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WHOLE EARTH BRANDS INC (FREE) Stock Fundamental Analysis

NASDAQ:FREE - Nasdaq - US96684W1009 - Common Stock - Currency: USD

4.87  -0.01 (-0.2%)

After market: 4.88 +0.01 (+0.21%)

Fundamental Rating

3

Taking everything into account, FREE scores 3 out of 10 in our fundamental rating. FREE was compared to 91 industry peers in the Food Products industry. FREE has a bad profitability rating. Also its financial health evaluation is rather negative. FREE has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

FREE had negative earnings in the past year.
FREE had a positive operating cash flow in the past year.
In the past 5 years FREE reported 4 times negative net income.
In multiple years FREE reported negative operating cash flow during the last 5 years.
FREE Yearly Net Income VS EBIT VS OCF VS FCFFREE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 20M -20M -40M

1.2 Ratios

With a Return On Assets value of -3.39%, FREE is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
With a Return On Equity value of -11.83%, FREE is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
FREE's Return On Invested Capital of 2.49% is in line compared to the rest of the industry. FREE outperforms 45.65% of its industry peers.
FREE had an Average Return On Invested Capital over the past 3 years of 2.51%. This is significantly below the industry average of 9.02%.
Industry RankSector Rank
ROA -3.39%
ROE -11.83%
ROIC 2.49%
ROA(3y)-3.84%
ROA(5y)-3.74%
ROE(3y)-12.17%
ROE(5y)-10.07%
ROIC(3y)2.51%
ROIC(5y)N/A
FREE Yearly ROA, ROE, ROICFREE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 -5 -10 -15 -20

1.3 Margins

FREE has a Operating Margin of 4.14%. This is comparable to the rest of the industry: FREE outperforms 57.61% of its industry peers.
FREE has a Gross Margin of 27.13%. This is in the better half of the industry: FREE outperforms 65.22% of its industry peers.
FREE's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.14%
PM (TTM) N/A
GM 27.13%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.3%
GM growth 5YN/A
FREE Yearly Profit, Operating, Gross MarginsFREE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

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3

2. Health

2.1 Basic Checks

FREE 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, FREE has more shares outstanding
Compared to 1 year ago, FREE has an improved debt to assets ratio.
FREE Yearly Shares OutstandingFREE Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 10M 20M 30M 40M
FREE Yearly Total Debt VS Total AssetsFREE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

FREE has an Altman-Z score of 1.08. This is a bad value and indicates that FREE is not financially healthy and even has some risk of bankruptcy.
FREE has a worse Altman-Z score (1.08) than 71.74% of its industry peers.
FREE has a debt to FCF ratio of 65.58. This is a negative value and a sign of low solvency as FREE would need 65.58 years to pay back of all of its debts.
FREE has a Debt to FCF ratio (65.58) which is comparable to the rest of the industry.
FREE has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
FREE has a Debt to Equity ratio of 1.81. This is amonst the worse of the industry: FREE underperforms 83.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 65.58
Altman-Z 1.08
ROIC/WACC0.3
WACC8.19%
FREE Yearly LT Debt VS Equity VS FCFFREE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 3.34 indicates that FREE has no problem at all paying its short term obligations.
The Current ratio of FREE (3.34) is better than 86.96% of its industry peers.
FREE has a Quick Ratio of 1.06. This is a normal value and indicates that FREE is financially healthy and should not expect problems in meeting its short term obligations.
FREE's Quick ratio of 1.06 is fine compared to the rest of the industry. FREE outperforms 63.04% of its industry peers.
Industry RankSector Rank
Current Ratio 3.34
Quick Ratio 1.06
FREE Yearly Current Assets VS Current LiabilitesFREE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 21.69% over the past year.
FREE shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
FREE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.99% yearly.
EPS 1Y (TTM)21.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.19%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y25.99%
Revenue growth 5YN/A
Sales Q2Q%-2.2%

