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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on THS

TreeHouse Foods' recent performance has been driven by strategic acquisitions, including the Harris Tea acquisition, which has contributed to operational efficiency and supply-chain savings. The company is executing a plan to exit low-margin businesses and restructure operations to drive long-term shareholder value and cost savings. Management is guiding for improved EBITDA and cash flow this year. A $2.9 billion go-private deal with Investindustrial has been announced, with the transaction expected to close in the first quarter of 2026.

1.c. Company Highlights

2. TreeHouse Foods' Q2 2025 Earnings: A Strong Performance Amidst Macro Headwinds

TreeHouse Foods reported a robust financial performance in Q2 2025, with adjusted net sales increasing by 1.4% year-over-year to and adjusted EBITDA of $73.3 million, up 4% year-over-year. The company's adjusted EBITDA margin expanded by 20 basis points to 9.1%. The earnings per share (EPS) came in at $0.17, beating estimates of $0.1. The company's financial performance was a testament to its ability to execute on its plans and drive profits despite the challenging macro environment.

Publication Date: Aug -22

📋 Highlights
  • Adjusted EBITDA Growth:: Achieved $73.3M in Q2 2025, a 4% YoY increase with a margin of 9.1% (+20 bps).
  • Margin Improvement Plan:: Structural cost reductions and plant consolidations expected to benefit margins by 2025, with 2026 targeted for growth.
  • Private Label Market Share:: Gained share in 4 of 5 top categories, maintaining pricing discipline amid commodity costs.
  • Supply Chain Investments:: Northlake facility acquisition and 100% service in broth category drive peak season readiness.
  • Cash Flow Guidance:: Free cash flow of $130M+ reaffirmed, with Q4 2025 expected to see margin improvements from supply chain savings.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by its ability to hold or gain share in four of its top five categories. According to Steven Oakland, "We've actually moved our prices the same or maybe even $0.01 or $0.02 less when it comes to shelf price. So that commodity increase is pretty much the same." This pricing strategy helped the company to maintain its margin despite the challenging environment.

Cash Flow and Valuation

TreeHouse Foods reiterated its free cash flow expectations of at least $130 million. The company's free cash flow yield stands at 9.46%, indicating a decent return for investors. The stock's valuation metrics, such as the P/E Ratio of 48.18 and EV/EBITDA of 10.44, suggest that the market is pricing in a moderate growth expectation. The company's return on invested capital (ROIC) stands at 4.13%, indicating a relatively low return on investment.

Outlook and Growth Prospects

The company is confident about its margin improvement plan, which is expected to benefit results for the remainder of the year and beyond. Steven Oakland mentioned that they are "keenly focused on further strengthening the foundation of our supply chain and margin management initiatives." The company's underlying volume decline is expected to be around 1% for the year, and analysts estimate next year's revenue growth at 1.2%. The company's focus on innovation and its ability to capture 20% of a great category, as mentioned by Steven Oakland, are expected to drive growth in the long term.

Pricing Actions and Gross Margin Evolution

3. NewsRoom

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Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches in the TreeHouse Foods Buyout

Dec -01

Source: globenewswire.com

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Envestnet Asset Management Inc. Reduces Stock Holdings in TreeHouse Foods, Inc. $THS

Nov -27

Source: defenseworld.net

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Halper Sadeh LLC Encourages THS, CDTX, SPNS Shareholders to Contact the Firm to Discuss Their Rights

Nov -22

Source: globenewswire.com

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Bank of New York Mellon Corp Sells 2,565 Shares of TreeHouse Foods, Inc. $THS

Nov -22

Source: defenseworld.net

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SHAREHOLDER ALERT: The M&A Class Action Firm Continues to Investigate the Mergers-NUVSF, NDTAF, THS, and CDTX

Nov -21

Source: prnewswire.com

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Campbell & CO Investment Adviser LLC Sells 73,125 Shares of TreeHouse Foods, Inc. $THS

