Treehouse Foods Inc

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THS : NYSE : Consumer Goods
$87.6 | %
Today's Range: 85.6 - 87.86
Avg. Daily Volume: 572300.0
04/28/17 - 4:02 PM ET

Financial Analysis


TREEHOUSE FOODS INC's gross profit margin for the fourth 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, representing a decrease to the bottom line. TREEHOUSE FOODS INC has weak liquidity. Currently, the Quick Ratio is 0.73 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 34.96% 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 FY16 Q4 FY15
Net Sales ($mil)1776.75865.41
EBITDA ($mil)201.47117.04
EBIT ($mil)125.5386.9
Net Income ($mil)-281.8237.26


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)75.4343.31
Total Assets ($mil)6545.823702.8
Total Debt ($mil)2791.181236.63
Equity ($mil)2503.321854.86


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin22.5623.13
EBITDA Margin11.3313.52
Operating Margin7.0710.04
Sales Turnover0.940.87
Return on Assets-3.493.1
Return on Equity-9.136.19
Debt Q4 FY16 Q4 FY15
Current Ratio2.253.08
Debt/Capital0.530.4
Interest Expense30.911.2
Interest Coverage4.067.76


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)56.7643.13
Div / share0.00.0
EPS-4.960.85
Book value / share44.143.01
Institutional Own % n/a n/a
Avg Daily Volume567574.0870974.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 1.97 indicates a discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 5.01. 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 33.57   THS 10.31 Peers 17.87

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 18.09 Peers 20.60   THS NA Peers 1.62

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 premium 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 1.97 Peers 5.01   THS -253.61 Peers 1508.88

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 0.80 Peers 2.40   THS 92.89 Peers 8.23

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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