3.2 Future

The Earnings Per Share is expected to grow by 31.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y89.8%
EPS Next 2Y56.99%
EPS Next 3Y39.29%
EPS Next 5Y31.33%
Revenue Next Year4.85%
Revenue Next 2Y5.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.72%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FREE Yearly Revenue VS EstimatesFREE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
FREE Yearly EPS VS EstimatesFREE Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for FREE. In the last year negative earnings were reported.
FREE is valuated reasonably with a Price/Forward Earnings ratio of 11.65.
83.70% of the companies in the same industry are more expensive than FREE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, FREE is valued a bit cheaper.
Industry RankSector Rank
PE N/A
Fwd PE 11.65
FREE Price Earnings VS Forward Price EarningsFREE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as FREE.
The rest of the industry has a similar Price/Free Cash Flow ratio as FREE.
Industry RankSector Rank
P/FCF 32.66
EV/EBITDA 12.8
FREE Per share dataFREE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FREE's earnings are expected to grow with 39.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.99%
EPS Next 3Y39.29%

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0

5. Dividend

5.1 Amount

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

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WHOLE EARTH BRANDS INC

NASDAQ:FREE (8/2/2024, 8:06:44 PM)

After market: 4.88 +0.01 (+0.21%)

4.87

-0.01 (-0.2%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)08-06 2024-08-06/bmo
Earnings (Next)11-07 2024-11-07/bmo
Inst Owners0.2%
Inst Owner Change-99.66%
Ins Owners1.02%
Ins Owner Change0%
Market Cap212.23M
Analysts45.71
Price Target5.36 (10.06%)
Short Float %N/A
Short RatioN/A
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)-1372.55%
Min EPS beat(2)-1766.67%
Max EPS beat(2)-978.43%
EPS beat(4)0
Avg EPS beat(4)-795.57%
Min EPS beat(4)-1766.67%
Max EPS beat(4)-59.31%
EPS beat(8)0
Avg EPS beat(8)-2083.01%
EPS beat(12)1
Avg EPS beat(12)-1401.27%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)3.71%
Revenue beat(4)1
Avg Revenue beat(4)-3.97%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)3.71%
Revenue beat(8)1
Avg Revenue beat(8)-2.74%
Revenue beat(12)3
Avg Revenue beat(12)-2.49%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-160%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 11.65
P/S 0.39
P/FCF 32.66
P/OCF 18.16
P/B 0.91
P/tB N/A
EV/EBITDA 12.8
EPS(TTM)-0.65
EYN/A
EPS(NY)0.42
Fwd EY8.59%
FCF(TTM)0.15
FCFY3.06%
OCF(TTM)0.27
OCFY5.51%
SpS12.57
BVpS5.37
TBVpS-4.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.39%
ROE -11.83%
ROCE 3.15%
ROIC 2.49%
ROICexc 2.58%
ROICexgc 6.25%
OM 4.14%
PM (TTM) N/A
GM 27.13%
FCFM 1.19%
ROA(3y)-3.84%
ROA(5y)-3.74%
ROE(3y)-12.17%
ROE(5y)-10.07%
ROIC(3y)2.51%
ROIC(5y)N/A
ROICexc(3y)2.61%
ROICexc(5y)N/A
ROICexgc(3y)7.23%
ROICexgc(5y)N/A
ROCE(3y)3.18%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.3%
GM growth 5YN/A
F-Score6
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 65.58
Debt/EBITDA 8.79
Cap/Depr 20.48%
Cap/Sales 0.95%
Interest Coverage 0.54
Cash Conversion 24.33%
Profit Quality N/A
Current Ratio 3.34
Quick Ratio 1.06
Altman-Z 1.08
F-Score6
WACC8.19%
ROIC/WACC0.3
Cap/Depr(3y)37.14%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.72%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.69%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.19%
EPS Next Y89.8%
EPS Next 2Y56.99%
EPS Next 3Y39.29%
EPS Next 5Y31.33%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y25.99%
Revenue growth 5YN/A
Sales Q2Q%-2.2%
Revenue Next Year4.85%
Revenue Next 2Y5.24%
Revenue Next 3Y5.81%
Revenue Next 5Y5.72%
EBIT growth 1Y27.53%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year269.06%
EBIT Next 3Y65.32%
EBIT Next 5Y39.48%
FCF growth 1Y16.24%
FCF growth 3Y100.47%
FCF growth 5YN/A
OCF growth 1Y-40.17%
OCF growth 3Y34.27%
OCF growth 5YN/A