TreeHouse Foods (THS) AI Stock Analysis

• Market Cap: $900.92M
• Dividend Yield: N/A
• Average Volume (3M): 937.55K
• Price to Earnings (P/E): 45.6
• Beta (1Y): 0.59
• Revenue Growth: -1.52%
• EPS Growth: N/A
• Country: US
• Employees: 7,400
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.17
• Shares Outstanding: 50,500,000
• 10 Day Avg. Volume: 505,415
• 30 Day Avg. Volume: 937,553
• 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: 2.90
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 4.64
• Enterprise Value/Ebitda: 10.38
• 1Y Price Target: $20.50
• Price Target Upside: 11.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $20.50 ▲(11.47% Upside)

TreeHouse Foods' overall stock score reflects a mix of stable financial performance and positive earnings call outcomes, tempered by valuation concerns and technical indicators suggesting a neutral trend. The company's strategic initiatives and operational improvements are promising, but ongoing challenges in volume and cost pressures remain significant.

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. 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 products to retailers and foodservice operators. The company's revenue model is centered on producing and marketing a diverse range of food items that cater to consumer demand for affordable alternatives to branded products. Key revenue streams include sales from their various product lines, which are often sold under the retailer's brand name, as well as contract manufacturing services for other companies. Significant partnerships with major grocery chains and foodservice providers enhance their market reach and contribute to steady sales. Additionally, TreeHouse Foods focuses on cost efficiencies in production and supply chain management to maintain profitability.

TreeHouse Foods Financial Statement Overview

Summary

TreeHouse Foods shows a balanced financial profile with stable revenue and operational cash flow, albeit with low net profitability and higher leverage. Continued focus on improving profit margins and managing debt could enhance financial stability and growth prospects.

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	304.50M	364.60M
Total Debt	1.65B	1.57B	1.60B	1.59B	2.06B	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: 18.39
• 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 18.39 is below the 20-day moving average (MA) of 19.48, below the 50-day MA of 18.59, and below the 200-day MA of 23.31, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 38.33 is Neutral, neither overbought nor oversold. The STOCH value of 8.23 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
SENEA	―	$750.16M	17.47	7.04%	―	7.30%	-13.73%
JJSF	―	$1.69B	20.49	8.79%	3.57%	0.50%	-4.46%
THS	―	$900.92M	45.59	1.34%	―	-1.52%	―
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STKL	―	$639.92M	-88.63	-1.34%	―	10.90%	96.02%
BGS	―	$321.62M	-1.42	-35.36%	17.76%	-6.91%	-83.51%
HAIN	―	$116.48M	-0.22	-74.88%	―	-10.17%	-609.02%

TreeHouse Foods Corporate Events

TreeHouse Foods’ Earnings Call: Triumphs and Challenges

TreeHouse Foods’ recent earnings call painted a picture of both triumphs and challenges. The company exceeded its guidance for net sales and EBITDA, showcasing strong operational efficiency and robust performance in its coffee and tea segments. However, these positive outcomes were tempered by volume declines, PNOC drag, and the repercussions of the Griddle recall. The decision to close plants further underscores TreeHouse Foods’ ongoing efforts to optimize its cost structure.

TreeHouse Foods Exceeds Q2 2025 Financial Expectations

TreeHouse Foods, Inc. is a prominent North American manufacturer specializing in private brand snacks and beverages, known for its customer-centric approach and operational efficiency in the food industry. In its second quarter of 2025, TreeHouse Foods reported adjusted net sales of $801.4 million and an adjusted EBITDA of $73.3 million, both surpassing the company’s guidance range. Despite a net loss of $2.9 million, the company showed resilience with a 1.2% increase in net sales compared to the previous year, driven by strategic acquisitions and pricing adjustments to counteract commodity inflation. Key financial highlights include a gross profit margin improvement to 17.4%, a reduction in operating expenses by $20.4 million, and a slight increase in adjusted EBITDA from the previous year. The company attributes these results to supply chain savings and the successful integration of the Harris Tea acquisition. Looking forward, TreeHouse Foods maintains its 2025 guidance for adjusted EBITDA and free cash flow, with a focus on margin management and strategic pricing to navigate the current economic landscape.