TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• 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: 2,494,929
• 30 Day Avg. Volume: 1,244,513
• 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: 2.21
• 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): 1.59
• Revenue Forecast (FY): $3.37B

• Rating: 62 Neutral
• Price Target: $25.00 ▲(37.36% Upside)

TreeHouse Foods' overall stock score is driven by a mixed financial performance with high leverage and negative profitability. Technical indicators are strong, showing bullish momentum, but valuation concerns persist due to negative earnings. The earnings call provides a balanced view with strategic initiatives and ongoing challenges.

Positive Factors

Operational Improvements

TreeHouse Foods' focus on operational improvements and supply chain cost savings enhances efficiency and supports long-term profitability.

Strategic Acquisitions

Strategic acquisitions like Harris Tea bolster TreeHouse Foods' market position and diversify its product offerings, driving sustainable growth.

Supply Chain Savings Commitment

TreeHouse Foods' commitment to substantial supply chain savings indicates a strong focus on cost efficiency, enhancing long-term financial health.

Negative Factors

Volume and Mix Decline

Ongoing volume and mix declines reflect challenges in demand and operational disruptions, potentially impacting revenue growth and market share.

Commodity Inflation

Rising commodity costs pose a risk to TreeHouse Foods' margins, necessitating effective pricing strategies to maintain profitability.

Plant Closures

Plant closures indicate restructuring efforts but may lead to short-term operational disruptions and costs, affecting production capacity.

TreeHouse Foods Business Overview & Revenue Model

Company Description

TreeHouse Foods, Inc. is a leading manufacturer and distributor of private label and branded food products in North America. The company operates in various sectors, including snacks, beverages, meals, and condiments, providing a diverse range of products such as frozen and shelf-stable meals, sauces, and seasonings. With a focus on innovation and customer partnerships, TreeHouse Foods caters to both retail and food service channels, positioning itself as a key player in the food industry.

How the Company Makes Money

TreeHouse Foods generates revenue primarily through the sale of its private label and branded food products to retailers, wholesalers, and food service operators. The company's revenue model is based on producing high-quality food items at competitive prices, allowing it to serve a broad customer base. Key revenue streams include sales from its various product categories, such as snacks, meals, and beverages. Additionally, TreeHouse Foods benefits from long-term contracts and partnerships with major retailers, which provide consistent demand for its products. The company's commitment to innovation and responding to consumer trends also plays a significant role in driving sales and expanding its market reach.

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: Negative
• RSI: Negative
• 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 21.16, below the 50-day MA of 19.76, and below the 200-day MA of 22.29, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 71.45 is Negative, neither overbought nor oversold. The STOCH value of 60.67 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	$835.21M	14.22	9.41%	―	8.33%	47.71%
JJSF	67 Neutral	$1.77B	27.03	6.82%	3.46%	0.54%	-24.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
THS	62 Neutral	$1.19B	―	-17.18%	―	-0.69%	-910.85%
STKL	51 Neutral	$638.71M	―	2.23%	―	11.31%	99.83%
BGS	44 Neutral	$313.61M	―	-40.86%	17.76%	-6.04%	-844.18%
HAIN	41 Neutral	$104.15M	―	-75.51%	―	-10.13%	-532.32%

TreeHouse Foods Corporate Events

TreeHouse Foods Reports Q3 2025 Results Amid Acquisition

TreeHouse Foods, Inc. is a leading private brands snacking and beverage manufacturer in North America, known for its focus on customer engagement and operational efficiencies to drive growth in its sector. In its third quarter of 2025, TreeHouse Foods reported net sales of $840.3 million, a slight increase from the previous year, but faced a significant net loss of $265.8 million due to a non-cash goodwill impairment loss of $289.7 million. The company’s adjusted EBITDA stood at $91.6 million, reflecting a decrease from the previous year, primarily influenced by macroeconomic consumption trends and planned margin management actions.

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.

The most recent analyst rating on (THS) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on TreeHouse Foods stock, see the THS Stock Forecast page.