NasdaqGS:TUES

Stock Analysis Report

Executive Summary

Tuesday Morning Corporation operates as an off-price retailer in the United States.

Rewards

Trading at 42.1% below its fair value

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($75M)



Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Tuesday Morning's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TUES has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

TUES

-2.4%

US Multiline Retail

1.2%

US Market


1 Year Return

-17.6%

TUES

21.0%

US Multiline Retail

24.2%

US Market

Return vs Industry: TUES underperformed the US Multiline Retail industry which returned 26.9% over the past year.

Return vs Market: TUES underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TUESIndustryMarket
7 Day-5.5%-2.4%1.2%
30 Day-15.8%-5.0%3.5%
90 Day17.4%-3.6%11.7%
1 Year-17.6%-17.6%23.9%21.0%26.9%24.2%
3 Year-62.7%-62.7%59.9%48.4%53.0%43.2%
5 Year-92.6%-92.6%34.6%17.2%75.3%56.0%

Price Volatility Vs. Market

How volatile is Tuesday Morning's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tuesday Morning undervalued compared to its fair value and its price relative to the market?

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TUES ($1.64) is trading below our estimate of fair value ($2.83)

Significantly Below Fair Value: TUES is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TUES is unprofitable, so we can't compare its PE Ratio to the Multiline Retail industry average.

PE vs Market: TUES is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TUES's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TUES is good value based on its PB Ratio (0.5x) compared to the US Multiline Retail industry average (1.4x).


Next Steps

Future Growth

How is Tuesday Morning forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

64.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TUES is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TUES is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TUES is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TUES's revenue (0.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: TUES's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TUES's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tuesday Morning performed over the past 5 years?

-42.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TUES is currently unprofitable.

Growing Profit Margin: TUES is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TUES is unprofitable, and losses have increased over the past 5 years at a rate of -42.7% per year.

Accelerating Growth: Unable to compare TUES's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TUES is unprofitable, making it difficult to compare its past year earnings growth to the Multiline Retail industry (-9%).


Return on Equity

High ROE: TUES has a negative Return on Equity (-8.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tuesday Morning's financial position?


Financial Position Analysis

Short Term Liabilities: TUES's short term assets ($298.1M) exceed its short term liabilities ($227.7M).

Long Term Liabilities: TUES's short term assets ($298.1M) do not cover its long term liabilities ($373.2M).


Debt to Equity History and Analysis

Debt Level: TUES's debt to equity ratio (35.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TUES's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: TUES has a high level of physical assets or inventory.

Debt Coverage by Assets: TUES's debt is covered by short term assets (assets are 5.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TUES has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: TUES has less than a year of cash runway if free cash flow continues to grow at historical rates of 101.1% each year.


Next Steps

Dividend

What is Tuesday Morning's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TUES's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TUES's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TUES's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TUES's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TUES is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TUES's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Tuesday Morning's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Steve Becker (52yo)

4.1yrs

Tenure

US$3,260,316

Compensation

Mr. Steven Robert Becker, J.D., also known as Steve, has been the Chief Executive Officer and President of Tuesday Morning Corporation since December 14, 2015 and January 17, 2017 respectively. Mr. Becker  ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.26M) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: TUES's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TUES's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: TUES insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$100,12012 Nov 19
Reuben Slone
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares65,000
Max PriceUS$1.55
BuyUS$129,41103 Sep 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares90,000
Max PriceUS$1.44
BuyUS$112,29503 Sep 19
Terry Burman
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares80,000
Max PriceUS$1.41
BuyUS$14,23430 Aug 19
Barry Gluck
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$1.42
BuyUS$45,00007 Jun 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares30,000
Max PriceUS$1.50
BuyUS$28,73531 May 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares19,030
Max PriceUS$1.51
BuyUS$40,50029 May 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares25,000
Max PriceUS$1.62
BuyUS$8,25022 May 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$1.65
BuyUS$330,27413 May 19
Steven Becker
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares190,100
Max PriceUS$1.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Douglas Sullivan (68yo)

    Senior Vice President of Real Estate

    • Tenure: 5.9yrs
  • Trent Taylor (61yo)

    Chief Information Officer and Executive VP of Supply Chain & Inventory Management

    • Tenure: 3yrs
    • Compensation: US$962.93k
  • Paul Metcalf (58yo)

    Acting Chief Merchant

    • Tenure: 0.08yrs
  • Steve Becker (52yo)

    CEO, President & Director

    • Tenure: 4.1yrs
    • Compensation: US$3.26m
  • Stacie Shirley (50yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$1.16m
  • Bridgett Zeterberg (55yo)

    Executive VP of HR

    • Tenure: 3.5yrs
    • Compensation: US$827.60k
  • Phil Hixon (65yo)

    Executive Vice President of Store Operations

    • Tenure: 5.6yrs
    • Compensation: US$892.21k
  • Kelly Munsch (51yo)

    VP & Controller

    • Tenure: 5.2yrs
    • Compensation: US$416.31k
  • Miki Eilers

    Senior Vice President of Supply Chain

    • Tenure: 3yrs
  • Catherine Davis

    Senior Vice President of Marketing

    • Tenure: 2.8yrs

Board Members

  • Barry Gluck (66yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$104.82k
  • Sherry Smith (57yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$114.82k
  • Reuben Slone (56yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$32.32k
  • Terry Burman (73yo)

    Independent Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: US$195.02k
  • Richard Willis (59yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$127.32k
  • Steve Becker (52yo)

    CEO, President & Director

    • Tenure: 4.1yrs
    • Compensation: US$3.26m
  • Frank Hamlin (50yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$109.82k
  • James Corcoran (36yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$107.32k

Company Information

Tuesday Morning Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tuesday Morning Corporation
  • Ticker: TUES
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: General Merchandise Stores
  • Sector: Retail
  • Market Cap: US$71.144m
  • Shares outstanding: 45.90m
  • Website: https://www.tuesdaymorning.com

Number of Employees


Location

  • Tuesday Morning Corporation
  • 6250 LBJ Freeway
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TUESNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1999
TDMDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1999

Biography

Tuesday Morning Corporation operates as an off-price retailer in the United States. The company offers various products, such as upscale home textiles, home furnishings, housewares, gourmet food products, toys, and seasonal décor products. As of August 22, 2019, it operated approximately 700 stores in 40 states. Tuesday Morning Corporation was founded in 1974 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 23:50
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.