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THS

TreeHouse FoodsNYSE:THS Stock Report

Last Price

US$41.90

Market Cap

US$2.3b

7D

-2.0%

1Y

6.0%

Updated

19 Jan, 2022

Data

Company Financials +
THS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance2/6
Financial Health2/6
Dividends0/6

THS Stock Overview

TreeHouse Foods, Inc. manufactures and distributes private label packaged foods and beverages in the United States and internationally.

TreeHouse Foods Competitors

Kraft Heinz

NasdaqGS:KHC

US$45.6b

General Mills

NYSE:GIS

US$41.7b

Hershey

NYSE:HSY

US$41.1b

Hormel Foods

NYSE:HRL

US$26.7b

Price History & Performance

Summary of all time highs, changes and price drops for TreeHouse Foods
Historical stock prices
Current Share PriceUS$41.90
52 Week HighUS$55.50
52 Week LowUS$33.90
Beta0.56
1 Month Change4.07%
3 Month Change8.27%
1 Year Change6.02%
3 Year Change-27.42%
5 Year Change-42.85%
Change since IPO54.90%

Recent News & Updates

Jan 10
TreeHouse Foods (NYSE:THS) Takes On Some Risk With Its Use Of Debt

TreeHouse Foods (NYSE:THS) Takes On Some Risk With Its Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Dec 13
TreeHouse Foods (NYSE:THS) Has Some Way To Go To Become A Multi-Bagger

TreeHouse Foods (NYSE:THS) Has Some Way To Go To Become A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Dec 01

TreeHouse Foods: Uncertainty Exists But Shares Are Cheap

TreeHouse Foods has a history of mixed financial results, including sales that have declined in recent years and significant net losses. Even so, the company generates attractive cash flow and it is showing some signs of improvement. Add on the fact that it is trading at a low multiple and it could be a good prospect for value-oriented investors.

Shareholder Returns

THSUS FoodUS Market
7D-2.0%0.3%-4.6%
1Y6.0%13.6%7.7%

Return vs Industry: THS underperformed the US Food industry which returned 14.3% over the past year.

Return vs Market: THS underperformed the US Market which returned 10.2% over the past year.

Price Volatility

Is THS's price volatile compared to industry and market?
THS volatility
THS Average Weekly Movement5.2%
Food Industry Average Movement5.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: THS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: THS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186210,900Steve Oaklandhttps://www.treehousefoods.com

TreeHouse Foods, Inc. manufactures and distributes private label packaged foods and beverages in the United States and internationally. It operates in two segments, Meal Preparation, and Snacking & Beverages. The Meal Preparation segment provides aseptic cheese and pudding products; baking and mix powders; hot cereals; jams, preserves, and jellies; liquid and powdered non-dairy creamers; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pastas; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; refrigerated dough; single serve hot beverages; skillet dinners; and table and flavored syrups.

TreeHouse Foods Fundamentals Summary

How do TreeHouse Foods's earnings and revenue compare to its market cap?
THS fundamental statistics
Market CapUS$2.34b
Earnings (TTM)US$75.10m
Revenue (TTM)US$4.34b

31.1x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
THS income statement (TTM)
RevenueUS$4.34b
Cost of RevenueUS$3.55b
Gross ProfitUS$785.80m
ExpensesUS$710.70m
EarningsUS$75.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.35
Gross Margin18.11%
Net Profit Margin1.73%
Debt/Equity Ratio106.2%

How did THS perform over the long term?

See historical performance and comparison

Valuation

Is TreeHouse Foods undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: THS ($41.9) is trading below our estimate of fair value ($118.93)

Significantly Below Fair Value: THS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: THS is poor value based on its PE Ratio (31.1x) compared to the US Food industry average (21.4x).

PE vs Market: THS is poor value based on its PE Ratio (31.1x) compared to the US market (17x).


Price to Earnings Growth Ratio

PEG Ratio: THS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: THS is good value based on its PB Ratio (1.3x) compared to the US Food industry average (2.4x).


Future Growth

How is TreeHouse Foods forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

26.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THS's forecast earnings growth (26.2% per year) is above the savings rate (2%).

Earnings vs Market: THS's earnings (26.2% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: THS's revenue (1.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: THS's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THS's Return on Equity is forecast to be low in 3 years time (7%).


Past Performance

How has TreeHouse Foods performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THS has a large one-off loss of $150.3M impacting its September 30 2021 financial results.

Growing Profit Margin: THS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: THS has become profitable over the past 5 years, growing earnings by 34% per year.

Accelerating Growth: THS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: THS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (18.7%).


Return on Equity

High ROE: THS's Return on Equity (4%) is considered low.


Financial Health

How is TreeHouse Foods's financial position?


Financial Position Analysis

Short Term Liabilities: THS's short term assets ($1.1B) exceed its short term liabilities ($933.6M).

Long Term Liabilities: THS's short term assets ($1.1B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: THS's net debt to equity ratio (102.6%) is considered high.

Reducing Debt: THS's debt to equity ratio has increased from 104.4% to 106.2% over the past 5 years.

Debt Coverage: THS's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: THS's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Dividend

What is TreeHouse Foods's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate THS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate THS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if THS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if THS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of THS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Steve Oakland (60 yo)

3.83yrs

Tenure

US$6,250,046

Compensation

Mr. Steven T. Oakland, also known as Steve, has been the President and Chief Executive Officer of TreeHouse Foods, Inc. since March 26, 2018 and has been its Director since March 02, 2018. Mr. Oakland serv...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD6.25M) is above average for companies of similar size in the US market ($USD3.70M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: THS's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: THS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: THS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TreeHouse Foods, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: TreeHouse Foods, Inc.
  • Ticker: THS
  • Exchange: NYSE
  • Founded: 1862
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: US$2.337b
  • Shares outstanding: 55.78m
  • Website: https://www.treehousefoods.com

Number of Employees


Location

  • TreeHouse Foods, Inc.
  • 2021 Spring Road
  • Suite 600
  • Oak Brook
  • Illinois
  • 60523
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:43
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.