties around the globe. That means a new Tupperware Party starts every 1.31 seconds. And each Tupperware Party generates an average of $10.63 of free cash flow.

North America and Europe (45% of sales) are mature markets and not going to grow much, but emerging markets (65% of sales) are growing fast, especially in Asia, the Tupperware region that already has the highest margins.

Risks would include anti-direct sales legislation, but I think Tupperware’s global breadth diversifies against this risk.

Another risk would be the DTC model being more heavily regulated. Reminds me a bit of HLF, but TUP says expressly in their 10-K’s that the “vast majority” of sales are by real consumers, and I believe them. They have one of the most transparent 10-K’s I’ve ever read.

Tupperware has little need for capex, so they throw of LOTs of free cash flow, which is in turn fueling LOTS of buybacks. Per the Annual Report:

(a) Open market repurchases are being made under an authorization that runs until February 1, 2017 and allows up to $2 billion to be spent.

That’s a buyback authorization of $2B for a $3.2 billion company! That’s 63% of the current market cap. I have NEVER seen such an incredible buyback authorization.

The CEO has been CEO for 17 very successful years, which is great to see.

I think that if you consider free cash flow growth, and buybacks, you can conservatively expect $9 in annual per-share FCF in the next 5-6 years. Assuming a 15x multiple on that free cash flow, and 10% growth rate for the dividends…you get a $150 total return in 5 years. That’s an 18.57% annualized rate of total return.

I’d value TUP around $85-90, and they’re selling around $64 today, so that’s a pretty big margin of safety.

TUP to outperform.

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Member Avatar EthylMercaptan (94.28) Submitted: 10/2/2014 10:35:16 AM : Outperform Start Price: $68.81 TUP Score: -15.49

Great dividend and decent growth

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Member Avatar afewgoodstocks14 (< 20) Submitted: 9/16/2014 12:44:02 PM : Outperform Start Price: $79.45 TUP Score: -32.00

Div. (Yield) $2.72 (3.7%)

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Member Avatar TMFInnovator (42.90) Submitted: 1/24/2014 2:51:35 PM : Outperform Start Price: $79.20 TUP Score: -35.82

Their low-cost, direct-sales model is ingenious. I've been watching this company for awhile waiting to pounce on a drop.

I think that this is my chance. Outperform.

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Member Avatar Teacherman333 (85.25) Submitted: 7/27/2013 5:51:26 PM : Outperform Start Price: $77.66 TUP Score: -45.88

For reference point and to allow for comments by others. As of the end of March, 2013.

ROE 39,56%
Trailing PE 24.06
PB 10.05
Div yield 3.10%

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Member Avatar joryko (99.22) Submitted: 7/15/2013 2:36:06 PM : Outperform Start Price: $71.43 TUP Score: -43.16

With 61% of its sales coming from emerging markets, 24% of company revenues coming from its rapidly growing Beauty and Personal Care segment, and its continued payment of a 3% dividend, Tupperware offers quite a lot to investors.

However, the company's biggest weapon, and the reason I'm interested, is its INNOVATION.

25% of the company's sales come from products that were brought to market within the last 2 years. While this puts them at risk of having to continually innovate, I believe the opportunity of huge new products outweighs the risk of failing to create them.

With a slight decline in stock price from the slowdown in emerging markets, I was able to jump in on a great company at a fair price. 5+ years.

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Member Avatar trurl9 (63.71) Submitted: 6/8/2013 5:40:44 AM : Outperform Start Price: $78.47 TUP Score: -45.10

Tupperware is solid, pays good dividend, and empowers loyal user base.

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Member Avatar Beginner110 (81.39) Submitted: 10/29/2012 8:41:49 PM : Outperform Start Price: $53.82 TUP Score: -29.21

High earnings predictabilty and growth persistence. strong finances, reasonable PE. Very consistent management.

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Member Avatar red1582 (< 20) Submitted: 10/24/2012 5:18:52 PM : Outperform Start Price: $55.23 TUP Score: -32.00

Barchart
100% on Average

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Member Avatar Profit12 (40.80) Submitted: 4/21/2012 10:20:44 AM : Outperform Start Price: $55.98 TUP Score: -39.36

Everyone needs Tupperware.....

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Member Avatar toaoyoda (< 20) Submitted: 2/10/2012 2:59:54 PM : Outperform Start Price: $56.23 TUP Score: -42.71

This company's business model is even more successful outside the U.S. than inside. (Indeed, they screwed things up in the US by trying to sell products through retail and demoralizing its sales force. This should be improving with the job situation and flexibility of working hours.)
The business is not just poppable plastic containers since it has successfully expanded its model to market beauty products.
As an aside, and with no indication that this might be a possibility, it should be noted that Berkshire Hathaway has a similar subsidiary in the beauty product area so a takeover is not illogical.

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Member Avatar iwannabrichnow (49.18) Submitted: 1/1/2012 7:18:32 PM : Underperform Start Price: $52.23 TUP Score: +43.95

seriously, when's the last time you went to a tupperware party?

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Member Avatar milren4 (< 20) Submitted: 9/20/2011 10:41:05 PM : Outperform Start Price: $54.92 TUP Score: -57.70

much of its sales are overseas

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Member Avatar jlahive (< 20) Submitted: 8/25/2011 10:24:19 AM : Outperform Start Price: $57.33 TUP Score: -66.97

I sell tupperware, Discovery toys, and Avon.
I like to see where they are going to be as a growing companies. I like to see each company reach the outperformance of others in stock.

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Member Avatar JNietzel (64.83) Submitted: 7/20/2011 4:39:52 PM : Outperform Start Price: $63.22 TUP Score: -55.73

High growth in emerging markets. High profitability and management effectiveness

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Member Avatar XMFReza (29.99) Submitted: 6/23/2011 2:57:14 PM : Outperform Start Price: $57.81 TUP Score: -53.74

It has a brilliant business model for tapping into the emerging markets.

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Member Avatar Wahoo1954 (52.02) Submitted: 4/29/2011 7:29:55 AM : Outperform Start Price: $56.58 TUP Score: -40.96

CASHFLOW

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Member Avatar Rhn8982 (< 20) Submitted: 3/14/2011 1:41:28 PM : Outperform Start Price: $52.33 TUP Score: -39.84

Tupperware has been very good in adapting its products to the needs of different countries and cultures. The management has shown it is very aware of cultural differences and this has shown in their sales in many developing markets. This I think bodes well for expanding sales as more people in developing countries are earning enough money to buy them. My favorite story about them is making a flat round Tupperware product for naan bread in India which just shows how much they are adapting to India's needs.

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