THS Investment Analysis Report & Stock Research, Treehouse Foods, Inc.

Treehouse Foods, Incorporated (THS)

THS Stock Report

2-Year Price History

View Larger THS Chart
NYSE:THS
$38.80
(2/9 2:00PM)
+0.5%
Open$38.96 Mkt Cap$1.2 Billion
High$39.18 52Wk High$41.25
Low$38.33 52Wk Low$25.25
Volume113,018 Avg Vol 10D163,600

Ockham's Rating/Recommendation Summary

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THS Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 6 years. For, THS the high and low end of the Price to Sales per share ratios are 0.95x and 0.57x respectively.

Notice that THS's current Price to Sales per share ratio is 0.82x, which is slightly above its historical average. This level of Price to Sales gives us a fairly neutral position on the shares. We would like to see a drop in the Price to Sales ratio of 7% given current sales figures before we would become more positive on a Price to Sales basis. Such a drop would put Price to Sales per share in line with THS's weighted historical average.

THS Cash Earnings

Looking at THS specifically in their Cash Earnings capabilities, Ockham views THS as below its historical average multiple of Cash Earnings. Looking at the last 6 years we can get a good understanding of what investors have grown to expect from THS. For example, THS's Cash Earnings ratio per share has fluctuated between 9.29 and 15.63 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where THS is with respect to prior business periods.

At its current price of $38.60, the Price to Cash Earnings ratio of 11.06 per share for THS is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at THS must continue on its generation to improve our overall outlook for the stock.

THS Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. Although they may currently pay a dividend, our data source has no historical record of it for THS. Since we cannot apply our historical trend analysis to dividends for THS we have a neutral score for the dividend portion of our analysis.

Peer Comparison

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Treehouse Foods, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including THS) 16.52 5.13 » 25.04 1.37 0.58 » 2.31 9.96% 12.52%
*10 year range does not include current year values
Seaboard Corp. SEB $1.5 Billion $1,245 7.87 1.52 » 12.87 0.41 0.12 » 1.04 16.59% 19.32%
Cosan, Ltd. CZZ $1.4 Billion $8.23 27.86 5.15 » 33.11 0.99 0.19 » 2.46 n/a 12.66%
Fresh Del Monte Produce, Inc. FDP $1.3 Billion $19.75 5.67 1.52 » 10.39 0.37 0.12 » 0.79 7.26% 9.15%
Treehouse Foods, Inc. THS $1.2 Billion $38.61 11.06 6.96 » 36.40 0.82 0.40 » 1.47 n/a 5.33%
Sanderson Farms, Inc. SAFM $1.0 Billion $48.56 7.44 1.71 » 32.39 0.55 0.13 » 1.05 11.20% 11.77%
Tootsie Roll Industries, Inc. TR $927.1 Million $25.88 33.77 15.74 » 36.47 4.53 2.32 » 6.23 4.78% 9.70%
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Mad Money

THS's Dividends Mentioned by Mad Money

For income investors, dividend news is obviously important. THS's dividends were discussed recently on Mad Money.

We noticed recently that in comparison to all other stocks we analyze in the news; THS has received less coverage from the financial media in business television and blogs. Treehouse Foods, Incorporated receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.

“… TREEHOUSE FOODS our faip favorite private label play. We liked it at 28 and it's at 38 and we still like it. We'll listen to. Fleur. …”

Mad Money

Discussion Turns to THS and Merger Talk on Mad Money

While we do not know the details relating to THS and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.

Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Treehouse Foods, Incorporated will perform just about the same as the index. We considered THS as Undervalued as of our latest report at $33.56. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. That being said, the recent price appriciation does make it slightly less attractive to value investors as they may have missed the boat. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, THS has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 12.34% today.

“… takes your calls rapid-fire in an all new lightning round. Will TREEHOUSE FOODS most recent acquisition create value for the …”

Mad Money

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Mad Money

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Of "off the charts." we've got dueling chartists tonight, two technicians who are squaring off on whether we can turn jars of pickles into jars of cash by buying private-label pickle-maker TREEHOUSE FOODS, ths, for all of you home gamers. It also makes baby foods, soups, jams, jellies and salad dressing, making for one unappetizing sandwich, even as I think it may be a delicious stock. We're huge sponsors of treehouse which has had a big run and is one of the few stocks to go higher during yesterday's brutal sell-off that shaved 186 points off the dow. That piqued our interest, because when we see stocks that can buck the gravity of a down 186-point day, we know we might have a rocket on our hands.