Nov -18

Source: defenseworld.net

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Halper Sadeh LLC Encourages CDTX, MRSN, HOLX Shareholders to Contact the Firm to Discuss Their Rights

Nov -14

Source: prnewswire.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of TreeHouse Foods, Inc. (NYSE: THS)

Nov -12

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.81%)

6. Segments

Snacking

Expected Growth: 3.8%

TreeHouse Foods' snacking segment growth of 3.8% is driven by increasing demand for healthy and convenient food options, strategic acquisitions, and expansion of private label offerings. Additionally, the company's focus on e-commerce and digital marketing has improved brand visibility, contributing to the segment's growth.

Beverages & Drink Mixes

Expected Growth: 3.5%

TreeHouse Foods' Beverages & Drink Mixes segment growth of 3.5% is driven by increasing demand for private label products, expansion in e-commerce channels, and strategic acquisitions. Additionally, the company's focus on product innovation, particularly in the low-calorie and natural ingredients space, is expected to contribute to growth. Furthermore, the rising popularity of at-home consumption and meal prep is also boosting sales.

Grocery

Expected Growth: 4.2%

TreeHouse Foods' Grocery segment growth of 4.2% is driven by increasing demand for private label products, strategic acquisitions, and expansion into new channels such as e-commerce and meal kits. Additionally, the company's focus on product innovation, cost savings initiatives, and supply chain optimization have contributed to the segment's growth.

7. Detailed Products

Baking and Snack

TreeHouse Foods offers a wide range of baking and snack products, including cookies, crackers, and snack nuts.

Beverages

The company provides a variety of beverages, such as coffee, tea, and broths, under various brand names.

Condiments and Spreads

TreeHouse Foods offers a range of condiments and spreads, including ketchup, mustard, and peanut butter.

Meals and Soups

The company provides a variety of meals and soups, including macaroni and cheese, chicken noodle soup, and beef stew.

Pantry

TreeHouse Foods offers a range of pantry staples, including pasta, rice, and canned goods.

Snack Bars

The company provides a variety of snack bars, including granola bars, protein bars, and snack bars.

8. TreeHouse Foods, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

TreeHouse Foods, Inc. operates in a competitive industry with many substitutes available to consumers. However, the company's focus on private label products and its strong relationships with retailers help to mitigate the threat of substitutes.

Bargaining Power Of Customers

TreeHouse Foods, Inc. has a high bargaining power of customers due to the concentration of its customer base. The company's top customers, including Walmart and Costco, have significant bargaining power, which can impact pricing and profitability.

Bargaining Power Of Suppliers

TreeHouse Foods, Inc. has a low bargaining power of suppliers due to its diversified supplier base and lack of dependence on a single supplier. The company's scale and purchasing power also help to mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants in the food manufacturing industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles. TreeHouse Foods, Inc.'s established relationships with retailers and its scale of operations also make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry in the food manufacturing industry is high due to the large number of competitors and the low switching costs for consumers. TreeHouse Foods, Inc. competes with other large food manufacturers, as well as smaller, niche players, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.32%
Debt Cost 5.69%
Equity Weight 53.68%
Equity Cost 5.69%
WACC 5.69%
Leverage 86.28%

11. Quality Control: TreeHouse Foods, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Farmer Bros

A-Score: 3.3/10

Value: 7.8

Growth: 4.1

Quality: 2.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.7

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BRC

A-Score: 3.2/10

Value: 7.0

Growth: 6.4

Quality: 3.8

Yield: 0.0

Momentum: 0.0

Volatility: 2.0

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TreeHouse Foods

A-Score: 3.0/10

Value: 6.6

Growth: 4.2

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

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Beyond Meat

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Value: 9.0

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

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Real Good Food

A-Score: 2.8/10

Value: 9.8

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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Hain Celestial

A-Score: 2.5/10

Value: 9.8

Growth: 0.8

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.71$

Current Price

23.71$

Potential

-0.00%

Expected Cash-Flows