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Tupperware Brands - AI Stock Analysis

Analysis generated September 22, 2024

Tupperware Brands Corporation (NYSE: TUP) is an iconic household name renowned for its kitchen and home products. Established in the mid-20th century, Tupperware was pivotal in introducing the concept of direct selling and home parties. However, recent market conditions and evolving consumer preferences have posed challenges to its traditional business model.

Fundamental Analysis

Tupperware's revenue for the last quarter was $189 million. This represents a decrease of 26.77% compared to the previous quarter and a notable 35.72% drop from the same quarter last year. These figures signify a troubling trend in the company's ability to generate sales.

The net income for the last quarter stood at $56 million, an alarming 87.25% decline from the previous quarter and a stagnant position from the same quarter last year. The drastic reduction in net income is alarming and signals possible underlying issues in cost management and profitability.

Regarding EBITDA, the company reported $19 million. Despite being flat compared to the previous quarter, it reflects an 8.70% decline from the same quarter last year. EBITDA being flat offers a glimmer of hope, showing some level of operational stability.

The current P/E ratio of 25.27 can be considered high, potentially indicating overvaluation. This figure suggests that investors are paying a premium for the stock, likely based on future growth expectations that might not materialize given the current declining performance.

Technical Analysis

Today's stock price of Tupperware is $0.51, plummeting 58.20% from a month ago and a staggering 69.28% from the previous year. This notable decline spells short-term and long-term concerns for investors.

The trend for Tupperware’s stock is bearish. The current 10-day Simple Moving Average (SMA10) is 0.72, down from the previous 0.79, indicating a downward price movement. Coupled with a Relative Strength Index (RSI) of 10, the stock appears oversold, suggesting potential for a bullish rebound but within a generally negative trend.

Alternative Data Analysis

On the employment front, Tupperware Brands currently has only two open positions, marking a 50% reduction from prior levels. This reduction likely reflects efforts to cut costs, which is an unhealthy sign for a company expected to grow. Business outlook metrics also reveal an 18% drop, further clouding future prospects.

Conversely, customer acquisition data points to an estimated 15,000 monthly visitors on Tupperware's webpage, up by 7% in the last couple of months. This is a bullish signal, suggesting a potential increase in customer interest.

However, customer engagement metrics indicate stagnation, with no growth in social media followers: 110,000 on Instagram and 44,000 on Twitter. A lack of engagement growth reinforces concerns about declining interest in the brand.

AltIndex's AI score for Tupperware Brands is 11, which strongly signals a sell position based on their comprehensive analysis incorporating fundamental, technical, and alternative data.

Conclusion and Recommendation

In conclusion, Tupperware Brands faces significant challenges. Fundamental analysis highlights declining revenues and net incomes, indicating serious issues with generating sales and managing costs. Technical analysis reaffirms a bearish trend and an oversold condition, while alternative data points to stagnation in customer engagement and concerning employment trends, despite slight upticks in web traffic.

Given the overall unfavorable outlook painted by the fundamentals, technical indicators, and alternative data, Tupperware Brands is assessed as a high-risk investment. **Recommendation: Strong sell** for Tupperware Brands based on the data provided.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.