Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, household products company Tupperware Brands (NYSE: TUP ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Tupperware's business and see what CAPS investors are saying about the stock right now.
||Orlando, Fla. (1996)
||Housewares and specialties
||CEO E. V. Goings (since 1997)
CFO Michael Poteshman (since 2003)
|Return on Equity (Average, Past 3 Years)
|Cash / Debt
||$122.8 million / $457.3 million
||Avon Products (NYSE: AVP )
Newell Rubbermaid (NYSE: NWL )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 383 members who have rated Tupperware believe the stock will outperform the S&P 500 going forward. These bulls include clintm15 and Stender89.
Just last week, clintm15 tapped Tupperware as a rather ubiquitous choice:
A brand so strong that across many English speaking countries plastic containers are referred to as Tupperware, most people don't know that it's an actual company. Companies like this go largely ignored because the excitement factor is zero but it has an economic moat to die for.
Tupperware's brand power, exposure to emerging markets, and cheapish valuation continue to fuel its perfect five-star rating. Currently, Tupperware even trades at a P/E (13.4) discount to main rivals Avon (19.6) and Newell Rubbermaid (19.5), as well other houseware stocks like Jarden (NYSE: JAH ) (46.3), Blount International (NYSE: BLT ) (18.7), and Lifetime Brands (Nasdaq: LCUT ) (14.8).
CAPS member Stender89 expands on the Tupperware opportunity:
1: They're a cash machine growing huge [free cash flow] as far as I can tell.
2: They have an attractive, easy to understand business model.
3: They'll bring in a huge number of new recruits via the women in the developing markets.
4: They're paying down debt, buying back stock and yielding an attractive, easily maintainable dividend. ...
In conclusion this is probably not going to be a [Netflix]-kind-of-ten-bagger, but it is a very solid core stock that is not too set in its ways to grow at doubledigit rates in the foreseeable future.
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