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TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis

NYSE:THS - New York Stock Exchange, Inc. - US89469A1043 - Common Stock - Currency: USD

23.45  -0.27 (-1.14%)

After market: 23.65 +0.2 (+0.85%)

Fundamental Rating

3

Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 90 industry peers in the Food Products industry. There are concerns on the financial health of THS while its profitability can be described as average. THS is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

THS had positive earnings in the past year.
THS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: THS reported negative net income in multiple years.
THS had a positive operating cash flow in 4 of the past 5 years.
THS Yearly Net Income VS EBIT VS OCF VS FCFTHS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

THS has a Return On Assets (0.68%) which is in line with its industry peers.
With a Return On Equity value of 1.74%, THS perfoms like the industry average, outperforming 41.11% of the companies in the same industry.
With a Return On Invested Capital value of 4.72%, THS perfoms like the industry average, outperforming 47.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for THS is significantly below the industry average of 8.94%.
The 3 year average ROIC (3.80%) for THS is below the current ROIC(4.72%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.68%
ROE 1.74%
ROIC 4.72%
ROA(3y)-0.49%
ROA(5y)-0.29%
ROE(3y)-1.25%
ROE(5y)-0.74%
ROIC(3y)3.8%
ROIC(5y)3.42%
THS Yearly ROA, ROE, ROICTHS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15

1.3 Margins

With a Profit Margin value of 0.80%, THS perfoms like the industry average, outperforming 41.11% of the companies in the same industry.
THS's Operating Margin of 5.99% is fine compared to the rest of the industry. THS outperforms 64.44% of its industry peers.
In the last couple of years the Operating Margin of THS has remained more or less at the same level.
THS's Gross Margin of 17.64% is in line compared to the rest of the industry. THS outperforms 46.67% of its industry peers.
In the last couple of years the Gross Margin of THS has remained more or less at the same level.
Industry RankSector Rank
OM 5.99%
PM (TTM) 0.8%
GM 17.64%
OM growth 3Y61.96%
OM growth 5Y0.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y-1.08%
THS Yearly Profit, Operating, Gross MarginsTHS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THS is destroying value.
THS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for THS has been reduced compared to 5 years ago.
The debt/assets ratio for THS is higher compared to a year ago.
THS Yearly Shares OutstandingTHS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
THS Yearly Total Debt VS Total AssetsTHS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 1.30, we must say that THS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.30, THS is doing worse than 64.44% of the companies in the same industry.
THS has a debt to FCF ratio of 11.12. This is a negative value and a sign of low solvency as THS would need 11.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.12, THS is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 0.90 indicates that THS is somewhat dependend on debt financing.
The Debt to Equity ratio of THS (0.90) is worse than 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 11.12
Altman-Z 1.3
ROIC/WACC0.7
WACC6.7%
THS Yearly LT Debt VS Equity VS FCFTHS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

THS has a Current Ratio of 1.36. This is a normal value and indicates that THS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.36, THS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that THS may have some problems paying its short term obligations.
The Quick ratio of THS (0.63) is worse than 68.89% of its industry peers.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 0.63
THS Yearly Current Assets VS Current LiabilitesTHS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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3

3. Growth

3.1 Past

The earnings per share for THS have decreased strongly by -20.08% in the last year.
THS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.84% yearly.
The Revenue for THS has decreased by -22.42% in the past year. This is quite bad
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.80% yearly.
EPS 1Y (TTM)-20.08%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%23.38%
Revenue 1Y (TTM)-22.42%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.07%

3.2 Future

The Earnings Per Share is expected to grow by 15.68% on average over the next years. This is quite good.
THS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.28% yearly.
EPS Next Y-8.1%
EPS Next 2Y6.95%
EPS Next 3Y11.13%
EPS Next 5Y15.68%
Revenue Next Year-0.12%
Revenue Next 2Y0.78%
Revenue Next 3Y1.04%
Revenue Next 5Y2.28%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
THS Yearly Revenue VS EstimatesTHS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
THS Yearly EPS VS EstimatesTHS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6

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5

4. Valuation

4.1 Price/Earnings Ratio

THS is valuated correctly with a Price/Earnings ratio of 12.03.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 74.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. THS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 13.09, the valuation of THS can be described as correct.
Based on the Price/Forward Earnings ratio, THS is valued a bit cheaper than 76.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of THS to the average of the S&P500 Index (20.74), we can say THS is valued slightly cheaper.
Industry RankSector Rank
PE 12.03
Fwd PE 13.09
THS Price Earnings VS Forward Price EarningsTHS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THS indicates a rather cheap valuation: THS is cheaper than 82.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, THS is valued cheaper than 82.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.34
EV/EBITDA 6.62
THS Per share dataTHS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.95%
EPS Next 3Y11.13%

