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Is this Large Market Cap Stock target price reasonable for Treehouse Foods, Inc. (NYSE:THS)?

The company in question is, Treehouse Foods, Inc. (NYSE:THS) currently with a stock price of 87.55 (0.02% today). The market cap for Treehouse Foods, Inc. is 4991.84, and is in the sector Consumer Goods, and Processed & Packaged Goods industry. The target price for Treehouse Foods, Inc. is 110.5. Currently Treehouse Foods, Inc. is trading with a P/E of 51.19, and a forward P/E of 21.04. Average volume for Treehouse Foods, Inc. is 782.8 and so far today it is 186446.

Performance in the last year for Treehouse Foods, Inc. has been 6.20%. For EPS growth, Treehouse Foods, Inc. has seen a growth of 17.70%, and is looking to grow in the next year to 35.42%. More long term stats show that EPS growth has been 0.90% over the last five years and could be 14.20% for the next five years. Treehouse Foods, Inc. has seen sales growth quarter over quarter at 103.00%, with EPS growth quarter over quarter at -75.80%. The 20-day simple moving average is -4.54%, with the 200-day simple moving average coming to -2.05%.

Since the IPO date for Treehouse Foods, Inc. on the 6/28/2005, Treehouse Foods, Inc. has seen performance year to date to be 11.56%. With Treehouse Foods, Inc. trading at 87.55, the dividend yield is *TBA, and the EPS is 1.71.

So could Treehouse Foods, Inc., be undervalued? Well as said before P/E is 51.19. The PEG is 3.6, P/S is 1.12 and the P/B is at 1.8. The P/cash is 81.57, with P/free cash flow at 20.52.

Treehouse Foods, Inc. ability to deal with debt shows that the current ratio is 2.3, and the quick ratio is 0.8. This is with long term debt/equity at 1.04, and total debt/equity at 1.06.

In terms of margins, Treehouse Foods, Inc. has a gross margin of 18.60%, an operating margin of 4.70% and a profit margin of 1.70%.Payout ratio for Treehouse Foods, Inc. is 0.00%. Return on assets come to 1.50% with return on investment coming to 5.90%.

Insider ownership for Treehouse Foods, Inc., is at 0.50% and institutional ownership comes to *TBA. Outstanding shares are at 57.03. While shares float is 55.53. The float short is currently 7.80%, and short ratio is 5.54.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Mark Hines

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