TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
NYSE:THS - New York Stock Exchange, Inc. - US89469A1043 - Common Stock - Currency: USD
Overall THS gets a fundamental rating of 3 out of 10. We evaluated THS against 91 industry peers in the Food Products industry. THS has a bad profitability rating. Also its financial health evaluation is rather negative. THS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year THS was profitable.
THS had a positive operating cash flow in the past year.
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
The Return On Assets of THS (0.68%) is worse than 62.35% of its industry peers.
Looking at the Return On Equity, with a value of 1.74%, THS is doing worse than 60.00% of the companies in the same industry.
THS's Return On Invested Capital of 4.72% is in line compared to the rest of the industry. THS outperforms 44.71% of its industry peers.
THS had an Average Return On Invested Capital over the past 3 years of 3.80%. This is significantly below the industry average of 9.02%.
The 3 year average ROIC (3.80%) for THS is below the current ROIC(4.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.74% | ||
| ROIC | 4.72% |
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
The Profit Margin of THS (0.80%) is worse than 61.18% of its industry peers.
The Operating Margin of THS (5.99%) is better than 61.18% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.64%, THS perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
In the last couple of years the Gross Margin of THS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 0.8% | ||
| GM | 17.64% |
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
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.
The number of shares outstanding for THS has been reduced compared to 5 years ago.
The debt/assets ratio for THS is higher compared to a year ago.
2.2 Solvency
THS has an Altman-Z score of 1.40. 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 (1.40) than 67.06% of its industry peers.
The Debt to FCF ratio of THS is 11.12, which is on the high side as it means it would take THS, 11.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.12, THS is in line with its industry, outperforming 48.24% of the companies in the same industry.
THS has a Debt/Equity ratio of 0.90. This is a neutral value indicating THS is somewhat dependend on debt financing.
THS's Debt to Equity ratio of 0.90 is on the low side compared to the rest of the industry. THS is outperformed by 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 11.12 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.67
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.36 indicates that THS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, THS perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that THS may have some problems paying its short term obligations.
THS has a Quick ratio of 0.63. This is in the lower half of the industry: THS underperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for THS have decreased strongly by -20.08% in the last year.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -22.42%.
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.80% yearly.
EPS 1Y (TTM)-20.08%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%23.38%
Revenue 1Y (TTM)-22.42%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-0.56%
3.2 Future
The Earnings Per Share is expected to grow by 12.38% on average over the next years. This is quite good.
THS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y2.33%
EPS Next 2Y5.6%
EPS Next 3Y12.38%
EPS Next 5YN/A
Revenue Next Year1.2%
Revenue Next 2Y0.72%
Revenue Next 3Y1.49%
Revenue Next 5Y6.41%
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 15.68, the valuation of THS can be described as correct.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 67.06% of the companies in the same industry.
THS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 15.32, the valuation of THS can be described as correct.
THS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 74.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, THS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 15.32 |
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 77.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, THS is valued a bit cheaper than 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.42 | ||
| EV/EBITDA | 7.68 |
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.
A more expensive valuation may be justified as THS's earnings are expected to grow with 12.38% in the coming years.
PEG (NY)6.72
PEG (5Y)N/A
EPS Next 2Y5.6%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
No dividends for THS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.58
+0.07 (+0.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners111.23%
Inst Owner Change-2.11%
Ins Owners0.86%
Ins Owner Change-0.05%
Market Cap1.57B
Analysts69.23
Price Target34.94 (14.26%)
Short Float %4.63%
Short Ratio3.87
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)0
Avg EPS beat(2)-2.77%
Min EPS beat(2)-3.08%
Max EPS beat(2)-2.46%
EPS beat(4)1
Avg EPS beat(4)-8.62%
Min EPS beat(4)-150.45%
Max EPS beat(4)121.5%
EPS beat(8)4
Avg EPS beat(8)5.65%
EPS beat(12)8
Avg EPS beat(12)17.26%
EPS beat(16)9
Avg EPS beat(16)9.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.6%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-1.21%
Revenue beat(4)1
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)1.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.43%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)5
Avg Revenue beat(16)-4.39%
PT rev (1m)2.25%
PT rev (3m)-15.22%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-28.81%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-16.38%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 15.32 | ||
| P/S | 0.47 | ||
| P/FCF | 12.42 | ||
| P/OCF | 5.89 | ||
| P/B | 1.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.68 |
EPS(TTM)1.95
EY6.38%
EPS(NY)2
Fwd EY6.53%
FCF(TTM)2.46
FCFY8.05%
OCF(TTM)5.19
OCFY16.98%
SpS65.51
BVpS30.25
TBVpS-9.44
PEG (NY)6.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 1.74% | ||
| ROCE | 6.21% | ||
| ROIC | 4.72% | ||
| ROICexc | 5.19% | ||
| ROICexgc | 16.73% | ||
| OM | 5.99% | ||
| PM (TTM) | 0.8% | ||
| GM | 17.64% | ||
| FCFM | 3.76% |
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-Score5
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 11.12 | ||
| Debt/EBITDA | 4.03 | ||
| Cap/Depr | 94.97% | ||
| Cap/Sales | 4.17% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 76.36% | ||
| Profit Quality | 468.77% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.4 |
F-Score5
WACC7.1%
ROIC/WACC0.67
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)-20.08%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%23.38%
EPS Next Y2.33%
EPS Next 2Y5.6%
EPS Next 3Y12.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.42%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-0.56%
Revenue Next Year1.2%
Revenue Next 2Y0.72%
Revenue Next 3Y1.49%
Revenue Next 5Y6.41%
EBIT growth 1Y-28.65%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year86.4%
EBIT Next 3Y36.75%
EBIT Next 5Y25.35%
FCF growth 1Y664.24%
FCF growth 3Y-15.5%
FCF growth 5Y-4.76%
OCF growth 1Y68.98%
OCF growth 3Y-6.47%
OCF growth 5Y-2.89%