TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
23.59 USD
0 (0%)
23.59 USD
0 (0%)
THS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. Both the profitability and financial health of THS have multiple concerns. THS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
THS had positive earnings in the past year.
In the past year THS had a positive cash flow from operations.
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
With a Return On Assets value of -6.40%, THS is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
With a Return On Equity value of -19.15%, THS is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
THS's Return On Invested Capital of 4.78% is in line compared to the rest of the industry. THS outperforms 56.32% 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 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
With a decent Operating Margin value of 5.69%, THS is doing good in the industry, outperforming 60.92% of the companies in the same industry.
In the last couple of years the Operating Margin of THS has remained more or less at the same level.
THS has a Gross Margin (17.33%) which is comparable to the rest of the 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 | 5.69% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
THS has an Altman-Z score of 1.21. This is a bad value and indicates that THS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.21, THS is doing worse than 66.67% of the companies in the same industry.
THS has a debt to FCF ratio of 14.88. This is a negative value and a sign of low solvency as THS would need 14.88 years to pay back of all of its debts.
THS has a Debt to FCF ratio (14.88) which is comparable to the rest of the industry.
THS has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
THS has a worse Debt to Equity ratio (1.18) than 77.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.69
WACC6.88%
2.3 Liquidity
THS has a Current Ratio of 1.29. 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 1.29, THS is not doing good in the industry: 64.37% of the companies in the same industry are doing better.
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.
THS has a Quick ratio of 0.40. This is in the lower half of the industry: THS underperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for THS have decreased strongly by -10.73% in the last year.
The Earnings Per Share has been decreasing by -1.84% on average over the past years.
Looking at the last year, THS shows a decrease in Revenue. The Revenue has decreased by -0.45% in the last year.
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.80% yearly.
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
The Earnings Per Share is expected to grow by 17.48% on average over the next years. This is quite good.
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
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 14.93, the valuation of THS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. THS is valued slightly cheaper when compared to this.
THS is valuated reasonably with a Price/Forward Earnings ratio of 11.28.
80.46% of the companies in the same industry are more expensive than THS, based on the Price/Forward Earnings ratio.
THS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than 74.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THS is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.82 | ||
| EV/EBITDA | 7.56 |
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 |
23.59
0 (0%)
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)3.34B
Net Income(TTM)-241.80M
Analysts70
Price Target22.95 (-2.71%)
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)-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 | 14.93 | ||
| Fwd PE | 11.28 | ||
| P/S | 0.36 | ||
| P/FCF | 11.82 | ||
| P/OCF | 5.1 | ||
| P/B | 0.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.56 |
EPS(TTM)1.58
EY6.7%
EPS(NY)2.09
Fwd EY8.87%
FCF(TTM)2
FCFY8.46%
OCF(TTM)4.63
OCFY19.62%
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
WACC6.88%
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.