WHOLE EARTH BRANDS INC (FREE) Fundamental Analysis & Valuation

NASDAQ:FREE • US96684W1009

Current stock price

4.87 USD
-0.01 (-0.2%)
At close:
4.88 USD
+0.01 (+0.21%)
After Hours:

This FREE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. FREE Profitability Analysis

1.1 Basic Checks

  • FREE had negative earnings in the past year.
  • FREE had a positive operating cash flow in the past year.
  • FREE had negative earnings in 4 of the past 5 years.
  • In multiple years FREE reported negative operating cash flow during the last 5 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

  • With a Return On Assets value of -3.39%, FREE is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
  • FREE has a Return On Equity of -11.83%. This is in the lower half of the industry: FREE underperforms 65.22% of its industry peers.
  • With a Return On Invested Capital value of 2.49%, FREE perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
  • FREE had an Average Return On Invested Capital over the past 3 years of 2.51%. This is below the industry average of 7.23%.
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

  • With a Operating Margin value of 4.14%, FREE perfoms like the industry average, 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 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

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3

2. FREE Health Analysis

2.1 Basic Checks

  • FREE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for FREE has been increased compared to 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.
  • The Altman-Z score of FREE (1.08) is worse than 71.74% of its industry peers.
  • FREE has a debt to FCF ratio of 65.58. This is a negative value and a sign of low solvency as FREE would need 65.58 years to pay back of all of its debts.
  • FREE's Debt to FCF ratio of 65.58 is in line compared to the rest of the industry. FREE outperforms 50.00% of its industry peers.
  • 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 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.
  • With an excellent Current ratio value of 3.34, FREE belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • 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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. FREE Growth Analysis

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.
  • 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)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

  • Based on estimates for the next years, FREE will show a very strong growth in Earnings Per Share. The EPS will grow by 31.33% on average per year.
  • 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.
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

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Find the best growth stocksShow best growing peers

5

4. FREE Valuation Analysis

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.
  • FREE's Price/Forward Earnings ratio is rather cheap when compared to the industry. FREE is cheaper than 83.70% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. FREE is valued slightly cheaper when compared to this.
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as FREE.
  • 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

  • FREE's 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

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FREE Dividend Analysis

5.1 Amount

  • No dividends for FREE!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

FREE Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)11-07
Inst Owners0.2%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change0%
Market Cap212.23M
Revenue(TTM)547.99M
Net Income(TTM)-27.68M
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
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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

WHOLE EARTH BRANDS INC / FREE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for WHOLE EARTH BRANDS INC?

ChartMill assigns a fundamental rating of 3 / 10 to FREE.


Can you provide the valuation status for WHOLE EARTH BRANDS INC?

ChartMill assigns a valuation rating of 5 / 10 to WHOLE EARTH BRANDS INC (FREE). This can be considered as Fairly Valued.


Can you provide the profitability details for WHOLE EARTH BRANDS INC?

WHOLE EARTH BRANDS INC (FREE) has a profitability rating of 2 / 10.


What is the expected EPS growth for WHOLE EARTH BRANDS INC (FREE) stock?

The Earnings per Share (EPS) of WHOLE EARTH BRANDS INC (FREE) is expected to grow by 89.8% in the next year.