TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
23.55 USD
-0.31 (-1.3%)
23.61 USD
+0.06 (+0.25%)
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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
With a Return On Assets value of 0.51%, THS perfoms like the industry average, outperforming 42.53% of the companies in the same industry.
THS has a Return On Equity of 1.35%. This is comparable to the rest of the industry: THS outperforms 42.53% of its industry peers.
THS has a Return On Invested Capital (4.68%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for THS 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 comparable to the rest of the industry.
THS has a Operating Margin of 6.13%. This is in the better half of the industry: THS outperforms 63.22% of its industry peers.
In the last couple of years the Operating Margin of THS has remained more or less at the same level.
Looking at the Gross Margin, with a value of 17.68%, THS is in line with its industry, 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THS 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.
THS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.24, we must say that THS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.24, THS is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 15.93, THS is in line with its industry, outperforming 54.02% of the companies in the same industry.
THS has a Debt/Equity ratio of 0.98. This is a neutral value indicating THS is somewhat dependend on debt financing.
THS has a worse Debt to Equity ratio (0.98) than 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.68
WACC6.92%
2.3 Liquidity
THS has a Current Ratio of 1.26. This is a normal value and indicates that THS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.26, THS is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
A Quick Ratio of 0.38 indicates that THS may have some problems paying its short term obligations.
THS's Quick ratio of 0.38 is on the low side compared to the rest of the industry. THS is outperformed by 80.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
THS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.73%.
THS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.84% yearly.
Looking at the last year, THS shows a decrease in Revenue. The Revenue has decreased by -2.26% in the last year.
Measured over the past years, THS shows a decrease in Revenue. The Revenue has been decreasing by -4.80% on average per year.
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%-1.51%
3.2 Future
THS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.48% yearly.
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 14.91, the valuation of THS can be described as correct.
Based on the Price/Earnings ratio, THS is valued a bit cheaper than 67.82% 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 25.56.
A Price/Forward Earnings ratio of 11.26 indicates a reasonable valuation of THS.
81.61% 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 34.62. THS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
THS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. THS is cheaper than 78.16% 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 78.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.61 | ||
| EV/EBITDA | 7.38 |
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
No dividends for THS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.55
-0.31 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.66%
Inst Owner Change-3.81%
Ins Owners1.1%
Ins Owner Change-0.03%
Market Cap1.19B
Revenue(TTM)3.35B
Net Income(TTM)20.60M
Analysts70
Price Target22.95 (-2.55%)
Short Float %4.07%
Short Ratio1.73
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)-1.33%
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 | 14.91 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.36 | ||
| P/FCF | 12.61 | ||
| P/OCF | 5.02 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.38 |
EPS(TTM)1.58
EY6.71%
EPS(NY)2.09
Fwd EY8.88%
FCF(TTM)1.87
FCFY7.93%
OCF(TTM)4.69
OCFY19.92%
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
WACC6.92%
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%-1.51%
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.