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Treehouse Foods Inc – Fruit and Vegetable Canning
TreeHouse Foods, Inc. is a leading manufacturer and distributor of private label packaged foods and beverages in North America. The Company has nearly 40 production facilities across North America and Italy, and its vision is to be the undisputed solutions leader for custom brands for its customers. TreeHouse Foods extensive product portfolio includes snacking, beverages and meal preparation products, available in shelf stable, refrigerated, frozen and fresh formats. The Company has a comprehensive offering of packaging formats and flavor profiles, and also offers clean label, organic and preservative-free ingredients across almost our entire portfolio. Our purpose is to make high quality food and beverages affordable to all.
Analysis Results
Intrinsic Value $36.85
Latest Price $49.39
Relative Value 34% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -8.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -8.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 108 103
2023 98.7 89.4
2024 89.9 77.6
2025 82.0 67.4
2026 74.7 58.5
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 2240 million. This corresponds to a present value of 1670 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 396 million. Adding in the terminal value gives a total present value of 2070 million.

There are presently 56.0 million outstanding shares, so the intrinsic value per share is 36.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,255,800,000
Current Cash 308,600,000
Current Liabilities 1,076,200,000
Current Debt 15,600,000
Non-Cash Working Capital (NCWC) -113,400,000
Change in NCWC -202,600,000
EBIT 121,000,000
Tax Provision -4,400,000
Depreciation and Amortization 213,900,000
Capital Expenditure -115,900,000
Unlevered Free Cash Flow 16,400,000
Current Assets 1,428,800,000
Current Cash 364,600,000
Current Liabilities 990,700,000
Current Debt 15,700,000
Non-Cash Working Capital (NCWC) 89,200,000
Change in NCWC -129,900,000
EBIT 220,200,000
Tax Provision -32,100,000
Depreciation and Amortization 203,200,000
Capital Expenditure -105,700,000
Unlevered Free Cash Flow 187,800,000
Current Assets 1,219,500,000
Current Cash 202,300,000
Current Liabilities 813,400,000
Current Debt 15,300,000
Non-Cash Working Capital (NCWC) 219,100,000
Change in NCWC -199,700,000
EBIT 212,600,000
Tax Provision -45,500,000
Depreciation and Amortization 210,600,000
Capital Expenditure -146,800,000
Unlevered Free Cash Flow 76,700,000
Current Assets 1,417,100,000
Current Cash 164,300,000
Current Liabilities 835,200,000
Current Debt 1,200,000
Non-Cash Working Capital (NCWC) 418,800,000
Change in NCWC -329,300,000
EBIT 210,600,000
Tax Provision -23,400,000
Depreciation and Amortization 258,300,000
Capital Expenditure -196,200,000
Unlevered Free Cash Flow -56,600,000
Current Assets 1,484,700,000
Current Cash 146,900,000
Current Liabilities 599,800,000
Current Debt 10,100,000
Non-Cash Working Capital (NCWC) 748,100,000
Change in NCWC -113,346,000
EBIT 267,200,000
Tax Provision -238,400,000
Depreciation and Amortization 287,600,000
Capital Expenditure -185,800,000
Unlevered Free Cash Flow 255,654,000
Current Assets 1,560,749,000
Current Cash 72,530,000
Current Liabilities 693,194,000
Current Debt 66,421,000
Non-Cash Working Capital (NCWC) 861,446,000
Change in NCWC 318,130,000
EBIT 270,174,000
Tax Provision 33,231,000
Depreciation and Amortization 288,238,000
Capital Expenditure -187,075,000
Unlevered Free Cash Flow 689,467,000
Current Assets 847,203,000
Current Cash 43,307,000
Current Liabilities 275,473,000
Current Debt 14,893,000
Non-Cash Working Capital (NCWC) 543,316,000
Change in NCWC -48,131,000
EBIT 241,553,000
Tax Provision 56,354,000
Depreciation and Amortization 122,067,000
Capital Expenditure -86,096,000
Unlevered Free Cash Flow 149,910,576
Current Assets 949,436,000
Current Cash 61,129,000
Current Liabilities 311,233,000
Current Debt 14,373,000
Non-Cash Working Capital (NCWC) 591,447,000
Change in NCWC 235,726,000
EBIT 220,575,000
Tax Provision 46,690,000
Depreciation and Amortization 115,915,000
Capital Expenditure -99,218,000
Unlevered Free Cash Flow 397,588,709
Current Assets 649,689,000
Current Cash 55,155,000
Current Liabilities 240,364,000
Current Debt 1,551,000
Non-Cash Working Capital (NCWC) 355,721,000
Change in NCWC 46,803,000
EBIT 184,111,000
Tax Provision 37,922,000
Depreciation and Amortization 108,642,000
Capital Expenditure -293,432,000
Unlevered Free Cash Flow -9,771,103
Current Assets 588,411,000
Current Cash 94,407,000
Current Liabilities 187,030,000
Current Debt 1,944,000
Non-Cash Working Capital (NCWC) 308,918,000
Change in NCWC 13,328,000
EBIT 182,005,000
Tax Provision 35,846,000
Depreciation and Amortization 98,215,000
Capital Expenditure -79,520,000
Unlevered Free Cash Flow 161,502,408

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