TreeHouse Foods Price To Sales vs. Cash Per Share

T4H Stock  EUR 31.60  0.20  0.64%   
Based on TreeHouse Foods' profitability indicators, TreeHouse Foods may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess TreeHouse Foods' ability to earn profits and add value for shareholders.
For TreeHouse Foods profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TreeHouse Foods to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TreeHouse Foods utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TreeHouse Foods's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TreeHouse Foods over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in TreeHouse Stock please use our How to Invest in TreeHouse Foods guide.
Please note, there is a significant difference between TreeHouse Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if TreeHouse Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TreeHouse Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

TreeHouse Foods Cash Per Share vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining TreeHouse Foods's current stock value. Our valuation model uses many indicators to compare TreeHouse Foods value to that of its competitors to determine the firm's financial worth.
TreeHouse Foods is currently regarded as top stock in price to sales category among its peers. It also is currently regarded as top stock in cash per share category among its peers fabricating about  2.73  of Cash Per Share per Price To Sales. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the TreeHouse Foods' earnings, one of the primary drivers of an investment's value.

TreeHouse Cash Per Share vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

TreeHouse Foods

P/S

 = 

MV Per Share

Revenue Per Share

 = 
0.52 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.

TreeHouse Foods

Cash Per Share

 = 

Total Cash

Average Shares

 = 
1.41 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.

TreeHouse Cash Per Share Comparison

TreeHouse Foods is currently under evaluation in cash per share category among its peers.

TreeHouse Foods Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in TreeHouse Foods, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TreeHouse Foods will eventually generate negative long term returns. The profitability progress is the general direction of TreeHouse Foods' change in net profit over the period of time. It can combine multiple indicators of TreeHouse Foods, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
TreeHouse Foods, Inc. operates as a food and beverage manufacturer in the United States, Canada, and Italy. TreeHouse Foods, Inc. was founded in 1862 and is based in Oak Brook, Illinois. TreeHouse Foods operates under Packaged Foods classification in Germany and is traded on Frankfurt Stock Exchange. It employs 12700 people.

TreeHouse Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on TreeHouse Foods. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TreeHouse Foods position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TreeHouse Foods' important profitability drivers and their relationship over time.

Use TreeHouse Foods in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TreeHouse Foods position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TreeHouse Foods will appreciate offsetting losses from the drop in the long position's value.

TreeHouse Foods Pair Trading

TreeHouse Foods Pair Trading Analysis

The ability to find closely correlated positions to TreeHouse Foods could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TreeHouse Foods when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TreeHouse Foods - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TreeHouse Foods to buy it.
The correlation of TreeHouse Foods is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TreeHouse Foods moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TreeHouse Foods moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TreeHouse Foods can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your TreeHouse Foods position

In addition to having TreeHouse Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Software Thematic Idea Now

Software
Software Theme
Companies that develop and distribute software and software systems to individuals or business. The Software theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Software Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in TreeHouse Stock

When determining whether TreeHouse Foods is a strong investment it is important to analyze TreeHouse Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact TreeHouse Foods' future performance. For an informed investment choice regarding TreeHouse Stock, refer to the following important reports:
Check out World Market Map.
For more detail on how to invest in TreeHouse Stock please use our How to Invest in TreeHouse Foods guide.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project TreeHouse Foods' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of TreeHouse Foods at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include TreeHouse Foods' income statement, its balance sheet, and the statement of cash flows.
Potential TreeHouse Foods investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although TreeHouse Foods investors may work on each financial statement separately, they are all related. The changes in TreeHouse Foods's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on TreeHouse Foods's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.