TreeHouse Foods operates as a food and beverage manufacturer in the United States and Canada. The company's product categories include beverages, salad dressings, snacks, beverage enhancers, pickles, Mexican and other sauces, soup and infant feeding, cereals, dry dinners, aseptic products, jams and other products. The company was founded in 2005 and is based in Oak Brook, Illinois.
THS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for THS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that TreeHouse Foods Inc ranked in the 53th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of TreeHouse Foods Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 50. Notably, its equity weight is greater than only 18.68% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
TreeHouse Foods Inc's effective tax rate, as measured by taxes paid relative to net income, is at 28 -- greater than 88.94% of US stocks with positive free cash flow.
TreeHouse Foods Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1.48. This coverage rate is greater than that of merely 19.03% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as THS, try UN, PSMT, HELE, GIS, and CCEP.
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TreeHouse Foods ([[THS]] +0.2%) to offer $400M of senior unsecured notes due 2028. Net proceeds will be used to fund the redemption of $375.9M outstanding 4.875% senior notes due 2022 at 100% of the principal amount and any remaining net proceeds will be used for general corporate purposes....
TreeHouse Foods, Inc. (NYSE: THS) ("TreeHouse") announced today the pricing of its $500 million in aggregate principal amount of 4.000% senior unsecured notes due 2028 (the "Notes") in an underwritten public offering at an issue price of 100.000%. The offering has been upsized from the previously announced amount of $400 million. The Notes will pay interest at the rate of 4.000% per annum and mature on September 1, 2028. The Notes will be guaranteed, with certain exceptions, by TreeHouse's existing and future U.S. subsidiaries on a senior unsecured basis. The offering of the Notes is expected to close on September 9, 2020, subject to customary closing conditions.