Report
Valens Research

THS - Embedded Expectations Analysis - 2018 07 05

TreeHouse Foods, Inc. (THS:USA) currently trades around corporate averages with a 23.3x UAFRS-based (Uniform) P/E. However, even at these levels, markets are pricing in fairly bearish expectations for the firm, and management has concerns about freight, costs, and various initiatives

Specifically, management is confident that they may struggle to pass on some costs to consumers, and that they may not be optimally positioned as a business. Moreover, they may be concerned about their supply chain consolidation efforts, and may have concerns about margin headwinds related to mix shift. Furthermore, they might lack confidence in their rationalization program, and might have concerns about their ability to maintain shareholder returns at current levels. Finally, they appear to have concerns about continued headwinds related to freight
Underlying
TreeHouse Foods

TreeHouse Foods is a consumer packaged food and beverage manufacturer operating across the United States, Canada, and Italy. The company's reportable segments are: Baked Goods, which sells bars, candy, cookies, crackers; in-store bakery products, pita chips, pretzels, refrigerated dough, and retail griddle waffles, pancakes, and French toast; Beverages, which sells broths, liquid non-dairy creamer, non-dairy powdered creamers, powdered drinks, ready-to-drink coffee, single serve hot beverages, teas, and sweeteners; and Meal Solutions, which sells aseptic cheese and pudding products, baking and mix powders, hot cereals, pasta, and skillet dinners, among others.

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Valens Research
Valens Research

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