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THSTreeHouse Foods, Inc.
$24.43$1.5B
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  4. Financial Ratios

TreeHouse Foods, Inc. (THS) Financial Ratios

Latest Ratios: P/E Ratio 47.9x · EV/EBITDA 10.9x · ROE 1.7%. (2002–2024 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

THS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Market Cap$1.5B$1.8B$2.3B$2.8B$2.3B$2.4B$2.7B$2.8B$2.8B$4.0B$3.4B
Enterprise Value$2.7B$3.1B$3.6B$4.3B$4.0B$4.4B$4.8B$5.0B$5.2B$6.8B$4.6B
P/E Ratio →47.9068.8844.10——177.04————29.83
P/S Ratio0.440.550.680.840.810.550.640.620.580.651.07
P/B Ratio0.831.191.401.641.231.291.491.311.251.611.85
P/FCF11.5914.65141.68—8.947.7516.949.178.8213.8017.21
P/OCF5.506.9514.86—6.975.788.865.615.588.4012.02

P/E links to full P/E history page with 30-year chart

THS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
EV / Revenue—0.931.051.311.431.021.121.081.081.091.44
EV / EBITDA10.9512.5012.5333.9740.5112.6024.7916.1216.7835.0212.80
EV / EBIT26.5732.4022.8860.77—36.40—104.0655.77—21.37
EV / FCF—24.79219.34—15.8714.2729.9616.0716.3623.1623.25

THS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Gross Margin16.4%16.4%16.8%15.8%16.8%18.4%18.6%19.4%20.2%18.2%20.1%
Operating Margin3.1%3.1%4.3%-0.4%-1.6%3.4%-0.4%1.8%1.6%-1.5%7.5%
Net Profit Margin0.8%0.8%1.5%-4.4%-0.4%0.3%-8.4%-1.4%-5.8%-3.7%3.6%

Return on Capital

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
ROE1.7%1.7%3.2%-8.3%-0.7%0.7%-18.1%-2.9%-11.7%-10.5%6.4%
ROA0.7%0.7%1.3%-3.1%-0.2%0.3%-6.7%-1.1%-4.5%-4.5%3.0%
ROIC2.7%2.7%3.6%-0.3%-0.9%2.9%-0.3%1.4%1.2%-1.7%5.8%
ROCE3.1%3.1%4.3%-0.3%-1.0%3.4%-0.4%1.7%1.4%-2.1%6.9%

THS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Debt / Equity1.011.010.960.941.111.281.251.061.121.120.67
Debt / EBITDA6.276.275.5512.5420.746.7911.817.458.1614.483.42
Net Debt / Equity—0.830.770.920.951.091.140.991.071.090.65
Net Debt / EBITDA5.115.114.4412.2017.675.7610.776.927.7314.163.32
Debt / FCF—10.1477.65—6.926.5213.026.897.549.366.03
Interest Coverage1.631.631.96-0.18-0.611.42-0.160.790.65-0.815.27

THS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Current Ratio1.361.361.501.011.891.441.502.002.482.253.08
Quick Ratio0.630.630.740.341.490.840.831.270.940.840.96
Cash Ratio0.390.390.450.050.260.370.250.200.220.100.16
Asset Turnover—0.840.840.780.540.790.830.810.840.940.87
Inventory Turnover5.205.205.355.015.085.936.426.004.225.164.39
Days Sales Outstanding—15.9818.6817.5819.6225.9123.0327.9524.8125.3623.13

THS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016FY 2015
Earnings Yield2.1%1.5%2.3%——0.6%————3.4%
FCF Yield8.6%6.8%0.7%—11.2%12.9%5.9%10.9%11.3%7.2%5.8%
Buyback Yield10.2%8.1%4.3%0.0%1.1%1.0%0.0%1.9%1.0%0.0%0.0%
Total Shareholder Yield10.2%8.1%4.3%0.0%1.1%1.0%0.0%1.9%1.0%0.0%0.0%
Shares Outstanding—$53M$56M$56M$56M$57M$56M$56M$57M$56M$44M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowDeteriorating
Top Statement Risk

Operational restructuring and liquidity

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2025Q3)

Valuation Disconnected From Operational Reality

According to current market data, the TTM P/E of 47.90 appears significantly disconnected from the company's recent net losses, while the forward P/E of 12.84 suggests that investors are pricing in a recovery that remains highly speculative given the ongoing portfolio transformation and structural margin pressures.

