TREEHOUSE FOODS INC (THS) Stock Fundamental Analysis
NYSE:THS - New York Stock Exchange, Inc. - US89469A1043 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to THS. THS was compared to 91 industry peers in the Food Products industry. Both the profitability and financial health of THS have multiple concerns. 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.
The reported net income has been mixed in the past 5 years: THS reported negative net income in multiple years.
THS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.17%, THS is doing worse than 62.64% of the companies in the same industry.
THS has a Return On Equity of 0.45%. This is in the lower half of the industry: THS underperforms 61.54% of its industry peers.
THS's Return On Invested Capital of 5.07% is in line compared to the rest of the industry. THS outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for THS is significantly below the industry average of 28.11%.
The 3 year average ROIC (3.80%) for THS is below the current ROIC(5.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.45% | ||
| ROIC | 5.07% |
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 (0.20%) is worse than 62.64% of its industry peers.
THS has a Operating Margin of 6.51%. This is in the better half of the industry: THS outperforms 65.93% 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 of 18.15%. This is comparable to the rest of the industry: THS outperforms 46.15% of its industry peers.
THS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.51% | ||
| PM (TTM) | 0.2% | ||
| GM | 18.15% |
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.
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
Based on the Altman-Z score of 1.23, 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 1.23, THS is doing worse than 65.93% of the companies in the same industry.
THS has a debt to FCF ratio of 11.17. This is a negative value and a sign of low solvency as THS would need 11.17 years to pay back of all of its debts.
THS has a Debt to FCF ratio of 11.17. This is comparable to the rest of the industry: THS outperforms 58.24% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that THS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, THS is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.17 | ||
| Altman-Z | 1.23 |
ROIC/WACC0.76
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.14 indicates that THS should not have too much problems paying its short term obligations.
The Current ratio of THS (1.14) is worse than 69.23% of its industry peers.
A Quick Ratio of 0.27 indicates that THS may have some problems paying its short term obligations.
THS's Quick ratio of 0.27 is on the low side compared to the rest of the industry. THS is outperformed by 91.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
THS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.18%, which is quite good.
THS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.84% yearly.
The Revenue for THS has decreased by -21.74% in the past year. This is quite bad
THS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.80% yearly.
EPS 1Y (TTM)16.18%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%200%
Revenue 1Y (TTM)-21.74%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-3.5%
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 17.04% on average per year.
The Revenue is expected to grow by 2.08% on average over the next years.
EPS Next Y-6.13%
EPS Next 2Y4.41%
EPS Next 3Y8.67%
EPS Next 5Y17.04%
Revenue Next Year-0.44%
Revenue Next 2Y0.6%
Revenue Next 3Y0.79%
Revenue Next 5Y2.08%
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
THS is valuated reasonably with a Price/Earnings ratio of 10.45.
THS's Price/Earnings ratio is a bit cheaper when compared to the industry. THS is cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of THS to the average of the S&P500 Index (27.30), we can say THS is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.88, the valuation of THS can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of THS indicates a rather cheap valuation: THS is cheaper than 89.01% of the companies listed in the same industry.
THS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, THS is valued cheaper than 80.22% of the companies in the same industry.
89.01% of the companies in the same industry are more expensive than THS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3Y8.67%
5. Dividend
5.1 Amount
No dividends for THS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21
+0.35 (+1.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners106.26%
Inst Owner Change0%
Ins Owners1.1%
Ins Owner Change2.36%
Market Cap1.06B
Analysts70
Price Target23.9 (13.81%)
Short Float %5.05%
Short Ratio3.6
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)1
Avg EPS beat(2)56.43%
Min EPS beat(2)-3.08%
Max EPS beat(2)115.94%
EPS beat(4)2
Avg EPS beat(4)57.98%
Min EPS beat(4)-3.08%
Max EPS beat(4)121.5%
EPS beat(8)4
Avg EPS beat(8)11.56%
EPS beat(12)8
Avg EPS beat(12)20.98%
EPS beat(16)9
Avg EPS beat(16)15.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.69%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.44%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)-0.38%
Revenue beat(8)2
Avg Revenue beat(8)-1.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.51%
Revenue beat(16)5
Avg Revenue beat(16)-4.17%
PT rev (1m)-10.87%
PT rev (3m)-30.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.24%
EPS NY rev (1m)3.34%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.45 | ||
| Fwd PE | 9.88 | ||
| P/S | 0.32 | ||
| P/FCF | 8.32 | ||
| P/OCF | 4.01 | ||
| P/B | 0.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.7 |
EPS(TTM)2.01
EY9.57%
EPS(NY)2.13
Fwd EY10.12%
FCF(TTM)2.52
FCFY12.01%
OCF(TTM)5.24
OCFY24.96%
SpS65.85
BVpS30.08
TBVpS-12.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.45% | ||
| ROCE | 6.67% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 15.48% | ||
| OM | 6.51% | ||
| PM (TTM) | 0.2% | ||
| GM | 18.15% | ||
| FCFM | 3.83% |
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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 11.17 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 90.39% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 71.87% | ||
| Profit Quality | 1873.53% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 1.23 |
F-Score5
WACC6.68%
ROIC/WACC0.76
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)16.18%
EPS 3Y17.9%
EPS 5Y-1.84%
EPS Q2Q%200%
EPS Next Y-6.13%
EPS Next 2Y4.41%
EPS Next 3Y8.67%
EPS Next 5Y17.04%
Revenue 1Y (TTM)-21.74%
Revenue growth 3Y6.02%
Revenue growth 5Y-4.8%
Sales Q2Q%-3.5%
Revenue Next Year-0.44%
Revenue Next 2Y0.6%
Revenue Next 3Y0.79%
Revenue Next 5Y2.08%
EBIT growth 1Y-8.23%
EBIT growth 3Y71.71%
EBIT growth 5Y-4.39%
EBIT Next Year77.19%
EBIT Next 3Y24.1%
EBIT Next 5Y18.24%
FCF growth 1Y161.46%
FCF growth 3Y-15.5%
FCF growth 5Y-4.76%
OCF growth 1Y338.47%
OCF growth 3Y-6.47%
OCF growth 5Y-2.89%