TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 737.36K
• Price to Earnings (P/E): 41.1
• Beta (1Y): 0.37
• Revenue Growth: -4.59%
• EPS Growth: -42.81%
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 89
• Industry: Packaged Foods
• EPS (TTM): 0.54
• Shares Outstanding: 50,203,510
• 10 Day Avg. Volume: 778,069
• 30 Day Avg. Volume: 737,363
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.74
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $26.50
• Price Target Upside: 16.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

TreeHouse Foods faces challenges with profitability and valuation, as indicated by its financial performance and high P/E ratio. Technical indicators suggest a bearish trend, though oversold conditions may present a buying opportunity. Despite strategic acquisitions and cost savings, operational challenges and macroeconomic pressures continue to weigh on the stock.

Positive Factors

Market Share and Business Wins

Private label volume modestly positive, with TreeHouse Foods outperforming in vol/mix, benefiting from broth supply restoration and new business wins.

Productivity and Cost Management

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

Negative Factors

Industry Challenges

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

Revenue and EBITDA Guidance

Guidance fell short for Q1 revenue and adjusted EBITDA, reflecting weak macroeconomics, recall impacts, and lagging inflation pricing.

Valuation and Price Target

Lower valuations across the packaged food sector have resulted in a price target reduction to $27/share.

TreeHouse Foods Business Overview & Revenue Model

Company Description

TreeHouse Foods, Inc. (THS) is a leading manufacturer and distributor of private label packaged foods and beverages in North America. The company specializes in producing a wide range of products including snacks, beverages, meal solutions, and condiments, serving retail grocery, foodservice, and industrial customers. TreeHouse Foods is known for its commitment to providing high-quality, affordable private label products to its clients while focusing on operational excellence and customer satisfaction.

How the Company Makes Money

TreeHouse Foods generates revenue primarily through the manufacturing and sale of private label packaged foods and beverages to retail grocery chains, foodservice distributors, and industrial customers. The company's key revenue streams include sales of snacks, beverages, and meal solutions, which are distributed under both private label and regional brands. TreeHouse Foods benefits from economies of scale due to its large production capacity and extensive distribution network, allowing it to offer competitive pricing. Additionally, the company may engage in strategic partnerships with retailers to expand its market reach and enhance product offerings, further contributing to its earnings.

TreeHouse Foods Financial Statement Overview

Summary

TreeHouse Foods is navigating through a period of revenue volatility with signs of operational improvements. Balance sheet metrics indicate better leverage management, but profitability remains a concern. Cash flow performance shows recovery potential, but sustainability requires attention.

Income Statement

TreeHouse Foods has experienced fluctuating revenue with a decline from 2022 but a slight improvement in gross profit margins. The net profit margin is low due to increased operating expenses, impacting overall profitability. EBIT and EBITDA margins show some recovery, indicating potential operational improvements.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, reflecting better leverage management. However, the return on equity remains modest, suggesting limited profitability relative to equity. The equity ratio indicates a stable but slightly weakened financial structure.

Cash Flow

Cash flow from operations shows a recovery trend, but free cash flow remains inconsistent due to high capital expenditures. The operating cash flow to net income ratio suggests operating efficiency, but free cash flow to net income is less stable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.35B	3.43B	3.45B	4.33B	4.35B
	Gross Profit
548.40M	576.10M	514.90M	698.10M	802.20M
	EBIT
103.10M	146.90M	68.30M	72.20M	149.10M
	EBITDA
103.10M	300.10M	213.70M	93.90M	306.70M
	Net Income Common Stockholders
26.90M	53.10M	-16.10M	-27.10M	49.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
289.60M	320.30M	43.00M	308.60M	364.60M
	Total Assets
3.98B	4.11B	4.25B	5.21B	5.49B
	Total Debt
1.53B	1.60B	1.55B	2.05B	2.39B
	Net Debt
1.24B	1.28B	1.51B	1.74B	2.03B
	Total Liabilities
2.43B	2.44B	2.57B	3.36B	3.62B
	Stockholders Equity
1.55B	1.66B	1.69B	1.85B	1.86B
Cash Flow		Free Cash Flow
126.10M	16.50M	-245.50M	209.00M	311.00M
	Operating Cash Flow
265.80M	157.30M	-150.70M	324.90M	416.70M
	Investing Cash Flow
-138.30M	226.70M	412.00M	-16.80M	-332.40M
	Financing Cash Flow
-159.30M	-107.50M	-522.70M	-362.30M	74.00M

TreeHouse Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 22.83 is below the 20-day moving average (MA) of 23.58, below the 50-day MA of 27.07, and below the 200-day MA of 34.80, indicating a bearish trend. The MACD of -1.44 indicates Negative momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 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
BRFS	77 Outperform	$6.70B	11.01	21.60%	2.20%	5.85%	―
SENEA	71 Outperform	$593.97M	15.67	6.35%	―	4.01%	22.46%
CAG	68 Neutral	$12.50B	38.32	3.67%	5.72%	-3.15%	-65.38%
Sector *	64 Neutral	$9.24B	14.61	4.31%	185.59%	3.94%	5.78%
UTZ	62 Neutral	$1.87B	70.59	2.33%	1.78%	-2.01%	―
KLG	60 Neutral	$1.52B	21.38	23.34%	3.62%	-1.99%	-33.52%
THS	55 Neutral	$1.12B	41.11	1.67%	―	-4.59%	-42.81%

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.

Spark’s Take on THS Stock

According to Spark, TipRanks’ AI Analyst, THS is a Neutral.

TreeHouse Foods faces challenges with profitability and bearish technical indicators, contributing to a moderate overall score. The company’s high P/E ratio suggests overvaluation, while the recent acquisition in the tea sector provides a potential growth avenue. Operational improvements and cost savings are positive, but macroeconomic pressures and internal challenges remain significant.

To see Spark’s full report on THS stock, click here.