TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - NYSE:THS - US89469A1043 - Common Stock
19.4 USD
+0.17 (+0.88%)
19.16 USD
-0.24 (-1.24%)
THS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. There are concerns on the financial health of THS while its profitability can be described as average. THS is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years THS 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.51%, THS is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
With a Return On Equity value of 1.35%, THS is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
THS has a Return On Invested Capital of 4.68%. This is comparable to the rest of the industry: THS outperforms 52.87% 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 28.34%.
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 41.38% of its industry peers.
With a decent Operating Margin value of 6.13%, THS is doing good in the industry, outperforming 64.37% of the companies in the same industry.
THS's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.68%, THS perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
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
THS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, THS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, 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 1.19, THS is doing worse than 67.82% 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 of 15.93. This is comparable to the rest of the industry: THS outperforms 56.32% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that THS is somewhat dependend on debt financing.
THS has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: THS underperforms 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 15.93 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.7
WACC6.64%
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.
Looking at the Current ratio, with a value of 1.26, THS is doing worse than 67.82% of the companies in the same industry.
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 82.76% 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.
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 -1.14%.
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.
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-9.74%
EPS Next 2Y3.04%
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
Based on the Price/Earnings ratio of 10.26, the valuation of THS can be described as reasonable.
THS's Price/Earnings ratio is rather cheap when compared to the industry. THS is cheaper than 85.06% of the companies in the same industry.
When comparing the Price/Earnings ratio of THS to the average of the S&P500 Index (27.29), we can say THS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.37, the valuation of THS can be described as very reasonable.
91.95% 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 (22.85), we can say THS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
THS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. THS is cheaper than 75.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, THS is valued cheaper than 81.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.04%
EPS Next 3Y7.74%
5. Dividend
5.1 Amount
No dividends for THS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.4
+0.17 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.66%
Inst Owner Change0.01%
Ins Owners1.1%
Ins Owner Change0.37%
Market Cap979.70M
Analysts70
Price Target21.71 (11.91%)
Short Float %6%
Short Ratio3.34
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)0%
EPS NY rev (3m)-3.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.29 | ||
| P/FCF | 10.39 | ||
| P/OCF | 4.14 | ||
| P/B | 0.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.8 |
EPS(TTM)1.89
EY9.74%
EPS(NY)2.07
Fwd EY10.67%
FCF(TTM)1.87
FCFY9.63%
OCF(TTM)4.69
OCFY24.18%
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 | 1.19 |
F-Score6
WACC6.64%
ROIC/WACC0.7
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 2Y3.04%
EPS Next 3Y7.74%
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 Year77.89%
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%