GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Treehouse Foods Inc (NYSE:THS) » Definitions » Earnings Yield (Joel Greenblatt) %

Treehouse Foods (Treehouse Foods) Earnings Yield (Joel Greenblatt) %

: 4.49% (As of Dec. 2023)
View and export this data going back to 2005. Start your Free Trial

Treehouse Foods's Enterprise Value for the quarter that ended in Dec. 2023 was $3,524 Mil. Treehouse Foods's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $156 Mil. Treehouse Foods's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2023 was 4.49%.

The historical rank and industry rank for Treehouse Foods's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

THS' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -2.56   Med: 2.39   Max: 5.65
Current: 4.81

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Treehouse Foods was 5.65%. The lowest was -2.56%. And the median was 2.39%.

THS's Earnings Yield (Joel Greenblatt) % is ranked worse than
51.34% of 1940 companies
in the Consumer Packaged Goods industry
Industry Median: 5.035 vs THS: 4.81

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Treehouse Foods's Forward Rate of Return (Yacktman) % for the quarter that ended in Dec. 2023 was 8.76%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Treehouse Foods Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Treehouse Foods's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Treehouse Foods Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.11 2.77 -0.35 1.64 4.49

Treehouse Foods Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.64 2.46 3.77 4.85 4.49

Competitive Comparison

For the Packaged Foods subindustry, Treehouse Foods's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Treehouse Foods Earnings Yield (Joel Greenblatt) % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Treehouse Foods's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Treehouse Foods's Earnings Yield (Joel Greenblatt) % falls into.



Treehouse Foods Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Treehouse Foodss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=158.2/3523.745
=4.49 %

Treehouse Foods's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $156 Mil.



Treehouse Foods  (NYSE:THS) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Treehouse Foods Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Treehouse Foods's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Treehouse Foods (Treehouse Foods) Business Description

Traded in Other Exchanges
Address
2021 Spring Road, Suite 600, Oak Brook, IL, USA, 60523
TreeHouse Foods, the largest private label manufacturer in the U.S., is the product of a slew of acquisitions, the most significant being the 2016 acquisition of Ralcorp, Conagra's former private brands business. The firm plays in over 25 categories, including snacks like pretzels and cookies, meals like pasta and dry dinners, and single-serve beverages like pods and ready-to-drink coffee. Retailers represent its most significant end-market, where it sells products for resale under retailer brands, but it also serves foodservice customers (providing a similar service as its retail business), industrial (selling bulk food for repackaging and repurposing), and branded consumer goods firms (under co-packing arrangements). Over 90% of its revenue comes from the U.S.
Executives
Mark Hunter director 1801 CALIFORNIA STREET, SUITE 4600, DENVER CO 80202
Jana Partners Management, Lp director, other: See Remarks 767 5TH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Jana Partners Llc director, other: See Remarks 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Ann Sardini director 100 PIER 1 PLACE, FORT WORTH TX 76102
Joseph Scalzo director 1225 17TH STREET, SUITE 1000, DENVER CO 80202
Scott Ostfeld director 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153
Stephen Alan Landry officer: SVP, Chief Operations Officer 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Jeffrey M Haye officer: SVP, Chief Procurement Officer 2021 SPRING ROAD, OAK BROOK IL 60523
Timothy J Smith officer: SVP, Division President 5 CROSBY STREET, NEW YORK NY 10013
Curt B. Craig officer: Chief Supply Chain Officer 2021 SPRING ROAD, OAK BROOK IL 60523
Kristy N. Waterman officer: EVP, General Counsel 2711 NORTH HASKELL AVENUE, SUITE 3400, DALLAS TX 75204
Lori G Roberts officer: SVP of HR 1014 SUTTON PL, ST CHARLES IL 60174
Sean Lewis officer: SVP, Chief Customer Officer 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Clifford Braun officer: SVP, Chief Operations Officer 2021 SPRING ROAD, SUITE 600, OAK BROOK IL 60523
Gainor John P Jr director 11465 JOHNS CREEK PARKWAY, SUITE 400, JOHNS CREEK GA 30097