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Why the quality investor may take a look at NASDAQ:TSCO.

By Mill Chart

Last update: Oct 18, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TRACTOR SUPPLY COMPANY (NASDAQ:TSCO) is suited for quality investing. Investors should of course do their own research, but we spotted TRACTOR SUPPLY COMPANY showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Looking into the quality metrics of TRACTOR SUPPLY COMPANY

  • TRACTOR SUPPLY COMPANY has demonstrated significant revenue growth over the past 5 years, with a 12.97% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 17.65%, TRACTOR SUPPLY COMPANY demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • TRACTOR SUPPLY COMPANY demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.87, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • TRACTOR SUPPLY COMPANY exhibits impressive Profit Quality (5-year) with a 81.97% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • TRACTOR SUPPLY COMPANY has demonstrated consistent growth in EBIT over the past 5 years, with a strong 16.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • TRACTOR SUPPLY COMPANY has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:TSCO telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall TSCO gets a fundamental rating of 5 out of 10. We evaluated TSCO against 123 industry peers in the Specialty Retail industry. TSCO has an excellent profitability rating, but there are some minor concerns on its financial health. TSCO is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of TSCO for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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TRACTOR SUPPLY COMPANY

NASDAQ:TSCO (10/17/2024, 9:08:30 PM)

After market: 298.32 0 (0%)

298.32

-4.48 (-1.48%)

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