TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THS - US89469A1043 - Common Stock
23.89 USD
+0.19 (+0.8%)
23.89 USD
0 (0%)
Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 87 industry peers in the Food Products industry. THS may be in some trouble as it scores bad on both profitability and health. 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.
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.
THS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of THS (-6.40%) is worse than 68.97% of its industry peers.
THS's Return On Equity of -19.15% is on the low side compared to the rest of the industry. THS is outperformed by 68.97% of its industry peers.
THS has a Return On Invested Capital (4.78%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for THS is significantly below the industry average of 28.38%.
The 3 year average ROIC (3.80%) for THS is below the current ROIC(4.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.4% | ||
| ROE | -19.15% | ||
| ROIC | 4.78% |
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 Operating Margin (5.69%) which is comparable to the rest of the industry.
THS's Operating Margin has been stable in the last couple of years.
THS has a Gross Margin (17.33%) 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 | 5.69% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% |
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.
Compared to 5 years ago, THS has less shares outstanding
The debt/assets ratio for THS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that THS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of THS (1.21) is worse than 68.97% of its industry peers.
The Debt to FCF ratio of THS is 14.88, which is on the high side as it means it would take THS, 14.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.88, THS is in line with its industry, outperforming 57.47% of the companies in the same industry.
THS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
THS's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. THS is outperformed by 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.69
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.29 indicates that THS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, THS is doing worse than 64.37% of the companies in the same industry.
THS has a Quick Ratio of 1.29. This is a bad value and indicates that THS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.40, THS is doing worse than 80.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.4 |
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%.
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.
Looking at the last year, THS shows a decrease in Revenue. The Revenue has decreased by -0.45% in the last year.
The Revenue has been decreasing by -4.80% on average over the past years.
EPS 1Y (TTM)-10.73%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.89%
Revenue 1Y (TTM)-0.45%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.51%
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 17.48% on average per year.
The Revenue is expected to grow by 1.34% on average over the next years.
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
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.12, which indicates a correct valuation of THS.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 66.67% of the companies in the same industry.
THS is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of THS.
THS's Price/Forward Earnings ratio is rather cheap when compared to the industry. THS is cheaper than 81.61% of the companies in the same industry.
THS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 11.42 |
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.
Based on the Price/Free Cash Flow ratio, THS is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.97 | ||
| EV/EBITDA | 7.58 |
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 |
23.89
+0.19 (+0.8%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.66%
Inst Owner Change-3.83%
Ins Owners1.1%
Ins Owner Change-0.02%
Market Cap1.21B
Revenue(TTM)3.34B
Net Income(TTM)-241.80M
Analysts70
Price Target22.95 (-3.93%)
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)1
Avg EPS beat(2)18.93%
Min EPS beat(2)-24.76%
Max EPS beat(2)62.63%
EPS beat(4)2
Avg EPS beat(4)37.68%
Min EPS beat(4)-24.76%
Max EPS beat(4)115.94%
EPS beat(8)4
Avg EPS beat(8)15.53%
EPS beat(12)7
Avg EPS beat(12)17.04%
EPS beat(16)10
Avg EPS beat(16)19.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-2.11%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.11%
Max Revenue beat(4)-0.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.08%
Revenue beat(12)3
Avg Revenue beat(12)-1.42%
Revenue beat(16)5
Avg Revenue beat(16)-2.05%
PT rev (1m)5.7%
PT rev (3m)5.7%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)0.43%
EPS NY rev (1m)0.55%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.12 | ||
| Fwd PE | 11.42 | ||
| P/S | 0.36 | ||
| P/FCF | 11.97 | ||
| P/OCF | 5.16 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)1.58
EY6.61%
EPS(NY)2.09
Fwd EY8.76%
FCF(TTM)2
FCFY8.36%
OCF(TTM)4.63
OCFY19.37%
SpS66.22
BVpS25
TBVpS-11.75
PEG (NY)N/A
PEG (5Y)N/A
Graham Number29.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.4% | ||
| ROE | -19.15% | ||
| ROCE | 6.29% | ||
| ROIC | 4.78% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 12.57% | ||
| OM | 5.69% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% | ||
| FCFM | 3.01% |
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-Score4
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 81.63% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 66.19% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.21 |
F-Score4
WACC6.91%
ROIC/WACC0.69
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)-0.45%
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 1Y4.33%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year77.89%
EBIT Next 3Y24.54%
EBIT Next 5Y16.62%
FCF growth 1Y173.63%
FCF growth 3Y-15.5%
FCF growth 5Y-4.76%
OCF growth 1Y988.59%
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 6 / 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 3 / 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.