The Analyst Verdict: Treehouse Foods In The Eyes Of 4 Experts

In the latest quarter, 4 analysts provided ratings for Treehouse Foods THS, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $34.25, a high estimate of $36.00, and a low estimate of $31.00. Marking an increase of 0.74%, the current average surpasses the previous average price target of $34.00.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Treehouse Foods by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Treehouse Foods. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Treehouse Foods compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Treehouse Foods's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Treehouse Foods's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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All You Need to Know About Treehouse Foods

TreeHouse Foods is the largest pure-play private-label manufacturer in the US. Much larger in the past following the 2016 acquisition of Ralcorp, Conagra's former private-label business, the company has since divested several businesses to focus on high-growth categories. At present, the company produces and sells snacks (crackers, pretzels, cookies, and so on), beverages and drink mixes (such as nondairy creamer, coffee, tea), and a select number of grocery products (pickles, refrigerated dough, hot cereal, cheese, and pudding). Its most important sales channel is through retail grocery stores that sell its products under their own brands, with co-manufacturing and food away from home as much smaller channels of distribution for its fare.

Understanding the Numbers: Treehouse Foods's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Treehouse Foods's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -2.8% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -0.41%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Treehouse Foods's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -0.22%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Treehouse Foods's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.09%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Treehouse Foods's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.99, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.