TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $966.57M
• Dividend Yield: N/A
• Average Volume (3M): 630.59K
• Price to Earnings (P/E): 48.9
• Beta (1Y): 0.50
• Revenue Growth: -1.52%
• EPS Growth: N/A
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 65
• Industry: Packaged Foods
• EPS (TTM): 0.17
• Shares Outstanding: 50,500,000
• 10 Day Avg. Volume: 675,076
• 30 Day Avg. Volume: 630,589
• 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: 2.70
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 4.64
• Enterprise Value/Ebitda: 10.38
• 1Y Price Target: $20.83
• Price Target Upside: 8.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: $20.50 ▲(7.16% Upside)

TreeHouse Foods shows some strengths in financial performance and operational improvements as highlighted in the earnings call, but these are offset by technical weaknesses and valuation concerns. The stock's overvaluation and weak momentum are significant risks, while operational improvements provide some positive outlook.

Positive Factors

Financial Performance

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

Sales Growth

TreeHouse's 2Q sales growth exceeded management's guidance.

Sales Guidance

Management raised its full-year sales guidance and maintained (with greater confidence) its EBITDA guidance.

Negative Factors

Guidance

Management guided 3Q below consensus and kept the year unchanged.

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 -6% volume/mix decline and commentary about category weakness weighed on the stock.

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 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 shows a balanced financial profile with stable revenue and strong operational cash flow, but faces challenges with low net profitability and higher leverage. Improvement in profit margins and debt management could enhance financial stability.

Income Statement

TreeHouse Foods demonstrated stable revenue generation with a slight decline in recent years. The gross profit margin for the TTM (Trailing-Twelve-Months) was 16.87%, indicating a moderate level of profitability. The net profit margin was relatively low at 0.62%, reflecting limited net income in comparison to revenue. EBIT and EBITDA margins for TTM were 4.02% and 6.60%, respectively, suggesting operational challenges but some resilience in earnings before interest, taxes, depreciation, and amortization.

Balance Sheet

The company's balance sheet indicates a moderate level of leverage with a debt-to-equity ratio of 1.08. The return on equity (ROE) for TTM stands at 1.35%, suggesting low returns on shareholders' equity. The equity ratio is 37.71%, denoting a reasonable proportion of equity financing. However, the overall financial stability is challenged by substantial debt levels.

Cash Flow

Operating cash flow is strong compared to net income, with an operating cash flow to net income ratio of 11.50 for TTM, indicating efficient cash generation from operations. The free cash flow shows growth, although it remains modest. Free cash flow to net income ratio of 4.58 suggests positive cash retention after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.35B	3.43B	3.30B	2.81B	4.35B
Gross Profit	562.50M	548.40M	576.10M	522.40M	471.60M	802.20M
EBITDA	251.60M	243.60M	300.10M	210.60M	129.30M	325.10M
Net Income	20.60M	26.90M	53.10M	-146.30M	-12.50M	13.80M
Balance Sheet
Total Assets	4.04B	3.98B	4.11B	4.25B	5.21B	5.49B
Cash, Cash Equivalents and Short-Term Investments	17.10M	289.60M	320.30M	43.00M	308.60M	364.60M
Total Debt	1.65B	1.57B	1.60B	1.55B	2.05B	2.39B
Total Liabilities	2.52B	2.43B	2.44B	2.57B	3.36B	3.62B
Stockholders Equity	1.53B	1.55B	1.66B	1.69B	1.85B	1.86B
Cash Flow
Free Cash Flow	94.30M	126.10M	16.50M	-245.50M	209.00M	311.00M
Operating Cash Flow	236.90M	265.80M	157.30M	-150.70M	324.90M	416.70M
Investing Cash Flow	-347.10M	-138.30M	226.70M	412.00M	-16.80M	-332.40M
Financing Cash Flow	22.80M	-159.30M	-107.50M	-522.70M	-362.30M	74.00M

TreeHouse Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 19.13 is below the 20-day moving average (MA) of 20.18, below the 50-day MA of 20.77, and below the 200-day MA of 28.20, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 27.43 is Neutral, 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
SENEA	78 Outperform	$699.28M	17.44	6.77%	―	8.25%	-30.16%
BRFS	76 Outperform	$5.91B	8.28	23.47%	2.46%	3.82%	―
CAG	70 Outperform	$9.04B	7.88	13.27%	7.27%	-3.64%	231.77%
Sector *	63 Neutral	$20.31B	12.53	-7.33%	3.14%	2.92%	-10.02%
THS	61 Neutral	$966.57M	48.89	1.34%	―	-1.52%	―
UTZ	61 Neutral	$1.83B	62.97	2.56%	2.03%	-0.09%	316.21%
KLG	57 Neutral	$2.00B	55.56	10.87%	2.80%	-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.