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NASDAQ:TSCO stands out as a stock that provides good value for the fundamentals it showcases.

By Mill Chart

Last update: Dec 23, 2024

Take a closer look at TRACTOR SUPPLY COMPANY (NASDAQ:TSCO), a remarkable value stock uncovered by our stock screener. NASDAQ:TSCO excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.


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What does the Valuation looks like for NASDAQ:TSCO

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:TSCO was assigned a score of 9 for valuation:

  • Based on the Price/Earnings ratio of 5.25, the valuation of TSCO can be described as very cheap.
  • Based on the Price/Earnings ratio, TSCO is valued cheaper than 100.00% of the companies in the same industry.
  • TSCO is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 4.80, which indicates a rather cheap valuation of TSCO.
  • Based on the Price/Forward Earnings ratio, TSCO is valued cheaply inside the industry as 98.33% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, TSCO is valued rather cheaply.
  • TSCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TSCO is cheaper than 96.67% of the companies in the same industry.
  • TSCO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TSCO is cheaper than 86.67% of the companies in the same industry.
  • The excellent profitability rating of TSCO may justify a higher PE ratio.

Profitability Analysis for NASDAQ:TSCO

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:TSCO has earned a 8 out of 10:

  • TSCO's Return On Assets of 11.39% is amongst the best of the industry. TSCO outperforms 87.50% of its industry peers.
  • Looking at the Return On Equity, with a value of 48.62%, TSCO belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
  • TSCO's Return On Invested Capital of 15.47% is amongst the best of the industry. TSCO outperforms 84.17% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TSCO is significantly above the industry average of 12.29%.
  • TSCO has a Profit Margin of 7.53%. This is amongst the best in the industry. TSCO outperforms 86.67% of its industry peers.
  • TSCO's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 10.04%, TSCO belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • TSCO's Operating Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TSCO was assigned a score of 5 for health:

  • TSCO has an Altman-Z score of 3.59. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
  • TSCO's Altman-Z score of 3.59 is fine compared to the rest of the industry. TSCO outperforms 78.33% of its industry peers.
  • The Debt to FCF ratio of TSCO is 3.49, which is a good value as it means it would take TSCO, 3.49 years of fcf income to pay off all of its debts.
  • TSCO has a better Debt to FCF ratio (3.49) than 70.00% of its industry peers.

Evaluating Growth: NASDAQ:TSCO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:TSCO boasts a 4 out of 10:

  • TSCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.49% yearly.
  • The Revenue has been growing by 12.97% on average over the past years. This is quite good.
  • TSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

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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