TreeHouse Foods' 15min chart sees KDJ Death Cross, Bearish Marubozu signal.

According to the 15-minute chart of TreeHouse Foods, a bearish signal has been observed, as evidenced by the KDJ Death Cross and Bearish Marubozu pattern on September 16, 2022 at 1:45 pm. This indicates that the momentum of the stock price is shifting towards the downside, and there is a potential for further decreases in value. Sellers appear to be in control of the market, and the bearish momentum is likely to continue.

A recent analysis of TreeHouse Foods' (THS) 15-minute chart revealed a significant bearish signal on September 16, 2022, at 1:45 pm. The KDJ Death Cross and Bearish Marubozu pattern indicate a potential shift in momentum towards the downside, suggesting further decreases in the stock price. Sellers appear to be dominant, and the bearish trend is likely to continue.

TreeHouse Foods operates in the snack bar business and was recently acquired by John B. Sanfilippo & Son (JBSS) for $61 million. The acquisition included the snack bar business with $120 million in revenue, $37 million in inventory, and negative adjusted EBITDA. However, the volume of bars dropped nearly 17% in the fourth quarter, indicating challenges in the snack bar segment.

JBSS, a leading processor and distributor of nuts and snack bars, faces several headwinds. The company reported a 2.3% decline in earnings per share for FY2025 due to decreases in gross profit and increases in interest expenses. The acquisition of TreeHouse Foods was the largest in JBSS's history, and while the purchase price was attractive, the company is currently facing difficulties in the snack bar business.

The snack bar business is competitive, with major FMCG companies such as General Mills (GIS), PepsiCo (PEP), Mondelez (MDLZ), and Mars vying for market share. JBSS is investing heavily in production to grow in the nutrition bars sub-category, but the challenges in the snack bar segment could impact its profitability.

Despite these challenges, JBSS has a strong track record of profitable growth and remains a market leader in the nuts business. The company's core market is expected to grow, and it is pushing into a new and complementary category. However, investors should be cautious due to the current bearish signals in THS and the challenges faced by JBSS in the snack bar business.

For investors looking for a large margin of safety, JBSS shares are not yet a buy, with an attractive trailing P/E multiple of 12.6x. Assuming current profitability is close to the bottom, a safer buy range would be between $55-60. The company's net debt to EBITDA ratio stands at 0.9x, indicating a comfortable debt level.

In conclusion, while JBSS has a strong track record and positive prospects, the recent bearish signals in TreeHouse Foods and the challenges in the snack bar business warrant caution. Investors should closely monitor the company's performance and consider the potential risks before making investment decisions.

References
John B. Sanfilippo & Son: It's Not Too Nuts To See A Small Upside^[1] https://seekingalpha.com/article/4822073-john-b-sanfilippo-and-son-its-not-too-nuts-to-see-a-small-upside