Treehouse Foods Inc

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THS : NYSE : Consumer Goods
$86.63 up 1.11 | 1.30%
Today's Range: 85.06 - 86.65
Avg. Daily Volume: 808,600
09/28/16 - 4:02 PM ET

Financial Analysis


TREEHOUSE FOODS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. TREEHOUSE FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 52.30% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)1551.33759.21
EBITDA ($mil)148.2486.2
EBIT ($mil)75.5555.16
Net Income ($mil)15.6531.36


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)64.1353.57
Total Assets ($mil)6898.63817.09
Total Debt ($mil)2909.431345.77
Equity ($mil)2748.781804.76


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin21.0221.97
EBITDA Margin9.5511.35
Operating Margin4.877.27
Sales Turnover0.650.85
Return on Assets1.132.69
Return on Equity2.835.7
Debt Q2 FY16 Q2 FY15
Current Ratio2.293.04
Debt/Capital0.510.43
Interest Expense31.5411.27
Interest Coverage2.44.89


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)56.743.06
Div / share0.00.0
EPS0.270.72
Book value / share48.4841.92
Institutional Own % n/a n/a
Avg Daily Volume896365.0644393.0

Valuation


BUY. TREEHOUSE FOODS INC's P/E ratio indicates a significant premium compared to an average of 25.43 for the Food Products industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.81 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 6.14. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
THS 51.35 Peers 25.43   THS 11.96 Peers 18.39

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

THS is trading at a significant premium to its peers.

 

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 21.13 Peers 21.39   THS 3.02 Peers 1.18

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

THS is trading at a significant premium to its peers.

 

Premium. 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.

THS trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
THS 1.81 Peers 6.14   THS -28.16 Peers 78.82

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 1.11 Peers 1.93   THS 38.37 Peers 0.03

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

THS has a sales growth rate that significantly exceeds its peers.

 

 

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