The wide disparity between trailing and forward multiples indicates that the market is heavily discounting current restructuring-related earnings volatility. Investors should monitor whether the forward valuation accurately captures the risk of continued volume declines or if it relies on overly optimistic assumptions regarding margin expansion in the snacking segment.

Margin Erosion Amid Strategic Pivot

As reported in recent financial statements, the company's operating margin plummeted to -30.2% in 2025Q3, highlighting a severe deterioration in earning power that suggests the current cost structure is not yet aligned with the reduced scale of the post-divestiture business model.

The gross margin of 18.8% provides insufficient cushion to absorb the high fixed costs inherent in the manufacturing footprint, leading to the observed negative operating leverage. This trend warrants further investigation into whether the company can achieve sustainable profitability without further aggressive SKU rationalization or significant volume growth.

Working Capital Inefficiency Hinders Liquidity

Based on the provided quarterly data, the cash conversion cycle has expanded to 161 days in 2025Q3, driven by an alarming increase in days inventory outstanding to 357 days, which suggests that the company is struggling to manage its supply chain effectively during this period of transition.

The inability to optimize working capital, particularly regarding inventory levels, directly impacts the company's cash position and operational flexibility. This inefficiency appears structural rather than temporary, as the company continues to carry significant inventory burdens that do not align with current sales velocity.

Debt Burden Exacerbated By Equity

According to recent balance sheet filings, the debt-to-equity ratio has risen to 1.29 as of 2025Q3, reflecting a concerning trend where the erosion of the equity base is outpacing the company's efforts to deleverage its balance sheet through asset divestitures and debt repayment.

The negative interest coverage ratio of -10.63 indicates that the company is currently unable to service its debt obligations from operating income alone. This situation leaves the company in a vulnerable position, necessitating a close watch on potential refinancing risks and the sustainability of its current capital structure.

Misapplication of Price-to-Sales Multiples

The market's reliance on the P/S ratio of 0.44 to value TreeHouse Foods is fundamentally flawed, as it obscures the company's inability to convert revenue into meaningful cash flow due to its high-variable-cost structure and the ongoing, dilutive impact of its portfolio restructuring efforts.

Investors should instead focus on EV/EBITDA or FCF-based metrics, which better account for the capital-intensive nature of the manufacturing footprint and the reality of the company's current earnings quality. Using P/S ignores the critical reality that revenue growth is meaningless if the underlying margins remain structurally impaired.

Download Financial Ratios Data

Includes 30+ ratios · 23 years · Updated daily

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THS — Frequently Asked Questions

Quick answers to the most common questions about buying THS stock.

What is TreeHouse Foods, Inc.'s P/E ratio?

TreeHouse Foods, Inc.'s current P/E ratio is 47.9x. The historical average is 42.2x. This places it at the 79th percentile of its historical range.

What is TreeHouse Foods, Inc.'s EV/EBITDA?

TreeHouse Foods, Inc.'s current EV/EBITDA is 10.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.6x.

What is TreeHouse Foods, Inc.'s ROE?

TreeHouse Foods, Inc.'s return on equity (ROE) is 1.7%. The historical average is 2.3%.

Is THS stock overvalued?

Based on historical data, TreeHouse Foods, Inc. is trading at a P/E of 47.9x. This is at the 79th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are TreeHouse Foods, Inc.'s profit margins?

TreeHouse Foods, Inc. has 16.4% gross margin and 3.1% operating margin.

How much debt does TreeHouse Foods, Inc. have?

TreeHouse Foods, Inc.'s Debt/EBITDA ratio is 6.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.