WHOLE EARTH BRANDS INC (FREE) Stock Fundamental Analysis
NASDAQ:FREE - US96684W1009 - Common Stock
4.87 USD
-0.01 (-0.2%)
4.88 USD
+0.01 (+0.21%)
Taking everything into account, FREE scores 3 out of 10 in our fundamental rating. FREE was compared to 90 industry peers in the Food Products industry. FREE may be in some trouble as it scores bad on both profitability and health. FREE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FREE had negative earnings in the past year.
In the past year FREE had a positive cash flow from operations.
In the past 5 years FREE reported 4 times negative net income.
In multiple years FREE reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of FREE (-3.39%) is worse than 63.04% of its industry peers.
Looking at the Return On Equity, with a value of -11.83%, FREE is doing worse than 65.22% of the companies in the same industry.
FREE has a Return On Invested Capital (2.49%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FREE is significantly below the industry average of 27.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.39% | ||
| ROE | -11.83% | ||
| ROIC | 2.49% |
ROA(3y)-3.84%
ROA(5y)-3.74%
ROE(3y)-12.17%
ROE(5y)-10.07%
ROIC(3y)2.51%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 4.14%, FREE is in line with its industry, outperforming 57.61% of the companies in the same industry.
FREE's Gross Margin of 27.13% is fine compared to the rest of the industry. FREE outperforms 65.22% of its industry peers.
In the last couple of years the Gross Margin of FREE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.14% | ||
| PM (TTM) | N/A | ||
| GM | 27.13% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.3%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FREE is destroying value.
FREE has more shares outstanding than it did 1 year ago.
The debt/assets ratio for FREE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that FREE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, FREE is doing worse than 71.74% of the companies in the same industry.
The Debt to FCF ratio of FREE is 65.58, which is on the high side as it means it would take FREE, 65.58 years of fcf income to pay off all of its debts.
FREE has a Debt to FCF ratio (65.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.81 is on the high side and indicates that FREE has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.81, FREE is doing worse than 83.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 65.58 | ||
| Altman-Z | 1.08 |
ROIC/WACC0.3
WACC8.19%
2.3 Liquidity
FREE has a Current Ratio of 3.34. This indicates that FREE is financially healthy and has no problem in meeting its short term obligations.
FREE's Current ratio of 3.34 is amongst the best of the industry. FREE outperforms 86.96% of its industry peers.
A Quick Ratio of 1.06 indicates that FREE should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.06, FREE is doing good in the industry, outperforming 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.34 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.69% over the past year.
The Revenue has been growing slightly by 1.46% in the past year.
The Revenue has been growing by 25.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)21.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.19%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y25.99%
Revenue growth 5YN/A
Sales Q2Q%-2.2%
3.2 Future
FREE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.33% yearly.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y89.8%
EPS Next 2Y56.99%
EPS Next 3Y39.29%
EPS Next 5Y31.33%
Revenue Next Year4.85%
Revenue Next 2Y5.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.72%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FREE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 11.65, the valuation of FREE can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FREE indicates a rather cheap valuation: FREE is cheaper than 83.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, FREE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FREE is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FREE is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.66 | ||
| EV/EBITDA | 12.8 |
4.3 Compensation for Growth
FREE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FREE's earnings are expected to grow with 39.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.99%
EPS Next 3Y39.29%
5. Dividend
5.1 Amount
No dividends for FREE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.87
-0.01 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners0.2%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change0%
Market Cap212.23M
Analysts45.71
Price Target5.36 (10.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1372.55%
Min EPS beat(2)-1766.67%
Max EPS beat(2)-978.43%
EPS beat(4)0
Avg EPS beat(4)-795.57%
Min EPS beat(4)-1766.67%
Max EPS beat(4)-59.31%
EPS beat(8)0
Avg EPS beat(8)-2083.01%
EPS beat(12)1
Avg EPS beat(12)-1401.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)3.71%
Revenue beat(4)1
Avg Revenue beat(4)-3.97%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)3.71%
Revenue beat(8)1
Avg Revenue beat(8)-2.74%
Revenue beat(12)3
Avg Revenue beat(12)-2.49%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-160%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 11.65 | ||
| P/S | 0.39 | ||
| P/FCF | 32.66 | ||
| P/OCF | 18.16 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.8 |
EPS(TTM)-0.65
EYN/A
EPS(NY)0.42
Fwd EY8.59%
FCF(TTM)0.15
FCFY3.06%
OCF(TTM)0.27
OCFY5.51%
SpS12.57
BVpS5.37
TBVpS-4.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.39% | ||
| ROE | -11.83% | ||
| ROCE | 3.15% | ||
| ROIC | 2.49% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 6.25% | ||
| OM | 4.14% | ||
| PM (TTM) | N/A | ||
| GM | 27.13% | ||
| FCFM | 1.19% |
ROA(3y)-3.84%
ROA(5y)-3.74%
ROE(3y)-12.17%
ROE(5y)-10.07%
ROIC(3y)2.51%
ROIC(5y)N/A
ROICexc(3y)2.61%
ROICexc(5y)N/A
ROICexgc(3y)7.23%
ROICexgc(5y)N/A
ROCE(3y)3.18%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.3%
GM growth 5YN/A
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.81 | ||
| Debt/FCF | 65.58 | ||
| Debt/EBITDA | 8.79 | ||
| Cap/Depr | 20.48% | ||
| Cap/Sales | 0.95% | ||
| Interest Coverage | 0.54 | ||
| Cash Conversion | 24.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.34 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.08 |
F-Score6
WACC8.19%
ROIC/WACC0.3
Cap/Depr(3y)37.14%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.72%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.19%
EPS Next Y89.8%
EPS Next 2Y56.99%
EPS Next 3Y39.29%
EPS Next 5Y31.33%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y25.99%
Revenue growth 5YN/A
Sales Q2Q%-2.2%
Revenue Next Year4.85%
Revenue Next 2Y5.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.72%
EBIT growth 1Y27.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year269.06%
EBIT Next 3Y65.32%
EBIT Next 5Y39.48%
FCF growth 1Y16.24%
FCF growth 3Y100.47%
FCF growth 5YN/A
OCF growth 1Y-40.17%
OCF growth 3Y34.27%
OCF growth 5YN/A