Treehouse Foods Inc.
Find Ratings ReportsTREEHOUSE FOODS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. TREEHOUSE FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.70 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 remained virtually unchanged only decreasing by 1.31% 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 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 909.1 | 956.7 |
EBITDA ($mil) | 101.7 | 105.7 |
EBIT ($mil) | 65.5 | 69.7 |
Net Income ($mil) | 7.5 | -23.4 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 320.3 | 43.0 |
Total Assets ($mil) | 4106.6 | 4253.9 |
Total Debt ($mil) | 1601.6 | 1592.3 |
Equity ($mil) | 1664.8 | 1687.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 21.31 | 20.83 |
EBITDA Margin | 11.18 | 11.04 |
Operating Margin | 7.2 | 7.29 |
Sales Turnover | 0.84 | 0.78 |
Return on Assets | 1.29 | -3.43 |
Return on Equity | 3.54 | -0.55 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.5 | 0.98 |
Debt/Capital | 0.49 | 0.49 |
Interest Expense | 34.8 | 17.3 |
Interest Coverage | 1.88 | 4.03 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 54.1 | 56.1 |
Div / share | 0.0 | 0.0 |
EPS | 0.12 | 0.7 |
Book value / share | 30.77 | 30.07 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 541856.0 | 394227.0 |
HOLD. The current P/E ratio indicates a significant premium compared to an average of 18.98 for the Food Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.20 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 3.20. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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THS 35.23 | Peers 18.98 | THS 12.72 | Peers 15.41 | |||||||||||||||||||||
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 discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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THS 13.44 | Peers 17.75 | THS 0.32 | Peers 2.43 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. THS is trading at a valuation on par with its peers. |
Discount. 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 discount to its peers. |
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Price/Book |
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Earnings Growth |
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THS 1.20 | Peers 3.20 | THS 717.64 | Peers 16.04 | |||||||||||||||||||||
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. THS is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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THS 0.58 | Peers 1.93 | THS 4.11 | Peers 6.04 | |||||||||||||||||||||
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 subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. THS significantly trails its peers on the basis of sales growth. |
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