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ZYBERNO

Stock Report

Updated Jun 2, 2026

TreeHouse Foods, Inc. (THS)

Consumer Staples • NYSE

$24.43

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

15.0/100

POOR BUSINESS

TreeHouse Foods, Inc. (THS) scores 15/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full THS quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full THS valuation analysis · → View full THS Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-16.5%)

Debt-to-Equity (Solvency Risk):POOR (1.30x)

Operating Margin (Operational Efficiency):CRITICAL (-4.6%)

Return on Capital (Capital Efficiency):CRITICAL (-4.1%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

TreeHouse Foods, Inc. (THS) stock report — Zyberno Score 15/100 (POOR BUSINESS). Full financial analysis on Zyberno.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:24.43

Market Cap:$1.23B

Valuation Multiples (3)

P/B Ratio:0.98x

P/S Ratio:0.37x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$2.73B

Ev Ebitda Ratio:58.81x

B. Profitability Assessment

Return Metrics (5)

ROE:

-16.5%

📊 Click to view full THS ROE analysis →

ROA:-6.1%

Roic:

-4.1%

📊 Click to view full THS ROIC analysis →

Reinvestment Rate:29.8%

Fundamental Growth Rate (g):-1.2%

Margin Analysis (3)

Operating Margin Ttm:-4.6%

Net Margin Ttm:-7.2%

Ebitda Margin:1.4%

TTM Performance (3)

Gross Margin Ttm:17.7%

Operating Margin Ttm:-4.6%

Net Margin Ttm:-7.2%

Yield Metrics (2)

Earnings Yield:-$19.77

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

-4.00

📊 Click to view full THS Earnings Surprise analysis →

EPS Surprise vs Expected:-420,900.0%

Latest Earnings Filed:2025-11-10

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-8.2%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):67.7%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):-1.2%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):5.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.29x

Quick Ratio:0.40x

Cash Ratio:0.03x

Leverage Analysis (3)

Debt To Equity Ttm:1.30x

Debt-to-Equity Ratio:1.30x

Debt To Ebitda:32.68x

Coverage Ratios (2)

Interest Coverage Ratio:1.27x

Times Interest Earned:1.27

Capital Structure (4)

Working Capital:219,800,000.00

Cash And Cash Equivalents:21,000,000.00

Long Term Debt:$1.51B

Net Debt:$1.50B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $3.34B

Linear Growth: -8.2%

📊 Click to view full THS Revenue analysis & methodology →

Cost Of Revenue Ttm:$2.75B

Profitability Breakdown (2)

Gross profit TTM: $589.20M

Linear Growth: -4.4%

📊 Click to view full THS Gross Profit analysis & methodology →

Operating income TTM: -$151.80M

Linear Growth: 5.9%

📊 Click to view full THS Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$241.80M

Linear Growth: 67.7%

📊 Click to view full THS Net Income analysis & methodology →

Income Before Tax:-$243.10M

Ebitda Ttm:46,400,000.00

Operating Expenses (5)

Operating Expenses:741,000,000.00

R And D Expense:13,900,000.00

Sga Expense:194,300,000.00

Income Tax Expense:-$1.30M

Interest Expense:81,400,000.00

Expense Ratios (3)

R And D To Revenue Percentage:1.7%

Sga To Revenue Percentage:23.1%

Ebitda Margin:1.4%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$3.78B

Current Assets:$968.60M

Ppe Net:0.00

Goodwill:1,601,400,000.00

Intangible Assets:$254.30M

Liability Structure (4)

Total Liabilities:2,513,500,000.00

Current Liabilities:748,800,000.00

Long Term Debt:$1.51B

Short Term Debt:$10.70M

Equity & Capital (3)

Equity:$1.26B

Retained Earnings:-$522.50M

Common Stock:90,000,000.00

Working Capital Items (3)

Accounts Receivable:221,700,000.00

Inventory:668,200,000.00

Accounts Payable:554,700,000.00

Special Items (2)

Contract Liabilities:22,100,000.00

Stock Based Compensation:4,800,000.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $264.70M

Linear Growth: -1.2%

-$327.20M

Investment Activities (1)

Investing Cash Flow:-$231.10M

Financing Activities (3)

Financing Cash Flow:$11.20M

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:198,200,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-4.82

Eps diluted TTM: -$4.83

Linear Growth: 71.3%

📊 Click to view full THS EPS analysis & methodology →

Earnings Per Share Ttm:-$4.79

Revenue & Cash Per Share (2)

Sales Per Share Ttm:66.06

Operating Cash Flow Per Share:$5.26

Book Value & Capital (2)

Book Value Per Share:$25.00

Cash Per Share:0.42

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.85x

Working Capital Turnover Ttm:15.18x

Receivables Management (2)

Receivables Turnover Ttm:15.05x

Days Sales Outstanding Ttm:24.26

Inventory Management (2)

Inventory Turnover Ttm:4.11x

Days Inventory Outstanding Ttm:88.79

Payables & Cash Cycle (2)

Days Payable Outstanding:73.71

Cash Conversion Cycle:39.34

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:20.00

Quality Score:70.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (2)

Reinvestment Rate:29.8%

Fundamental Growth Rate (g):-1.2%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-8.2%

Net Income Growth Rate (Linear):67.7%

Operating Income Growth Rate (Linear):5.9%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):-1.2%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):-4.4%

Book Value Growth Rate (Linear):-6.7%

C. Company Profile & Context

Corporate Information (6)

Symbol:THS

Company Name:TreeHouse Foods, Inc.

Sector:Consumer Staples

Industry:Canned, Frozen & Preservd Fruit, Veg & Food Specialties

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:50.50M

Shares Outstanding Basic:50.50M

Shares Outstanding Diluted:50.50M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-02 14:37:44 UTC

Data Timestamp:2026-06-02T14:37:44.955539