Treehouse Foods Intrinsic Value – TreeHouse Foods Increases Guidance for FY23 Adjusted EBITDA
June 18, 2023
🌥️Trending News
TREEHOUSE ($NYSE:THS): TreeHouse Foods Inc., a leading food manufacturer and distributor, saw its shares rise in value after increasing its guidance for adjusted EBITDA for fiscal year 2023. These offerings include shelf-stable and non-dairy beverages, baking and snack products, condiments, and other assorted items. The increased guidance is due to the continued successful implementation of the company’s growth and operational strategies, as well as its focus on cost control and efficient operations.
TreeHouse Foods’ portfolio of consumer-preferred brands and competitive advantages in sourcing, operations, and scale remain strong and will help the company continue to provide value to its clients and shareholders. With its increased guidance, the company is well-positioned to capitalize on the increasing demand for packaged food products and is expected to have a successful fiscal year 2023.
Price History
On Tuesday, TreeHouse Foods stock opened at $52.7 and closed at $52.8, up by 3.2% from last closing price of 51.2. The increase reflects the company’s ongoing strategic initiatives to optimize their operations and the benefits of cost-saving initiatives. The improved financial outlook has shown investors a positive sign and has resulted in a surge in the company’s stock price. 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 |
| 3.58k | -128.1 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Treehouse Foods. More…
| Operations | Investing | Financing |
| -111 | 405.7 | -470.5 |
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 |
| 4.25k | 2.55k | 30.27 |
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 |
| -6.0% | -22.0% | 2.9% |
| FCF Margin | ROE | ROA |
| -6.1% | 3.9% | 1.5% |
Analysis – Treehouse Foods Intrinsic Value
At GoodWhale, we have had the opportunity to analyze the financials of TREEHOUSE FOODS and provide our proprietary Valuation Line to determine its intrinsic value. After extensive analysis, we determined that the intrinsic value of the TREEHOUSE FOODS share is around $37.6. This value is significantly lower than the current market price of $52.8, where the company is being overvalued by 40.3%. More…
Peers
The company was founded in 2004 and offers a variety of food products, including condiments, snacks, and meal kits. The company’s products are sold under a number of brand names, including Treehouse, Mrs. Dash, and Orville Redenbacher’s. The company has a number of competitors in the food manufacturing industry, including Bega Cheese Ltd, Post Holdings Inc, and JM Smucker Co.
– Bega Cheese Ltd ($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 Inc. recently raised its adjusted EBITDA guidance for fiscal year 2023, which sent the stock price higher. Analysts believe that this new guidance signals tremendous potential for the company this year and beyond. The company has a long track record of success, being a major food manufacturer and distributor of dry grocery, refrigerated and frozen products in North America.
The company is investing heavily in new technology and processes to improve efficiency and reduce costs. Investors who are looking for a steady growth stock with long-term potential should consider TreeHouse Foods.
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