“… by foods, soups, jams, jellies and salad dressing, making for one unappetizing sandwich, even as I think it may be a delicious stock. We're huge sponsors of treehouse which has had a big run and is one of the few stocks to go higher during yesterday's brutal sell-off that shaved 186 points off the dow. That piqued our interest, because when we see stocks that can buck the gravity of a down 186-point day, we know we might have a rocket on our hands. …”

Money For Breakfast

Treehouse Foods, Incorporated (THS) Discussed on Fox Business's Money For Breakfast

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Will have a minimal effect on jenna: are you exposed to the emerging markets? Are you looking to expand overseas? >> our core business will stay in north america. Thank you very much. Sam reed, TREEHOUSE FOODS. We appreciate speaking with you this morning. Jenna: keep us up-to-date. We will talk again soon. >> I will and thank you for having us on. TREEHOUSE FOODS, the ticker symbol there if I can pull it up for you I believe is ths. Take a look at that stock. The world markets are shooting higher today after the fed said the recession may be levelling off. Sky business joins us for london with the very latest. Good morning, nina. >> good morning to you jenna. Yes, well markets here very much taking their cues from some early signs of recovery in we have a number of these markets up between about 1.3% and 1.5%. Here in london the markets rising also about 1.3%. That's despite the fact that

“… . Jenna: keep us up-to-date. We will talk again soon. >> I will and thank you for having us on. TREEHOUSE FOODS, the ticker symbol there if I can pull it up for you I believe is ths. Take a look at that stock. The world markets are shooting higher today after the fed said the recession may be levelling off. Sky business joins us for london with the very latest. Good morning, nina. >> good morning to you jenna. Yes, well markets here very much taking their cues from some early signs of recovery in we have a number of these markets up between about 1.3% and 1.5%. Here in london the markets rising also about 1.3%. That's despite the fact that …”

Closing Bell

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Closing Bell

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Even when I don't, I don't need to as much anybody, but it's something that stuck now and it's become habit. >> two public companies producing private label foods for grocers are TREEHOUSE FOODS and ralcorp, both have outperformed the market. Safeway private label products are now a billion dollar business and the chain may start selling them in other chains.

“… ate label products are now a billion dollar business and the chain may start selling them in other chains. …”

Cavuto

Treehouse Foods, Incorporated (THS) Discussed on Fox Business's Cavuto

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

By have driven and a couple of 59 I am probably ticking off the owners but I hat them. I cannot stand of the car. They have never been reliable, h@ths the savior and the one whose arms they are being pushed into? Something is not right with >> from our perspective in igan, we just want to keep people working and protect the

“… rspective in igan, we just want to keep people working and protect the …”

Squawk On The Street

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Squawk On The Street

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Simeon property group right behind that, late march,half a billion or more. And there are others. And I just named those top five because ths interestit is interesting to see erin and mark asked the question of donald trump, of course, about the commercial real estate hey, it's terrible, but, yeah, but, but it is terrible.

“… l real estate hey, it's terrible, but, yeah, but, but it is terrible. …”

Squawk Box

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Squawk Box

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Say whatever you like. >> i'm not going to. One toilet paper square. >> at a time. She does. That's her answer. Take a look at future ths on a monday, we're going to start earnings season really in earnest tomorrow as we start getting the big banks. I guess we're not going to look at futures.

“… ss we're not going to look at futures. …”

Squawk Box

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Squawk Box

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Industry in the united states of america producing cars and selling them around the world. >> can that be done out of bankruptcy, or bankruptcy the only elixir that fix ths >> I know that people would love to avoid bankruptcy. The bankruptcy laws are designed to give the company space to work out all their problems while they continue to operate

“… gned to give the company space to work out all their problems while they continue to operate …”

10:43A, Mar. 18,2009 THS $28.91 Treehouse Foods, Inc.
Squawk On The Street

Treehouse Foods, Incorporated (THS) Discussed on CNBC's Squawk On The Street

Treehouse Foods, Incorporated is in the news. Find out how this impacts THS trading on Ockham Research.

Be flat. Reed. We appreciate you taking the mark, I have a little piece of trivia for you about treehouse >> who was on the board of TREEHOUSE FOODS, a current, a first lady. Could be current or former. >> lawyer la bush.

“… Be flat. Reed. We appreciate you taking the mark, I have a little piece of trivia for you about treehouse >> who was on the board of TREEHOUSE FOODS, a current, a first lady. Could be current or former. >> lawyer la bush. …”

View All Treehouse Foods, Inc. Stock News

Key Fundamentals

THS - Treehouse Foods, Incorporated Fundamentals
Price (2/9 2:00PM) $38.80
Volume (2/9 2:00PM) 113,018
Last Close Price $38.61
10 Day Average Volume 163,600
13 Week Price Range $33.00 - $41.25
52 Week Price Range $25.25 - $41.25
LTM Revenue $1.5 Billion
 
Shares Outstanding (12/2008) 31.9 Million
Market Capitalization $1.2 Billion
Shares Held By Institutions 34.5 Million
Institutional Holders 205
% Shares Held By Institutions %
Earnings Per Share (EPS) $0.90
P/E Ratio 18.90
Book Value Per Share $22.57
 
Gross Margin 22.90%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 0.39
Fiscal Year Ends December

About Treehouse Foods, Inc.

Treehouse Foods, Incorporated is considered to operate in the Consumer Goods sector. They specifically operate in the Processed/Packaged Goods business segment contained within the Food & Beverage industry.

The Company is a food manufacturer servicing mainly the retail grocery and foodservice distribution channels.