TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
17.43 USD
-0.03 (-0.17%)
17.43 USD
0 (0%)
Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 89 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 decent growth rate and is not valued too expensively.
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.
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
THS has a worse Return On Assets (0.51%) than 61.80% of its industry peers.
THS has a Return On Equity of 1.35%. This is in the lower half of the industry: THS underperforms 61.80% of its industry peers.
THS's Return On Invested Capital of 4.68% is in line compared to the rest of the industry. THS outperforms 51.69% 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 28.32%.
The last Return On Invested Capital (4.68%) for THS is above the 3 year average (3.80%), which is a sign of increasing profitability.
| 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.
The Operating Margin of THS (6.13%) is better than 62.92% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 17.68%, THS is in line with its industry, outperforming 46.07% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), THS is destroying value.
THS has less shares outstanding than it did 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
THS has an Altman-Z score of 1.17. 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 1.17, THS is doing worse than 68.54% of the companies in the same industry.
The Debt to FCF ratio of THS is 15.93, which is on the high side as it means it would take THS, 15.93 years of fcf income to pay off all of its debts.
THS's Debt to FCF ratio of 15.93 is in line compared to the rest of the industry. THS outperforms 53.93% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that THS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.98, THS is not doing good in the industry: 69.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.71
WACC6.62%
2.3 Liquidity
A Current Ratio of 1.26 indicates that THS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, THS is doing worse than 66.29% of the companies in the same industry.
THS has a Quick Ratio of 1.26. This is a bad value and indicates that THS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of THS (0.38) is worse than 84.27% 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 growth in Earnings Per Share. In the last year, the EPS has been growing by 18.12%, which is quite good.
The Earnings Per Share has been decreasing by -1.84% on average over the past years.
The Revenue has decreased by -1.14% in the past 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)18.12%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.8%
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-9.74%
EPS Next 2Y3.39%
EPS Next 3Y7.44%
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
Based on the Price/Earnings ratio of 9.22, the valuation of THS can be described as reasonable.
84.27% of the companies in the same industry are more expensive than THS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.27. THS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.36, the valuation of THS can be described as very reasonable.
97.75% of the companies in the same industry are more expensive than THS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of THS to the average of the S&P500 Index (22.77), we can say THS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than the industry average as 79.78% of the companies are valued more expensively.
84.27% of the companies in the same industry are more expensive than THS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.39%
EPS Next 3Y7.44%
5. Dividend
5.1 Amount
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.43
-0.03 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners105.63%
Inst Owner Change1.7%
Ins Owners1.1%
Ins Owner Change2%
Market Cap880.22M
Analysts70
Price Target21.71 (24.56%)
Short Float %6.45%
Short Ratio4.25
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)0%
PT rev (3m)-9.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.16%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.26 | ||
| P/FCF | 9.33 | ||
| P/OCF | 3.72 | ||
| P/B | 0.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.53 |
EPS(TTM)1.89
EY10.84%
EPS(NY)2.08
Fwd EY11.96%
FCF(TTM)1.87
FCFY10.71%
OCF(TTM)4.69
OCFY26.91%
SpS66.17
BVpS30.2
TBVpS-12.55
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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 | 1.17 |
F-Score6
WACC6.62%
ROIC/WACC0.71
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)18.12%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%-41.38%
EPS Next Y-9.74%
EPS Next 2Y3.39%
EPS Next 3Y7.44%
EPS Next 5Y17.48%
Revenue 1Y (TTM)-1.14%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%0.8%
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 Year77.83%
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%