TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: N/A
• Average Volume (3M): 580.30K
• Price to Earnings (P/E): 160.7
• Beta (1Y): 0.44
• Revenue Growth: -3.37%
• EPS Growth: -65.26%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.03
• Shares Outstanding: 50,500,000
• 10 Day Avg. Volume: 546,849
• 30 Day Avg. Volume: 580,297
• PEG Ratio: -0.34
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.72
• Enterprise Value/Market Cap: 3.88
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 4.85
• 1Y Price Target: $23.71
• Price Target Upside: 13.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $24.00 ▲(15.38%Upside)

TreeHouse Foods scores 54, reflecting a challenging environment. Financial performance indicates operational improvements but struggles with profitability and leverage. Technical analysis highlights a bearish trend, while valuation remains unattractive due to a high P/E ratio. Despite positive operational strides, earnings call challenges such as declining sales moderate the outlook. Focus on cost management and revenue growth is crucial for future performance.

Positive Factors

Financial Performance

EBITDA grew by 25% as a result of product mix, pricing, and productivity.

Operational Improvements

TreeHouse announced a plan to improve productivity, reduce costs, and in turn drive profit and cash flow.

Valuation

Valuation considered attractive with enterprise value at 7.3 times.

Negative Factors

Market Environment

Current environment may be the leanest for some time looking forward due to broth recall impacts and weak industry volumes.

Organic Growth

Organic growth declined by -7.5%, influenced by a significant drop in volume/mix and product recalls, only partially offset by pricing.

Volume Decline

The volume/mix decline of -8.3% was highly disappointing and perplexing for investors expecting private label food suppliers to capitalize on strong consumer demand.

TreeHouse Foods Business Overview & Revenue Model

Company Description

TreeHouse Foods, Inc. is a leading manufacturer and distributor of private label packaged foods and beverages in North America. The company operates across various sectors, including snacks, beverages, and meal preparation products, catering primarily to retail grocery, foodservice, and industrial clients. TreeHouse Foods is dedicated to delivering quality and value through its extensive portfolio of products, which includes ready-to-eat cereals, baked goods, condiments, and more, all under private label brands.

How the Company Makes Money

TreeHouse Foods makes money primarily by producing and selling private label packaged foods and beverages to a diverse customer base, including grocery retailers, foodservice operators, and industrial manufacturers. The company's revenue streams are driven by its extensive product portfolio, which spans various categories such as snacks, condiments, meals, and beverages. By focusing on private label products, TreeHouse Foods provides value-driven solutions for its clients who seek to offer competitive pricing and unique branding in their own retail environments. The company's earnings are also influenced by strategic partnerships with major retail chains and its ability to adapt to consumer trends, such as the growing demand for organic and health-conscious products. Additionally, TreeHouse Foods benefits from economies of scale and efficient supply chain operations, which help maintain competitive pricing and profitability.

TreeHouse Foods Financial Statement Overview

Summary

TreeHouse Foods presents a mixed financial picture. Improved operational efficiency is evident from the better EBIT and EBITDA margins, but the company struggles with low net profitability. The balance sheet is stable yet leveraged, with adequate equity ratios. Strong cash flows provide liquidity and financial flexibility, although low net income poses a risk. Enhancing profitability and reducing leverage should be priorities.

Income Statement

TreeHouse Foods shows a mixed performance in its income statement. The gross profit margin for TTM (Trailing-Twelve-Months) is approximately 16.6%, which indicates a reasonable level of efficiency in managing production costs. However, the net profit margin is quite low at around 0.2%, suggesting challenges in controlling other expenses or generating net income. Revenue has slightly declined from $3,354 million in 2024 to $3,325 million in TTM 2025, reflecting a challenging market environment. Although there was an improvement in EBIT and EBITDA margins, indicating better operational efficiency, the overall income statement performance is constrained by low profitability.

Balance Sheet

The balance sheet of TreeHouse Foods shows moderate stability. The debt-to-equity ratio stands at approximately 1.04 in TTM 2025, indicating a leveraged position but within acceptable industry norms. The return on equity (ROE) is marginal at 0.45%, reflecting low profitability relative to shareholder investment. The equity ratio is around 38.7%, showing a balanced approach to financing through equity. Overall, the company maintains a stable but leveraged financial structure, with room for improvement in profitability.

Cash Flow

Cash flow analysis for TreeHouse Foods reveals some positive aspects. The operating cash flow to net income ratio is significantly high, indicating strong cash generation relative to net income. Free cash flow has shown marginal growth from $126 million in 2024 to $127 million in TTM 2025, demonstrating effective capital expenditure control. However, the free cash flow to net income ratio is extremely high due to low net income, which could be a potential risk if net income does not improve. The overall cash flow position is stable, providing the company with some financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.24B	3.35B	3.43B	3.30B	2.81B	4.35B
	Gross Profit
641.85M	548.40M	576.10M	522.40M	471.60M	802.20M
	EBIT
238.76M	103.10M	146.90M	-12.60M	-44.20M	149.10M
	EBITDA
235.10M	243.60M	300.10M	210.60M	129.30M	325.10M
	Net Income Common Stockholders
111.57M	26.90M	53.10M	-146.30M	-12.50M	13.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
202.30M	289.60M	320.30M	43.00M	308.60M	364.60M
	Total Assets
5.14B	3.98B	4.11B	4.25B	5.21B	5.49B
	Total Debt
2.27B	1.57B	1.60B	1.55B	2.05B	2.39B
	Net Debt
2.06B	1.28B	1.28B	1.51B	1.74B	2.03B
	Total Liabilities
3.31B	2.43B	2.44B	2.57B	3.36B	3.62B
	Stockholders Equity
1.83B	1.55B	1.66B	1.69B	1.85B	1.86B
Cash Flow		Free Cash Flow
211.35M	126.10M	16.50M	-245.50M	209.00M	311.00M
	Operating Cash Flow
304.19M	265.80M	157.30M	-150.70M	324.90M	416.70M
	Investing Cash Flow
-83.53M	-138.30M	226.70M	412.00M	-16.80M	-332.40M
	Financing Cash Flow
-216.69M	-159.30M	-107.50M	-522.70M	-362.30M	74.00M

TreeHouse Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THS, the sentiment is Negative. The current price of 20.8 is below the 20-day moving average (MA) of 21.79, below the 50-day MA of 22.33, and below the 200-day MA of 31.70, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THS.

TreeHouse Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRFS	78 Outperform	$6.33B	8.95	23.47%	2.43%	3.82%	―
SENEA	71 Outperform	$617.29M	15.32	6.77%	―	4.01%	22.46%
CAG	67 Neutral	$10.26B	31.46	3.67%	6.51%	-3.15%	-65.38%
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
UTZ	61 Neutral	$1.86B	41.08	3.93%	1.86%	-1.29%	―
THS	54 Neutral	$1.03B	160.74	0.43%	―	-3.37%	-65.26%
KLG	52 Neutral	$1.35B	24.26	17.70%	4.22%	-3.13%	-51.41%

TreeHouse Foods Corporate Events

TreeHouse Foods Announces Major Restructuring Plan

On April 10, 2025, TreeHouse Foods announced a restructuring plan that includes eliminating the role of Executive Vice President, Business President, and Chief Commercial Officer, held by Scott Tassani, who will remain until May 30, 2025. The company aims to enhance operational efficiency, cost savings, and profitability, impacting approximately 150 roles, while reaffirming its 2025 financial guidance with anticipated cost savings and improved competitiveness.