TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
20.52 USD
-0.75 (-3.53%)
20.52 USD
0 (0%)
THS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. THS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
The reported net income has been mixed in the past 5 years: THS reported negative net income in multiple years.
Of the past 5 years THS 4 years had a positive operating cash flow.
1.2 Ratios
THS has a Return On Assets of 0.51%. This is in the lower half of the industry: THS underperforms 60.92% of its industry peers.
THS's Return On Equity of 1.35% is on the low side compared to the rest of the industry. THS is outperformed by 60.92% of its industry peers.
The Return On Invested Capital of THS (4.68%) is comparable to the rest of the industry.
THS had an Average Return On Invested Capital over the past 3 years of 3.80%. This is significantly below the industry average of 28.37%.
The 3 year average ROIC (3.80%) for THS is below the current ROIC(4.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 1.35% | ||
| ROIC | 4.68% |
ROA(3y)-0.49%
ROA(5y)-0.29%
ROE(3y)-1.25%
ROE(5y)-0.74%
ROIC(3y)3.8%
ROIC(5y)3.42%
1.3 Margins
THS has a Profit Margin (0.62%) which is in line with its industry peers.
THS has a better Operating Margin (6.13%) than 64.37% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.68%, THS perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
THS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.13% | ||
| PM (TTM) | 0.62% | ||
| GM | 17.68% |
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%
2. Health
2.1 Basic Checks
THS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, THS has less shares outstanding
The number of shares outstanding for THS has been reduced compared to 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 1.22. This is a bad value and indicates that THS is not financially healthy and even has some risk of bankruptcy.
THS has a Altman-Z score of 1.22. This is in the lower half of the industry: THS underperforms 67.82% of its industry peers.
The Debt to FCF ratio of THS is 15.93, which is on the high side as it means it would take THS, 15.93 years of fcf income to pay off all of its debts.
THS's Debt to FCF ratio of 15.93 is in line compared to the rest of the industry. THS outperforms 56.32% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that THS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, THS is not doing good in the industry: 71.26% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.69
WACC6.76%
2.3 Liquidity
A Current Ratio of 1.26 indicates that THS should not have too much problems paying its short term obligations.
THS has a worse Current ratio (1.26) than 67.82% of its industry peers.
A Quick Ratio of 0.38 indicates that THS may have some problems paying its short term obligations.
With a Quick ratio value of 0.38, THS is not doing good in the industry: 81.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
THS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.12%, which is quite good.
THS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.84% yearly.
THS shows a decrease in Revenue. In the last year, the revenue decreased by -1.14%.
The Revenue has been decreasing by -4.80% on average over the past years.
EPS 1Y (TTM)18.12%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.8%
3.2 Future
Based on estimates for the next years, THS will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.48% on average per year.
THS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.34% yearly.
EPS Next Y-9.74%
EPS Next 2Y3.04%
EPS Next 3Y7.74%
EPS Next 5Y17.48%
Revenue Next Year0.06%
Revenue Next 2Y0.59%
Revenue Next 3Y0.78%
Revenue Next 5Y1.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.86 indicates a reasonable valuation of THS.
Based on the Price/Earnings ratio, THS is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
THS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
THS is valuated reasonably with a Price/Forward Earnings ratio of 9.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THS indicates a rather cheap valuation: THS is cheaper than 88.51% of the companies listed in the same industry.
THS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than the industry average as 77.01% of the companies are valued more expensively.
THS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. THS is cheaper than 80.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 7.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.04%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.52
-0.75 (-3.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.66%
Inst Owner Change0.01%
Ins Owners1.1%
Ins Owner Change0.37%
Market Cap1.04B
Analysts70
Price Target21.71 (5.8%)
Short Float %6%
Short Ratio3.34
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)89.28%
Min EPS beat(2)62.63%
Max EPS beat(2)115.94%
EPS beat(4)2
Avg EPS beat(4)43.26%
Min EPS beat(4)-3.08%
Max EPS beat(4)115.94%
EPS beat(8)5
Avg EPS beat(8)19.54%
EPS beat(12)8
Avg EPS beat(12)20.22%
EPS beat(16)10
Avg EPS beat(16)20.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.49%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)-0.18%
Revenue beat(8)1
Avg Revenue beat(8)-2.04%
Revenue beat(12)3
Avg Revenue beat(12)-3.99%
Revenue beat(16)5
Avg Revenue beat(16)-3.86%
PT rev (1m)0%
PT rev (3m)-9.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 9.91 | ||
| P/S | 0.31 | ||
| P/FCF | 10.99 | ||
| P/OCF | 4.37 | ||
| P/B | 0.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)1.89
EY9.21%
EPS(NY)2.07
Fwd EY10.09%
FCF(TTM)1.87
FCFY9.1%
OCF(TTM)4.69
OCFY22.86%
SpS66.17
BVpS30.2
TBVpS-12.55
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 1.35% | ||
| ROCE | 6.16% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 13.55% | ||
| OM | 6.13% | ||
| PM (TTM) | 0.62% | ||
| GM | 17.68% | ||
| FCFM | 2.82% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 90.37% | ||
| Cap/Sales | 4.27% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 65.35% | ||
| Profit Quality | 457.77% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.22 |
F-Score6
WACC6.76%
ROIC/WACC0.69
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)18.12%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.38%
EPS Next Y-9.74%
EPS Next 2Y3.04%
EPS Next 3Y7.74%
EPS Next 5Y17.48%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.8%
Revenue Next Year0.06%
Revenue Next 2Y0.59%
Revenue Next 3Y0.78%
Revenue Next 5Y1.34%
EBIT growth 1Y21.85%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year77.89%
EBIT Next 3Y24.54%
EBIT Next 5Y16.62%
FCF growth 1Y136.75%
FCF growth 3Y-15.5%
FCF growth 5Y-4.76%
OCF growth 1Y236.23%
OCF growth 3Y-6.47%
OCF growth 5Y-2.89%