TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THS - US89469A1043 - Common Stock
23.98 USD
+0.26 (+1.1%)
23.98 USD
0 (0%)
Overall THS gets a fundamental rating of 3 out of 10. We evaluated THS against 87 industry peers in the Food Products industry. Both the profitability and financial health of THS have multiple concerns. 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.
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
Looking at the Return On Assets, with a value of -6.40%, THS is doing worse than 66.67% of the companies in the same industry.
THS has a Return On Equity of -19.15%. This is in the lower half of the industry: THS underperforms 65.52% of its industry peers.
The Return On Invested Capital of THS (4.78%) 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 28.02%.
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 (17.33%) which is in line with 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
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.
THS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for THS is higher compared to a year ago.
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.
The Altman-Z score of THS (1.21) is worse than 66.67% of its industry peers.
THS has a debt to FCF ratio of 14.88. This is a negative value and a sign of low solvency as THS would need 14.88 years to pay back of 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.
With a Debt to Equity ratio value of 1.18, THS is not doing good in the industry: 74.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.67
WACC7.1%
2.3 Liquidity
THS has a Current Ratio of 1.29. This is a normal value and indicates that THS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.29, THS is not doing good in the industry: 63.22% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.40, THS is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been decreasing by -1.84% on average over the past years.
Looking at the last year, THS shows a decrease in Revenue. The Revenue has decreased by -0.45% in the last 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)-0.45%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-1.51%
3.2 Future
THS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
THS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.
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.
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
THS is valuated correctly with a Price/Earnings ratio of 15.18.
Compared to the rest of the industry, the Price/Earnings ratio of THS indicates a somewhat cheap valuation: THS is cheaper than 65.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of THS to the average of the S&P500 Index (27.19), we can say THS is valued slightly cheaper.
THS is valuated correctly with a Price/Forward Earnings ratio of 12.63.
Based on the Price/Forward Earnings ratio, THS is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, THS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.18 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than the industry average as 74.71% 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 | 12.01 | ||
| EV/EBITDA | 7.58 |
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% |
23.98
+0.26 (+1.1%)
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 Cap1.21B
Revenue(TTM)3.34B
Net Income(TTM)-241.80M
Analysts52
Price Target22.95 (-4.3%)
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 | 15.18 | ||
| Fwd PE | 12.63 | ||
| P/S | 0.36 | ||
| P/FCF | 12.01 | ||
| P/OCF | 5.18 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.58 |
EPS(TTM)1.58
EY6.59%
EPS(NY)1.9
Fwd EY7.92%
FCF(TTM)2
FCFY8.32%
OCF(TTM)4.63
OCFY19.3%
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
WACC7.1%
ROIC/WACC0.67
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 15.18 and the Price/Book (PB) ratio is 0.96.
What is the financial health of TREEHOUSE FOODS INC (THS) stock?
The financial health rating of TREEHOUSE FOODS INC (THS) is 2 / 10.