TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
23.76 USD
+0.16 (+0.68%)
23.76 USD
0 (0%)
Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 86 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.
1. Profitability
1.1 Basic Checks
THS had positive earnings in the past year.
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
The Return On Assets of THS (0.51%) is comparable to the rest of the industry.
THS has a Return On Equity (1.35%) which is in line with its industry peers.
THS has a Return On Invested Capital (4.68%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THS is significantly below the industry average of 29.14%.
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 of 0.62%. This is comparable to the rest of the industry: THS outperforms 43.02% of its industry peers.
The Operating Margin of THS (6.13%) is better than 62.79% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
THS has a Gross Margin (17.68%) which is in line with its industry peers.
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.
THS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, THS has less shares outstanding
Compared to 1 year ago, THS has a worse debt to assets ratio.
2.2 Solvency
THS has an Altman-Z score of 1.24. This is a bad value and indicates that THS is not financially healthy and even has some risk of bankruptcy.
THS has a worse Altman-Z score (1.24) than 65.12% of its industry peers.
THS has a debt to FCF ratio of 15.93. This is a negative value and a sign of low solvency as THS would need 15.93 years to pay back of all of its debts.
The Debt to FCF ratio of THS (15.93) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.98 indicates that THS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, THS is doing worse than 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.68
WACC6.91%
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 66.28% of its industry peers.
THS has a Quick Ratio of 1.26. This is a bad value and indicates that THS is not financially healthy enough and could expect problems in meeting its short term obligations.
THS has a worse Quick ratio (0.38) than 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The earnings per share for THS have decreased strongly by -10.73% in the last year.
Measured over the past years, THS shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.84% on average per year.
THS shows a decrease in Revenue. In the last year, the revenue decreased by -2.26%.
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.80% yearly.
EPS 1Y (TTM)-10.73%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.89%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.46%
3.2 Future
The Earnings Per Share is expected to grow by 17.48% on average over the next years. This is quite good.
Based on estimates for the next years, THS will show a small growth in Revenue. The Revenue will grow by 1.34% on average per year.
EPS Next Y-9.24%
EPS Next 2Y3.57%
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
Based on the Price/Earnings ratio of 15.04, the valuation of THS can be described as correct.
Based on the Price/Earnings ratio, THS is valued a bit cheaper than 67.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, THS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.36, the valuation of THS can be described as very reasonable.
83.72% of the companies in the same industry are more expensive than THS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, THS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
THS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. THS is cheaper than 76.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 79.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 7.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.57%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.76
+0.16 (+0.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.66%
Inst Owner Change-1.3%
Ins Owners1.1%
Ins Owner Change-0.02%
Market Cap1.20B
Revenue(TTM)3.35B
Net Income(TTM)20.60M
Analysts70
Price Target21.42 (-9.85%)
Short Float %4.42%
Short Ratio2.44
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)-1.34%
PT rev (3m)-1.34%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-3.85%
EPS NY rev (1m)0.55%
EPS NY rev (3m)-3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 11.36 | ||
| P/S | 0.36 | ||
| P/FCF | 12.72 | ||
| P/OCF | 5.06 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.39 |
EPS(TTM)1.58
EY6.65%
EPS(NY)2.09
Fwd EY8.8%
FCF(TTM)1.87
FCFY7.86%
OCF(TTM)4.69
OCFY19.74%
SpS66.17
BVpS30.2
TBVpS-12.55
PEG (NY)N/A
PEG (5Y)N/A
Graham Number32.77
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%
ROICexgc growth 3Y106.44%
ROICexgc 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 | 1.24 |
F-Score6
WACC6.91%
ROIC/WACC0.68
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)-10.73%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.89%
EPS Next Y-9.24%
EPS Next 2Y3.57%
EPS Next 3Y7.74%
EPS Next 5Y17.48%
Revenue 1Y (TTM)-2.26%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.46%
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%
TREEHOUSE FOODS INC / THS FAQ
What is the fundamental rating for THS stock?
ChartMill assigns a fundamental rating of 3 / 10 to THS.
Can you provide the valuation status for TREEHOUSE FOODS INC?
ChartMill assigns a valuation rating of 5 / 10 to TREEHOUSE FOODS INC (THS). This can be considered as Fairly Valued.
Can you provide the profitability details for TREEHOUSE FOODS INC?
TREEHOUSE FOODS INC (THS) has a profitability rating of 4 / 10.
What is the earnings growth outlook for TREEHOUSE FOODS INC?
The Earnings per Share (EPS) of TREEHOUSE FOODS INC (THS) is expected to decline by -9.24% in the next year.