THS
Treehouse Foods Inc
Consumer
07/05/2020
Presented
| Date | 07/01/2020 |
| Price | $43.16 |
| Market Cap | $2.44B |
| Ent Value | $4.51B |
| P/E Ratio | N/A |
| Book Value | $31.70 |
| Div Yield | 0% |
| Shares O/S | 56.43M |
| Ave Daily Vol | 696,596 |
| Short Int | 8.98% |
Current
| Price | $41.61 |
| Market Cap | $2.16B |
| TreeHouse Foods, Inc. is a food manufacturer servicing primarily in retail grocery and foodservice channels. Its products include non dairy powdered creamers and sweeteners; condensed, ready to serve, and powdered soups; refrigerated and shelf stable salad dressings and sauces; powdered drink mixes; single serve hot beverages; specialty teas; hot and cold cereals; macaroni and cheese, skillet dinners and other value added side dishes and salads; salsa and Mexican sauces; jams and pie fillings; pickles and related products; aseptic sauces; and liquid non dairy creamer. It operates through the following segments: Baked Goods, Beverages and Meal Solutions. The Baked Goods segment sells bars; candy; cookies; crackers; in-store bakery products; pita chips; pretzels; refrigerated dough; and retail griddle waffles, pancakes, and French toast. The Beverages segment sells broths; liquid non-dairy creamer; non-dairy powdered creamers; powdered drinks; ready-to-drink coffee; single serve hot beverages; specialty teas, and sweeteners. The Meal Solutions segment sells aseptic cheese and pudding products; baking and mix powders; hot cereals; jams, preserves, and jellies; macaroni and cheese; mayonnaise; Mexican, barbeque, and other sauces; pasta; pickles and related products; powdered soups and gravies; refrigerated and shelf stable dressings and sauces; skillet dinners; and table and flavored syrups. The company was founded on January 25, 2005 and is headquartered in Oak Brook, IL. |
Publicly traded companies mentioned herein: TreeHouse Foods Inc (THS)
Highlights
The presenter is short shares of THS, a private label food manufacturer that has performed well in part due to the consensus belief that the company will benefit from “eat-at-home" trends driven by COVID-19. He believes the company is losing share within the private label food space, a category which is facing headwinds as a whole, and investors are valuing it similarly to brand-name competitors. Executive turnover has been high over the past 2-3 years, the current management team is perceived as weak, and much of their experience is branded vs. private label, which is a significant issue in the presenter’s opinion. Finally, he is of the view that the company’s reporting quality is weak, specifically surrounding disclosure/segmentation, factoring of receivables, and working capital.
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