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 86 industry peers in the Food Products industry. While THS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
THS had a positive operating cash flow in the past year.
In multiple years THS reported negative net income over the last 5 years.
Of the past 5 years THS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of THS (0.51%) 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 in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THS is significantly below the industry average of 29.14%.
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
The Profit Margin of THS (0.62%) is comparable to the rest of the industry.
With a decent Operating Margin value of 6.13%, THS is doing good in the industry, outperforming 62.79% of the companies in the same industry.
THS's Operating Margin has been stable in the last couple of years.
THS has a Gross Margin (17.68%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
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.
THS has a worse Altman-Z score (1.25) than 65.12% of its industry peers.
THS has a debt to FCF ratio of 15.93. This is a negative value and a sign of low solvency as THS would need 15.93 years to pay back of 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 54.65% of 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.
Looking at the Debt to Equity ratio, with a value of 0.98, THS is doing worse than 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.68
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.26 indicates that THS should not have too much problems paying its short term obligations.
The Current ratio of THS (1.26) is worse than 66.28% of its industry peers.
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.
With a Quick ratio value of 0.38, THS is not doing good in the industry: 80.23% of the companies in the same industry are doing better.
| 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.
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.
THS shows a decrease in Revenue. In the last year, the revenue decreased by -2.26%.
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)-2.26%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.46%
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.
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
A Price/Earnings ratio of 15.10 indicates a correct valuation of THS.
Based on the Price/Earnings ratio, THS is valued a bit cheaper than 67.44% of the companies in the same industry.
THS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.41, which indicates a very decent valuation of THS.
83.72% 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 (34.59), we can say THS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
76.74% 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 77.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 7.41 |
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-1.3%
Ins Owners1.1%
Ins Owner Change-0.02%
Market Cap1.20B
Revenue(TTM)3.35B
Net Income(TTM)20.60M
Analysts70
Price Target21.42 (-10.23%)
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)-3.85%
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 | 7.41 |
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%-1.46%
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.