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WHOLE EARTH BRANDS INC (FREE)
US96684W1009 - Common Stock
We assign a fundamental rating of 3 out of 10 to FREE. FREE was compared to 92 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.
FREE had a positive operating cash flow in the past year.
In the past 5 years FREE reported 4 times negative net income.
The reported operating cash flow has been mixed in the past 5 years: FREE reported negative operating cash flow in multiple years.
1.2 Ratios
FREE's Return On Assets of -4.61% is on the low side compared to the rest of the industry. FREE is outperformed by 67.03% of its industry peers.
FREE has a worse Return On Equity (-15.13%) than 68.13% of its industry peers.
The Return On Invested Capital of FREE (2.45%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for FREE is significantly below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.61% | ||
| ROE | -15.13% | ||
| ROIC | 2.45% |
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
With a decent Operating Margin value of 4.10%, FREE is doing good in the industry, outperforming 60.44% of the companies in the same industry.
Looking at the Gross Margin, with a value of 26.08%, FREE is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
In the last couple of years the Gross Margin of FREE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 26.08% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FREE is destroying value.
The number of shares outstanding for FREE has been increased compared to 1 year ago.
Compared to 1 year ago, FREE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.09, we must say that FREE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.09, FREE is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
The Debt to FCF ratio of FREE is 21.45, which is on the high side as it means it would take FREE, 21.45 years of fcf income to pay off all of its debts.
FREE has a Debt to FCF ratio (21.45) which is comparable to the rest of the industry.
FREE has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.66, FREE is doing worse than 86.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 21.45 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.29
WACC8.39%
2.3 Liquidity
FREE has a Current Ratio of 3.24. This indicates that FREE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of FREE (3.24) is better than 86.81% of its industry peers.
FREE has a Quick Ratio of 1.12. This is a normal value and indicates that FREE is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.12, FREE is doing good in the industry, outperforming 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
FREE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -210.34%.
The Revenue has been growing slightly by 2.34% in the past year.
Measured over the past years, FREE shows a very strong growth in Revenue. The Revenue has been growing by 25.99% on average per year.
EPS 1Y (TTM)-210.34%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q48.48%
Revenue 1Y (TTM)2.34%
Revenue growth 3Y25.99%
Revenue growth 5YN/A
Revenue growth Q2Q8.83%
3.2 Future
The Earnings Per Share is expected to grow by 31.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.75% on average over the next years.
EPS Next Y117%
EPS Next 2Y56.99%
EPS Next 3Y39.29%
EPS Next 5Y31.33%
Revenue Next Year4.79%
Revenue Next 2Y5.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.75%
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.
FREE is valuated quite expensively with a Price/Forward Earnings ratio of 31.47.
FREE's Price/Forward Earnings is on the same level as the industry average.
FREE is valuated expensively when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FREE is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
81.32% of the companies in the same industry are more expensive than FREE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FREE's earnings are expected to grow with 39.29% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.99%
EPS Next 3Y39.29%
5. Dividend
5.1 Amount
FREE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WHOLE EARTH BRANDS INC
NASDAQ:FREE (5/3/2024, 7:00:00 PM)
4.815
0 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap206.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 31.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.61% | ||
| ROE | -15.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.1% | ||
| PM (TTM) | N/A | ||
| GM | 26.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.24 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-210.34%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y117%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.34%
Revenue growth 3Y25.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y