TREEHOUSE FOODS INC (THS)

US89469A1043 - Common Stock

36.53  -0.21 (-0.57%)

Fundamental Rating

3

Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 91 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 has a correct valuation and a medium growth rate.



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.
Of the past 5 years THS 4 years had a positive operating cash flow.

1.2 Ratios

THS's Return On Assets of 1.29% is in line compared to the rest of the industry. THS outperforms 46.67% of its industry peers.
THS has a Return On Equity (3.19%) which is in line with its industry peers.
THS's Return On Invested Capital of 4.58% is in line compared to the rest of the industry. THS outperforms 56.67% of its industry peers.
Industry RankSector Rank
ROA 1.29%
ROE 3.19%
ROIC 4.58%
ROA(3y)-0.8%
ROA(5y)-1.83%
ROE(3y)-2.05%
ROE(5y)-5.03%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

THS has a Profit Margin of 1.51%. This is comparable to the rest of the industry: THS outperforms 48.89% of its industry peers.
In the last couple of years the Profit Margin of THS has grown nicely.
THS has a Operating Margin of 5.62%. This is in the better half of the industry: THS outperforms 65.56% of its industry peers.
THS's Operating Margin has declined in the last couple of years.
THS has a Gross Margin (16.54%) which is comparable to the rest of the industry.
THS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.62%
PM (TTM) 1.51%
GM 16.54%
OM growth 3Y-14.01%
OM growth 5Y-7.17%
PM growth 3Y69.57%
PM growth 5YN/A
GM growth 3Y-5.07%
GM growth 5Y-3.18%

2

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
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

Based on the Altman-Z score of 1.53, we must say that THS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.53, THS is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 84.63, THS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that THS is somewhat dependend on debt financing.
THS has a worse Debt to Equity ratio (0.84) than 62.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF 84.63
Altman-Z 1.53
ROIC/WACC0.62
WACC7.44%

2.3 Liquidity

A Current Ratio of 1.50 indicates that THS should not have too much problems paying its short term obligations.
THS's Current ratio of 1.50 is in line compared to the rest of the industry. THS outperforms 43.33% of its industry peers.
THS has a Quick Ratio of 1.50. This is a bad value and indicates that THS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of THS (0.74) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.5
Quick Ratio 0.74

4

3. Growth

3.1 Past

THS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.55%, which is quite impressive.
THS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.09% yearly.
Looking at the last year, THS shows a very negative growth in Revenue. The Revenue has decreased by -23.62% in the last year.
Measured over the past years, THS shows a decrease in Revenue. The Revenue has been decreasing by -5.64% on average per year.
EPS 1Y (TTM)151.55%
EPS 3Y-3.67%
EPS 5Y2.09%
EPS growth Q2Q-21.43%
Revenue 1Y (TTM)-23.62%
Revenue growth 3Y-7.59%
Revenue growth 5Y-5.64%
Revenue growth Q2Q-8.57%

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 19.76% on average per year.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y6.85%
EPS Next 2Y13%
EPS Next 3Y19.76%
EPS Next 5YN/A
Revenue Next Year3.09%
Revenue Next 2Y3.25%
Revenue Next 3Y6.61%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.97 indicates a correct valuation of THS.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 75.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of THS to the average of the S&P500 Index (26.00), we can say THS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.01, THS is valued correctly.
76.67% of the companies in the same industry are more expensive than THS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. THS is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.97
Fwd PE 14.01

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 78.89% of the companies listed in the same industry.
THS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 122.43
EV/EBITDA 9.17

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates THS does not grow enough to justify the current Price/Earnings ratio.
THS's earnings are expected to grow with 19.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.18
PEG (5Y)7.16
EPS Next 2Y13%
EPS Next 3Y19.76%

0

5. Dividend

5.1 Amount

THS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

TREEHOUSE FOODS INC

NYSE:THS (2/22/2024, 12:37:05 PM)

36.53

-0.21 (-0.57%)

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 Cap2.02B
Analysts
Price Target
Dividend
Industry RankSector 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)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 RankSector Rank
PE 14.97
Fwd PE 14.01
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)2.18
PEG (5Y)7.16
Profitability
Industry RankSector Rank
ROA 1.29%
ROE 3.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.62%
PM (TTM) 1.51%
GM 16.54%
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 Turnover0.85
Health
Industry RankSector 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 Y6.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.62%
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