Logo image of FREE

WHOLE EARTH BRANDS INC (FREE) Stock Fundamental Analysis

NASDAQ:FREE - Nasdaq - US96684W1009 - Common Stock - Currency: USD

4.87  -0.01 (-0.2%)

After market: 4.88 +0.01 (+0.21%)

Fundamental Rating

3

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. Both the profitability and financial health of FREE have multiple concerns. FREE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

2

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.
FREE had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: FREE reported negative operating cash flow in multiple years.
FREE Yearly Net Income VS EBIT VS OCF VS FCFFREE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 20M -20M -40M

1.2 Ratios

Looking at the Return On Assets, with a value of -3.39%, FREE is doing worse than 63.04% of the companies in the same industry.
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.
Looking at the Return On Invested Capital, with a value of 2.49%, FREE is in line with its industry, outperforming 45.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FREE is significantly below the industry average of 8.91%.
Industry RankSector 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
FREE Yearly ROA, ROE, ROICFREE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -5 -10 -15 -20

1.3 Margins

FREE's Operating Margin of 4.14% is in line compared to the rest of the industry. FREE outperforms 57.61% of its industry peers.
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 RankSector 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
FREE Yearly Profit, Operating, Gross MarginsFREE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

More info and screens

3

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.
FREE Yearly Shares OutstandingFREE Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 10M 20M 30M 40M
FREE Yearly Total Debt VS Total AssetsFREE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M

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.
FREE's Altman-Z score of 1.08 is on the low side compared to the rest of the industry. FREE is outperformed by 71.74% of its industry peers.
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 of 65.58. This is comparable to the rest of the industry: FREE outperforms 50.00% of its industry peers.
FREE has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
FREE has a worse Debt to Equity ratio (1.81) than 83.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 65.58
Altman-Z 1.08
ROIC/WACC0.3
WACC8.19%
FREE Yearly LT Debt VS Equity VS FCFFREE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 3.34 indicates that FREE has no problem at all paying 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.
FREE's Quick ratio of 1.06 is fine compared to the rest of the industry. FREE outperforms 63.04% of its industry peers.
Industry RankSector Rank
Current Ratio 3.34
Quick Ratio 1.06
FREE Yearly Current Assets VS Current LiabilitesFREE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.69% over the past year.
Looking at the last year, FREE shows a small growth in Revenue. The Revenue has grown by 1.46% in the last 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.
FREE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
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

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FREE Yearly Revenue VS EstimatesFREE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
FREE Yearly EPS VS EstimatesFREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 -0.5

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

FREE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 11.65, the valuation of FREE can be described as very 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.
FREE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.35.
Industry RankSector Rank
PE N/A
Fwd PE 11.65
FREE Price Earnings VS Forward Price EarningsFREE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

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.
FREE's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 32.66
EV/EBITDA 12.8
FREE Per share dataFREE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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%

More info and screens

0

5. Dividend

5.1 Amount

FREE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

WHOLE EARTH BRANDS INC

NASDAQ:FREE (8/2/2024, 8:06:44 PM)

After market: 4.88 +0.01 (+0.21%)

4.87

-0.01 (-0.2%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)08-06 2024-08-06/bmo
Earnings (Next)11-07 2024-11-07/bmo
Inst Owners0.2%
Inst Owner Change-33.33%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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