TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THS - US89469A1043 - Common Stock
23.32 USD
-0.08 (-0.34%)
23.32 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Of the past 5 years THS 4 years had a positive operating cash flow.
1.2 Ratios
THS has a Return On Assets of -6.40%. This is in the lower half of the industry: THS underperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of -19.15%, THS is doing worse than 65.52% of the companies in the same industry.
THS has a Return On Invested Capital of 4.78%. This is comparable to the rest of the industry: THS outperforms 58.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for THS is significantly below the industry average of 28.02%.
The last Return On Invested Capital (4.78%) for THS is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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 better Operating Margin (5.69%) than 60.92% of its industry peers.
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 of 17.33%. This is comparable to the rest of the industry: THS outperforms 47.13% of its industry peers.
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
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
THS has a worse debt/assets ratio than last year.
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.
THS has a Altman-Z score of 1.21. This is in the lower half of the industry: THS underperforms 66.67% 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.
THS has a Debt to FCF ratio (14.88) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that THS has dependencies on debt 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 74.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.68
WACC7.07%
2.3 Liquidity
A Current Ratio of 1.29 indicates that THS should not have too much problems paying its short term obligations.
The Current ratio of THS (1.29) is worse than 63.22% of its industry peers.
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
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.
THS shows a decrease in Revenue. In the last year, the revenue decreased by -0.45%.
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)-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 12.63% on average over the next years. This is quite good.
Based on estimates for the next years, THS will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.
EPS Next Y-16.23%
EPS Next 2Y-1.32%
EPS Next 3Y3.53%
EPS Next 5Y12.63%
Revenue Next Year-0.12%
Revenue Next 2Y0.29%
Revenue Next 3Y0.27%
Revenue Next 5Y1.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 14.76, which indicates a correct valuation of THS.
Based on the Price/Earnings ratio, THS is valued a bit cheaper than 64.37% 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 26.87.
The Price/Forward Earnings ratio is 12.28, which indicates a correct valuation of THS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 74.71% of the companies listed in the same industry.
THS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, THS is valued cheaply inside the industry as 81.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.32%
EPS Next 3Y3.53%
5. Dividend
5.1 Amount
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
23.32
-0.08 (-0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners105.51%
Inst Owner Change0%
Ins Owners1.1%
Ins Owner Change0.04%
Market Cap1.18B
Revenue(TTM)3.34B
Net Income(TTM)-241.80M
Analysts52
Price Target22.95 (-1.59%)
Short Float %2.03%
Short Ratio0.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)5.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.28 | ||
| P/S | 0.35 | ||
| P/FCF | 11.68 | ||
| P/OCF | 5.04 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.53 |
EPS(TTM)1.58
EY6.78%
EPS(NY)1.9
Fwd EY8.14%
FCF(TTM)2
FCFY8.56%
OCF(TTM)4.63
OCFY19.84%
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
WACC7.07%
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-16.23%
EPS Next 2Y-1.32%
EPS Next 3Y3.53%
EPS Next 5Y12.63%
Revenue 1Y (TTM)-0.45%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.51%
Revenue Next Year-0.12%
Revenue Next 2Y0.29%
Revenue Next 3Y0.27%
Revenue Next 5Y1.08%
EBIT growth 1Y4.33%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year73.96%
EBIT Next 3Y22.85%
EBIT Next 5Y14.95%
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.
What is the valuation status for THS stock?
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 3 / 10.
What are the PE and PB ratios of TREEHOUSE FOODS INC (THS) stock?
The Price/Earnings (PE) ratio for TREEHOUSE FOODS INC (THS) is 14.76 and the Price/Book (PB) ratio is 0.93.
What is the financial health of TREEHOUSE FOODS INC (THS) stock?
The financial health rating of TREEHOUSE FOODS INC (THS) is 2 / 10.