TreeHouse Foods, Inc. (THS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Freshpet, Inc.

Balchem Corp.

Lancaster Colony Corp.

J&J Snack Foods Corp.

Ingredion, Inc.

Flowers Foods, Inc.

Nomad Foods Ltd.

Ashland, Inc.

Post Holdings, Inc.

TreeHouse Foods, Inc.

Hostess Brands, Inc.

Why is TreeHouse Foods, Inc. ?

Poor Management Efficiency with a low ROCE of 6.17%

The company has been able to generate a Return on Capital Employed (avg) of 6.17% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -5.06% and Operating profit at -5.48% over the last 5 years

Flat results in Jun 25

PRE-TAX PROFIT(Q) At USD 13.1 MM has Fallen at -53.46%
NET PROFIT(Q) At USD 15.8 MM has Fallen at -44.63%
INTEREST COVERAGE RATIO(Q) Lowest at 309.32

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -30.31%, its profits have risen by 35.3% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.31% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is TreeHouse Foods, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

TreeHouse Foods, Inc.

-28.16%

-0.61

52.69%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.06%

EBIT Growth (5y)

-5.48%

EBIT to Interest (avg)

2.63

Debt to EBITDA (avg)

4.10

Net Debt to Equity (avg)

0.92

Sales to Capital Employed (avg)

1.14

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

6.17%

ROE (avg)

6.40%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.79

EV to EBIT

12.66

EV to EBITDA

7.27

EV to Capital Employed

0.89

EV to Sales

0.78

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

7.01%

ROE (Latest)

7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 236.9 MM

NET PROFIT(HY)

At USD 28.8 MM has Grown at 104.26%

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 13.1 MM has Fallen at -53.46%

NET PROFIT(Q)

At USD 15.8 MM has Fallen at -44.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 309.32

RAW MATERIAL COST(Y)

Grown by 7.89% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 106.9 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 16.75 times

INTEREST(Q)

Highest at USD 23.6 MM

Here's what is working for TreeHouse Foods, Inc.

Operating Cash Flow

Highest at USD 236.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Depreciation

Highest at USD 42.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for TreeHouse Foods, Inc.

Pre-Tax Profit

At USD 13.1 MM has Fallen at -53.46%

over average net sales of the previous four periods of USD 28.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 15.8 MM has Fallen at -44.63%

over average net sales of the previous four periods of USD 28.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 309.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 23.6 MM

in the last five periods and Increased by 7.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 106.9 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 16.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 7.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales