TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
23.86 USD
+0.1 (+0.42%)
23.86 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. THS has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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
THS has a Return On Assets (0.51%) which is comparable to the rest of the industry.
THS has a Return On Equity (1.35%) which is comparable to the rest of the industry.
THS has a Return On Invested Capital (4.68%) 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 28.87%.
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 of 0.62%. This is comparable to the rest of the industry: THS outperforms 43.68% of its industry peers.
The Operating Margin of THS (6.13%) is better than 63.22% of its industry peers.
THS's Operating Margin has been stable in the last couple of years.
THS has a Gross Margin (17.68%) 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 | 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
THS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 1.25, we must say that THS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, THS is doing worse than 65.52% 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 has a Debt to FCF ratio (15.93) which is in line with its industry peers.
THS has a Debt/Equity ratio of 0.98. This is a neutral value indicating THS is somewhat dependend on debt financing.
THS's Debt to Equity ratio of 0.98 is on the low side compared to the rest of the industry. THS is outperformed by 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.25 |
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.
THS has a worse Current ratio (1.26) than 65.52% of its industry peers.
A Quick Ratio of 0.38 indicates that THS may have some problems paying its short term obligations.
THS has a worse Quick ratio (0.38) than 80.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The earnings per share for THS have decreased strongly by -10.73% in the last year.
THS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.84% yearly.
The Revenue has decreased by -2.26% in the past 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)-2.26%
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.
THS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.34% yearly.
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
With a Price/Earnings ratio of 15.10, THS is valued correctly.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 68.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, THS is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.41, which indicates a very decent valuation of THS.
Based on the Price/Forward Earnings ratio, THS is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
THS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
78.16% of the companies in the same industry are more expensive than THS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 77.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 7.42 |
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
THS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.86
+0.1 (+0.42%)
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 Cap1.20B
Revenue(TTM)3.35B
Net Income(TTM)20.60M
Analysts70
Price Target22.95 (-3.81%)
Short Float %4.42%
Short Ratio2.44
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 | 15.1 | ||
| Fwd PE | 11.41 | ||
| P/S | 0.36 | ||
| P/FCF | 12.78 | ||
| P/OCF | 5.09 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.42 |
EPS(TTM)1.58
EY6.62%
EPS(NY)2.09
Fwd EY8.77%
FCF(TTM)1.87
FCFY7.83%
OCF(TTM)4.69
OCFY19.66%
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 | 1.25 |
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.