TreeHouse Foods Inc.

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THS : NYSE : Consumer Non-Durables
$39.64 up 0.25 | 0.63%
Today's Range: 39.0 - 39.84
Avg. Daily Volume: 922100.0
02/23/18 - 3:59 PM ET

Financial Analysis


TREEHOUSE FOODS INC's gross profit margin for the fourth quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. TREEHOUSE FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.79 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 9.58% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)1699.91776.75
EBITDA ($mil)164.2201.47
EBIT ($mil)89.8125.53
Net Income ($mil)-309.0-281.82


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)146.975.43
Total Assets ($mil)5779.36545.82
Total Debt ($mil)2545.82791.18
Equity ($mil)2263.32503.32


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin19.9722.56
EBITDA Margin9.6511.33
Operating Margin5.287.07
Sales Turnover1.090.94
Return on Assets-4.95-3.49
Return on Equity-12.64-9.13
Debt Q4 FY17 Q4 FY16
Current Ratio2.482.25
Debt/Capital0.530.53
Interest Expense0.021.3
Interest Coverage0.05.89


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)56.556.76
Div / share0.00.0
EPS-5.4-4.96
Book value / share40.0644.1
Institutional Own % n/a n/a
Avg Daily Volume911375.01040029.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.94 indicates a significant discount versus the S&P 500 average of 3.26 and a significant discount versus the industry average of 4.38. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, TREEHOUSE FOODS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
THS NM Peers 23.60   THS 4.19 Peers 21.51

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

THS's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

THS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
THS 12.45 Peers 18.89   THS NA Peers 1.11

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

THS is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
THS 0.94 Peers 4.38   THS -24.62 Peers 53.25

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

THS is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, THS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
THS 0.34 Peers 2.07   THS 1.88 Peers 6.74

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

THS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

THS significantly trails its peers on the basis of sales growth

 

 

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