TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:THS - US89469A1043 - Common Stock
24.01 USD
+0.13 (+0.54%)
24.01 USD
0 (0%)
Taking everything into account, THS scores 3 out of 10 in our fundamental rating. THS was compared to 86 industry peers in the Food Products industry. THS may be in some trouble as it scores bad on both profitability and health. THS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year THS was profitable.
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
With a Return On Assets value of -6.40%, THS is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -19.15%, THS is doing worse than 67.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.78%, THS is in line with its industry, outperforming 58.14% of the companies in the same industry.
THS had an Average Return On Invested Capital over the past 3 years of 3.80%. This is significantly below the industry average of 28.69%.
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
Looking at the Operating Margin, with a value of 5.69%, THS is in the better half of the industry, outperforming 60.47% 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 17.33%, THS perfoms like the industry average, outperforming 45.35% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so THS is destroying value.
The number of shares outstanding for THS has been reduced compared to 1 year ago.
The number of shares outstanding for THS has been reduced compared to 5 years ago.
The debt/assets ratio for THS is higher compared to a year ago.
2.2 Solvency
THS has an Altman-Z score of 1.22. This is a bad value and indicates that THS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.22, THS is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of THS (14.88) 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.
THS has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: THS underperforms 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 14.88 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.66
WACC7.27%
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.
Looking at the Current ratio, with a value of 1.29, THS is doing worse than 65.12% of the companies in the same industry.
A Quick Ratio of 0.40 indicates that THS may have some problems paying its short term obligations.
With a Quick ratio value of 0.40, THS is not doing good in the industry: 82.56% 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
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.
Looking at the last year, THS shows a decrease in Revenue. The Revenue has decreased by -0.45% in the last year.
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)-0.45%
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 12.63% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.08% on average over the next years.
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.
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
With a Price/Earnings ratio of 15.20, THS is valued correctly.
67.44% of the companies in the same industry are more expensive than THS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.54, THS is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.64, the valuation of THS can be described as correct.
Based on the Price/Forward Earnings ratio, THS is valued a bit cheaper than 75.58% of the companies in the same industry.
THS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued a bit cheaper than 76.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of THS indicates a rather cheap valuation: THS is cheaper than 84.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.03 | ||
| EV/EBITDA | 7.62 |
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
No dividends for THS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
24.01
+0.13 (+0.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners106.36%
Inst Owner Change-3.8%
Ins Owners1.1%
Ins Owner Change0%
Market Cap1.21B
Revenue(TTM)3.34B
Net Income(TTM)-241.80M
Analysts52
Price Target22.95 (-4.41%)
Short Float %3.04%
Short Ratio1.25
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)7.14%
PT rev (3m)5.7%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-7.7%
EPS NY rev (3m)-7.19%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 12.64 | ||
| P/S | 0.36 | ||
| P/FCF | 12.03 | ||
| P/OCF | 5.19 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.62 |
EPS(TTM)1.58
EY6.58%
EPS(NY)1.9
Fwd EY7.91%
FCF(TTM)2
FCFY8.31%
OCF(TTM)4.63
OCFY19.27%
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 | 1.22 |
F-Score4
WACC7.27%
ROIC/WACC0.66
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.
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 3 / 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 -16.23% in the next year.