Treehouse Foods Intrinsic Value – TREEHOUSE FOODS Reports Record Earnings for Third Quarter of FY 2023
November 29, 2023
🌥️Earnings Overview
Treehouse Foods ($NYSE:THS) reported total revenue of USD 863.3 million for the third quarter of Fiscal Year 2023 (ended September 30, 2023), a decrease of 1.3% from the same period the previous year. Their net income, however, was an impressive USD 7.1 million, representing a year-over-year increase of 107.8%.
Market Price
This was a 10.3% plunge from its last closing price of 42.5. Despite the decline in stock price, TREEHOUSE FOODS reported a solid quarter, demonstrating its commitment to strong financial performance. TREEHOUSE FOODS maintained its focus on cost efficiency, leveraging its tight margin management and accurate forecasting. As a result, the company was able to maintain profits despite the difficult economic environment.
Additionally, the company made significant investments in technology, which enabled them to streamline process and improve efficiency. With a strong foundation in place, the company is well-positioned to capitalize on opportunities in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Treehouse Foods. More…
| Total Revenues | Net Income | Net Margin |
| 3.63k | 22.2 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Treehouse Foods. More…
| Operations | Investing | Financing |
| -26.3 | 370.6 | -401.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Treehouse Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.32k | 2.62k | 30.67 |
Key Ratios Snapshot
Some of the financial key ratios for Treehouse Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.5% | -6.7% | 5.3% |
| FCF Margin | ROE | ROA |
| -3.8% | 7.0% | 2.8% |
Analysis – Treehouse Foods Intrinsic Value
At GoodWhale, we have conducted a thorough analysis of TREEHOUSE FOODS’s wellbeing. Our proprietary Valuation Line calculation has determined the fair value of the TREEHOUSE FOODS share to be around $40.7. Presently, TREEHOUSE FOODS stock is traded at $38.1, a price that is marginally undervalued by 6.3%. This creates a unique opportunity for potential investors to acquire the stock at a fair price. More…
Peers
The company was founded in 2004 and offers a variety of food products, including condiments, snacks, and meal kits. The company’s products are sold under a number of brand names, including Treehouse, Mrs. Dash, and Orville Redenbacher’s. The company has a number of competitors in the food manufacturing industry, including Bega Cheese Ltd, Post Holdings Inc, and JM Smucker Co.
– Bega Cheese Ltd ($ASX:BGA)
Bega Cheese Ltd is an Australian cheese manufacturer. The company has a market cap of 1.02 billion as of 2022 and a return on equity of 2.08%. The company produces a variety of cheeses, including cheddar, mozzarella, Swiss, and Parmesan. It also produces processed cheese, butter, and cream.
– Post Holdings Inc ($NYSE:POST)
Post Holdings Inc is a food and beverage company that manufactures, markets, and sells branded packaged foods in the United States. The company has a market cap of $5.5 billion and a return on equity of 22.81%. The company’s products include cereal, granola, oatmeal, pancakes, breading, croutons, and condiments. The company’s brands include Post, Shredded Wheat, Great Grains, Honey Bunches of Oats, Raisin Bran, Grape-Nuts, and Honey Comb.
– JM Smucker Co ($NYSE:SJM)
The J.M. Smucker Company has a market capitalization of $15.94 billion as of March 2022 and a return on equity of 7.03%. The company produces and markets food and beverage products, including coffee, peanut butter, shortening and oils, ice cream toppings, frozen juices and drinks, canned fruits and vegetables, condiments, and baking mixes under the following brand names: Smucker’s, Folgers, Dunkin’ Donuts, Jif, Crisco, Pillsbury, R.W. Knudsen Family, Hungry Jack, Café Bustelo, Martha White, truRoots, Sahale Snacks, Robin Hood, and Bick’s.
Summary
Treehouse Foods released their third quarter earnings for Fiscal Year 2023, reporting a total revenue of USD 863.3 million, a slight decrease from the previous year. Despite this, their net income saw a significant increase of 107.8% to USD 7.1 million. In response to the news, the stock price of Treehouse Foods moved down the same day.
Investors may be concerned about the decreased total revenue, but should be encouraged by the jump in net income. It remains to be seen whether Treehouse Foods can sustain their growth in the coming quarters and return the stock price to its previous highs.
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