TREEHOUSE FOODS INC (THS)
US89469A1043 - Common Stock
THS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 92 industry peers in the Food Products industry. While THS is still in line with the averages on profitability rating, there are concerns on its financial health. THS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year THS was profitable.
In the past year THS had a positive cash flow from operations.
In multiple years THS reported negative net income over the last 5 years.
THS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
THS has a Return On Assets (1.66%) which is in line with its industry peers.
THS has a Return On Equity (4.10%) which is comparable to the rest of the industry.
The Return On Invested Capital of THS (6.75%) is better than 72.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THS is significantly below the industry average of 7.56%.
The last Return On Invested Capital (6.75%) for THS is above the 3 year average (2.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.1% | ||
| ROIC | 6.75% |
ROA(3y)-0.8%
ROA(5y)-1.83%
ROE(3y)-2.05%
ROE(5y)-5.03%
ROIC(3y)2.55%
ROIC(5y)3.48%
1.3 Margins
Looking at the Profit Margin, with a value of 1.58%, THS is in line with its industry, outperforming 50.55% of the companies in the same industry.
THS's Profit Margin has improved in the last couple of years.
THS's Operating Margin of 6.73% is fine compared to the rest of the industry. THS outperforms 69.23% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.47%, THS perfoms like the industry average, outperforming 48.35% of the companies in the same industry.
In the last couple of years the Gross Margin of THS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.73% | ||
| PM (TTM) | 1.58% | ||
| GM | 17.47% |
OM growth 3Y-1.18%
OM growth 5Y0.91%
PM growth 3Y69.57%
PM growth 5YN/A
GM growth 3Y-3.45%
GM growth 5Y-2.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THS is destroying value.
The number of shares outstanding for THS has been reduced compared to 1 year ago.
THS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, THS has a worse debt to assets ratio.
2.2 Solvency
THS has an Altman-Z score of 1.78. This is a bad value and indicates that THS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.78, THS perfoms like the industry average, outperforming 45.05% of the companies in the same industry.
THS has a debt to FCF ratio of 84.63. This is a negative value and a sign of low solvency as THS would need 84.63 years to pay back of all of its debts.
THS's Debt to FCF ratio of 84.63 is in line compared to the rest of the industry. THS outperforms 46.15% of its industry peers.
THS has a Debt/Equity ratio of 0.84. This is a neutral value indicating THS is somewhat dependend on debt financing.
The Debt to Equity ratio of THS (0.84) is worse than 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 84.63 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.89
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.50 indicates that THS should not have too much problems paying its short term obligations.
THS has a Current ratio of 1.50. This is comparable to the rest of the industry: THS outperforms 50.55% of its industry peers.
A Quick Ratio of 0.74 indicates that THS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, THS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 151.55% over the past year.
Measured over the past 5 years, THS shows a small growth in Earnings Per Share. The EPS has been growing by 2.09% on average per year.
THS shows a decrease in Revenue. In the last year, the revenue decreased by -5.91%.
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.64% yearly.
EPS 1Y (TTM)151.55%
EPS 3Y-3.67%
EPS 5Y2.09%
EPS growth Q2Q-21.43%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y-7.59%
Revenue growth 5Y-5.64%
Revenue growth Q2Q-8.57%
3.2 Future
The Earnings Per Share is expected to grow by 14.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y-7.15%
EPS Next 2Y6.91%
EPS Next 3Y14.15%
EPS Next 5YN/A
Revenue Next Year-0.49%
Revenue Next 2Y1.21%
Revenue Next 3Y2.18%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.71, the valuation of THS can be described as correct.
Based on the Price/Earnings ratio, THS is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
THS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
Based on the Price/Forward Earnings ratio of 15.85, the valuation of THS can be described as correct.
Based on the Price/Forward Earnings ratio, THS is valued a bit cheaper than 78.02% of the companies in the same industry.
THS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued cheaper than 86.81% of the companies in the same industry.
THS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 117.19 | ||
| EV/EBITDA | 6.95 |
4.3 Compensation for Growth
A more expensive valuation may be justified as THS's earnings are expected to grow with 14.15% in the coming years.
PEG (NY)N/A
PEG (5Y)7.03
EPS Next 2Y6.91%
EPS Next 3Y14.15%
5. Dividend
5.1 Amount
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TREEHOUSE FOODS INC
NYSE:THS (4/25/2024, 7:20:38 PM)
After market: 35.9 0 (0%)35.9
-0.85 (-2.31%)
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 Cap1.93B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 15.85 | ||
| 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)7.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.73% | ||
| PM (TTM) | 1.58% | ||
| GM | 17.47% | ||
| 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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.74 | ||
| 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)151.55%
EPS 3Y-3.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.15%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y-7.59%
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