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0

5. Dividend

5.1 Amount

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

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TREEHOUSE FOODS INC

NYSE:THS (5/5/2025, 8:04:00 PM)

After market: 23.65 +0.2 (+0.85%)

23.45

-0.27 (-1.14%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)02-14 2025-02-14/bmo
Earnings (Next)05-06 2025-05-06/bmo
Inst Owners111.23%
Inst Owner Change-0.89%
Ins Owners0.86%
Ins Owner Change2.31%
Market Cap1.18B
Analysts70
Price Target28.41 (21.15%)
Short Float %3.28%
Short Ratio2.02
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)-2.77%
Min EPS beat(2)-3.08%
Max EPS beat(2)-2.46%
EPS beat(4)1
Avg EPS beat(4)-8.62%
Min EPS beat(4)-150.45%
Max EPS beat(4)121.5%
EPS beat(8)4
Avg EPS beat(8)5.65%
EPS beat(12)8
Avg EPS beat(12)17.26%
EPS beat(16)9
Avg EPS beat(16)9.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-0.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)1.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)5
Avg Revenue beat(16)-4.35%
PT rev (1m)-17.76%
PT rev (3m)-18.37%
EPS NQ rev (1m)21.15%
EPS NQ rev (3m)-216.19%
EPS NY rev (1m)1.32%
EPS NY rev (3m)-25.57%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.39%
Valuation
Industry RankSector Rank
PE 12.03
Fwd PE 13.09
P/S 0.35
P/FCF 9.34
P/OCF 4.43
P/B 0.76
P/tB N/A
EV/EBITDA 6.62
EPS(TTM)1.95
EY8.32%
EPS(NY)1.79
Fwd EY7.64%
FCF(TTM)2.51
FCFY10.71%
OCF(TTM)5.29
OCFY22.58%
SpS66.81
BVpS30.85
TBVpS-9.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.68%
ROE 1.74%
ROCE 6.21%
ROIC 4.72%
ROICexc 5.19%
ROICexgc 16.73%
OM 5.99%
PM (TTM) 0.8%
GM 17.64%
FCFM 3.76%
ROA(3y)-0.49%
ROA(5y)-0.29%
ROE(3y)-1.25%
ROE(5y)-0.74%
ROIC(3y)3.8%
ROIC(5y)3.42%
ROICexc(3y)4.14%
ROICexc(5y)3.72%
ROICexgc(3y)12.77%
ROICexgc(5y)11.37%
ROCE(3y)5%
ROCE(5y)4.5%
ROICexcg growth 3Y106.44%
ROICexcg growth 5Y5.04%
ROICexc growth 3Y86.03%
ROICexc growth 5Y2.26%
OM growth 3Y61.96%
OM growth 5Y0.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.79%
GM growth 5Y-1.08%
F-Score5
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.9
Debt/FCF 11.12
Debt/EBITDA 4.03
Cap/Depr 94.97%
Cap/Sales 4.17%
Interest Coverage 2.36
Cash Conversion 76.36%
Profit Quality 468.77%
Current Ratio 1.36
Quick Ratio 0.63
Altman-Z 1.3
F-Score5
WACC6.7%
ROIC/WACC0.7
Cap/Depr(3y)86.71%
Cap/Depr(5y)73.26%
Cap/Sales(3y)3.71%
Cap/Sales(5y)3.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.08%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%23.38%
EPS Next Y-8.1%
EPS Next 2Y6.95%
EPS Next 3Y11.13%
EPS Next 5Y15.68%
Revenue 1Y (TTM)-22.42%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.07%
Revenue Next Year-0.12%
Revenue Next 2Y0.78%
Revenue Next 3Y1.04%
Revenue Next 5Y2.28%
EBIT growth 1Y-28.65%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year75.27%
EBIT Next 3Y21.66%
EBIT Next 5Y18.43%
FCF growth 1Y664.24%
FCF growth 3Y-15.5%
FCF growth 5Y-4.76%
OCF growth 1Y68.98%
OCF growth 3Y-6.47%
OCF growth 5Y-2.89%