TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $1.21B
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -0.69%
• EPS Growth: -910.85%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.43
• Shares Outstanding: 50,500,000
• 10 Day Avg. Volume: 771,348
• 30 Day Avg. Volume: 1,314,002
• PEG Ratio: -1.51
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 14.54
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 4.47
• Enterprise Value/Ebitda: 2.03K
• 1Y Price Target: $22.60
• Price Target Upside: 24.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 1.61
• Revenue Forecast (FY): $3.37B

• Rating: 61 Neutral
• Price Target: $25.00 ▲(37.36% Upside)

TreeHouse Foods' overall score is driven by a mix of positive technical indicators and the strategic acquisition announcement, which are offset by financial challenges and a negative valuation. The acquisition by Investindustrial is a key positive factor, providing a potential catalyst for future growth.

Positive Factors

Strategic Acquisition

The acquisition by Investindustrial is expected to enhance TreeHouse Foods' strategic position and drive long-term growth, providing resources and support for expansion in private brands.

Operational Improvements

Operational improvements and supply chain cost savings indicate effective management strategies, which can lead to sustained margin improvements and profitability over time.

Supply Chain Savings Commitment

The commitment to significant supply chain savings reflects a proactive approach to cost management, which can enhance long-term financial health and competitive positioning.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as indicated by negative margins, suggest difficulties in cost management and operational efficiency, impacting long-term financial stability.

Rising Debt Levels

Increased reliance on debt can strain cash flow and limit financial flexibility, posing risks to the company's ability to invest in growth and manage economic downturns.

Volume Decline

Expected volume declines reflect ongoing challenges in market demand and competitive pressures, which could hinder revenue growth and market share expansion.

TreeHouse Foods Business Overview & Revenue Model

Company Description

TreeHouse Foods, Inc. manufactures and distributes private label foods and beverages in the United States and internationally. It operates through two segments, Meal Preparation, and Snacking & Beverages. The Meal Preparation segment provides aseptic cheese and pudding products; baking and mix powders; hot cereals; jams, preserves, and jellies; liquid and powdered non-dairy creamers; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pastas; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; refrigerated dough; single serve hot beverages; skillet dinners; and table and flavored syrups. The Snacking & Beverages segment offers bars, broths, candies, cookies, crackers, in-store bakery products, pita chips, powdered drinks, pretzels, ready-to-drink coffee, retail griddle waffles, pancakes, French toasts, specialty teas, and sweeteners. The company sells its products through various distribution channels, including retailers, foodservice distributors, and co-manufacturers, as well as industrial and export, which includes food manufacturers and repackagers of foodservice products. TreeHouse Foods, Inc. was founded in 1862 and is based in Oak Brook, Illinois.

How the Company Makes Money

TreeHouse Foods generates revenue primarily through the sale of its private label and branded food products. The company partners with major retailers and food service operators to provide a wide range of products, which allows it to capture market share in various food categories. Key revenue streams include sales from grocery items, snack foods, and meal solutions, with an emphasis on private label offerings that provide cost-effective options for consumers. Additionally, TreeHouse Foods benefits from economies of scale in production and distribution, enabling them to maintain competitive pricing while maximizing profitability. Significant partnerships with large grocery chains and food service providers further enhance the company's revenue potential by ensuring broad distribution and brand visibility.

TreeHouse Foods Financial Statement Overview

Summary

TreeHouse Foods shows mixed financial performance with modest revenue growth and cash flow improvements. However, profitability is a concern with negative margins, and the balance sheet indicates high leverage. The company needs to enhance operational efficiency and reduce debt to strengthen its financial position.

Income Statement

TreeHouse Foods shows a mixed performance in its income statement. The TTM data reveals a gross profit margin of 17.66%, which is reasonable but slightly below the industry average. The company is struggling with profitability, as indicated by a negative net profit margin of -7.25% and a negative EBIT margin. Revenue growth is modest at 3.6% TTM, showing some recovery from previous declines. However, the negative EBITDA margin highlights operational challenges.

Balance Sheet

The balance sheet presents a moderate risk profile with a debt-to-equity ratio of 1.29 TTM, indicating a relatively high leverage. The return on equity is negative, reflecting recent losses. However, the equity ratio is stable, suggesting a solid asset base. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows some positive trends, with a free cash flow growth rate of 6.89% TTM. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio is moderate, suggesting room for improvement in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.34B	3.35B	3.43B	3.30B	2.81B	4.35B
Gross Profit	589.20M	548.40M	576.10M	522.40M	471.60M	802.20M
EBITDA	1.30M	243.60M	300.10M	210.60M	129.30M	325.10M
Net Income	-241.80M	26.90M	53.10M	-146.30M	-12.50M	13.80M
Balance Sheet
Total Assets	3.78B	3.98B	4.11B	4.25B	5.21B	5.49B
Cash, Cash Equivalents and Short-Term Investments	21.00M	289.60M	320.30M	43.00M	304.50M	364.60M
Total Debt	1.63B	1.57B	1.60B	1.59B	2.06B	2.39B
Total Liabilities	2.51B	2.43B	2.44B	2.57B	3.36B	3.62B
Stockholders Equity	1.26B	1.55B	1.66B	1.69B	1.85B	1.86B
Cash Flow
Free Cash Flow	100.80M	126.10M	16.50M	-236.50M	253.30M	311.00M
Operating Cash Flow	233.70M	265.80M	157.30M	-150.70M	324.90M	416.70M
Investing Cash Flow	-329.50M	-138.30M	226.70M	412.00M	-16.80M	-332.40M
Financing Cash Flow	13.80M	-159.30M	-107.50M	-522.70M	-362.30M	74.00M

TreeHouse Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THS, the sentiment is Positive. The current price of 18.2 is below the 20-day moving average (MA) of 23.72, below the 50-day MA of 21.47, and below the 200-day MA of 21.68, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THS.

TreeHouse Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	70 Outperform	$760.54M	12.94	9.41%	―	8.33%	47.71%
JJSF	69 Neutral	$1.81B	27.94	6.82%	3.33%	0.54%	-24.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
THS	61 Neutral	$1.21B	―	-17.18%	―	-0.69%	-910.85%
BGS	51 Neutral	$382.29M	-1.49	-40.86%	16.17%	-6.04%	-844.18%
STKL	51 Neutral	$458.87M	-752.94	2.23%	―	11.31%	99.83%
HAIN	38 Underperform	$101.44M	-0.20	-75.51%	―	-10.13%	-532.32%

TreeHouse Foods Corporate Events

TreeHouse Foods Announces Acquisition by Investindustrial

On November 10, 2025, TreeHouse Foods, Inc. announced a definitive agreement to be acquired by Investindustrial for a total enterprise value of $2.9 billion. Shareholders will receive $22.50 per share in cash and one contingent value right per share, representing a 38% premium to the closing share price on September 26, 2025. The acquisition is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals. This move is seen as a strategic step for TreeHouse Foods to enhance its position as a private brand leader in the snacking and beverage industry, with Investindustrial’s support expected to drive long-term growth and success.

TreeHouse Foods to Be Acquired by Investindustrial

On November 10, 2025, TreeHouse Foods announced a definitive agreement to be acquired by Investindustrial for a total enterprise value of $2.9 billion. TreeHouse shareholders will receive $22.50 per share in cash and a Contingent Value Right per share, representing a 38% premium to the company’s closing share price on September 26, 2025. The acquisition, expected to close in the first quarter of 2026, will result in TreeHouse becoming a private company, enhancing its focus on long-term growth opportunities in private brands and its operational agility. This move is seen as a strategic step to maximize shareholder value and position TreeHouse Foods for continued success.