TRACTOR SUPPLY COMPANY (TSCO)
US8923561067 - Common Stock
We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 122 industry peers in the Specialty Retail industry. While TSCO has a great profitability rating, there are some minor concerns on its financial health. TSCO is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TSCO very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TSCO was profitable.
TSCO had a positive operating cash flow in the past year.
In the past 5 years TSCO has always been profitable.
Each year in the past 5 years TSCO had a positive operating cash flow.
1.2 Ratios
TSCO has a Return On Assets of 11.39%. This is amongst the best in the industry. TSCO outperforms 87.60% of its industry peers.
With an excellent Return On Equity value of 48.62%, TSCO belongs to the best of the industry, outperforming 93.39% of the companies in the same industry.
TSCO has a Return On Invested Capital of 15.47%. This is amongst the best in the industry. TSCO outperforms 84.30% 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 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROIC | 15.47% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.54%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.4%
1.3 Margins
With an excellent Profit Margin value of 7.53%, TSCO belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
In the last couple of years the Profit Margin of TSCO has grown nicely.
With an excellent Operating Margin value of 10.04%, TSCO belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (36.29%) which is in line with its industry peers.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% |
OM growth 3Y0.41%
OM growth 5Y2.74%
PM growth 3Y2.55%
PM growth 5Y2.5%
GM growth 3Y0.46%
GM growth 5Y1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TSCO is creating value.
The number of shares outstanding for TSCO has been reduced compared to 1 year ago.
Compared to 5 years ago, TSCO has less shares outstanding
Compared to 1 year ago, TSCO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.59 indicates that TSCO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.59, TSCO is doing good in the industry, outperforming 78.51% of the companies in the same industry.
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 Debt to FCF ratio of 3.49. This is in the better half of the industry: TSCO outperforms 70.25% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that TSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, TSCO perfoms like the industry average, outperforming 44.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.6
WACC9.65%
2.3 Liquidity
TSCO has a Current Ratio of 1.48. This is a normal value and indicates that TSCO is financially healthy and should not expect problems in meeting its short term obligations.
TSCO's Current ratio of 1.48 is in line compared to the rest of the industry. TSCO outperforms 59.50% of its industry peers.
A Quick Ratio of 0.17 indicates that TSCO may have some problems paying its short term obligations.
TSCO's Quick ratio of 0.17 is on the low side compared to the rest of the industry. TSCO is outperformed by 89.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.39% over the past year.
Measured over the past years, TSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.49% on average per year.
Looking at the last year, TSCO shows a decrease in Revenue. The Revenue has decreased by -0.89% in the last year.
TSCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.97% yearly.
EPS 1Y (TTM)0.39%
EPS 3Y13.67%
EPS 5Y18.49%
EPS Q2Q%-3.86%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Sales Q2Q%1.65%
3.2 Future
Based on estimates for the next years, TSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
EPS Next Y3.88%
EPS Next 2Y5.51%
EPS Next 3Y7.3%
EPS Next 5Y9.25%
Revenue Next Year2.17%
Revenue Next 2Y3.48%
Revenue Next 3Y4.63%
Revenue Next 5Y5.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TSCO is valuated cheaply with a Price/Earnings ratio of 5.25.
TSCO's Price/Earnings ratio is rather cheap when compared to the industry. TSCO is cheaper than 100.00% of the companies in the same industry.
TSCO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
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 cheaper than 98.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TSCO to the average of the S&P500 Index (22.83), we can say TSCO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 4.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSCO indicates a rather cheap valuation: TSCO is cheaper than 96.69% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TSCO is valued cheaper than 86.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.78 | ||
| EV/EBITDA | 3.89 |
4.3 Compensation for Growth
TSCO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TSCO may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)0.28
EPS Next 2Y5.51%
EPS Next 3Y7.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, TSCO has a reasonable but not impressive dividend return.
The stock price of TSCO dropped by -80.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.43, TSCO pays a bit more dividend than its industry peers.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
The dividend of TSCO is nicely growing with an annual growth rate of 28.18%!
TSCO has paid a dividend for at least 10 years, which is a reliable track record.
TSCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)28.18%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
41.93% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
The dividend of TSCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.93%
EPS Next 2Y5.51%
EPS Next 3Y7.3%
TRACTOR SUPPLY COMPANY
NASDAQ:TSCO (12/20/2024, 8:00:01 PM)
After market: 53.5 -0.42 (-0.78%)53.92
-210.11 (-79.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner Change1.33%
Ins Owners0.27%
Ins Owner Change-0.93%
Market Cap5.76B
Analysts72.5
Price TargetN/A
Short Float %5.35%
Short Ratio5.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Dividend Growth(5Y)28.18%
DP41.93%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-1.85%
Max EPS beat(2)-1.81%
EPS beat(4)2
Avg EPS beat(4)0.4%
Min EPS beat(4)-1.85%
Max EPS beat(4)4.51%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)0.63%
EPS beat(16)9
Avg EPS beat(16)5.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-2%
Revenue beat(8)1
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)7
Avg Revenue beat(16)0.04%
PT rev (1m)1.77%
PT rev (3m)5.79%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.25 | ||
| Fwd PE | 4.8 | ||
| P/S | 0.39 | ||
| P/FCF | 10.78 | ||
| P/OCF | 4.43 | ||
| P/B | 2.52 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 3.89 |
EPS(TTM)10.28
EY19.07%
EPS(NY)11.23
Fwd EY20.83%
FCF(TTM)5
FCFY9.28%
OCF(TTM)12.17
OCFY22.56%
SpS138.24
BVpS21.42
TBVpS18.9
PEG (NY)1.35
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROCE | 19.99% | ||
| ROIC | 15.47% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 16.48% | ||
| OM | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% | ||
| FCFM | 3.62% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.54%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.4%
ROICexc(3y)19.02%
ROICexc(5y)18.48%
ROICexgc(3y)19.63%
ROICexgc(5y)19%
ROCE(3y)22.49%
ROCE(5y)21.19%
ROICexcg growth 3Y-5.1%
ROICexcg growth 5Y-8.45%
ROICexc growth 3Y-5.97%
ROICexc growth 5Y-8.07%
OM growth 3Y0.41%
OM growth 5Y2.74%
PM growth 3Y2.55%
PM growth 5Y2.5%
GM growth 3Y0.46%
GM growth 5Y1%
F-Score6
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 177.81% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 23.27 | ||
| Cash Conversion | 67.92% | ||
| Profit Quality | 48.04% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 3.59 |
F-Score6
WACC9.65%
ROIC/WACC1.6
Cap/Depr(3y)216.6%
Cap/Depr(5y)179.24%
Cap/Sales(3y)5.19%
Cap/Sales(5y)4.19%
Profit Quality(3y)52.39%
Profit Quality(5y)81.97%
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y13.67%
EPS 5Y18.49%
EPS Q2Q%-3.86%
EPS Next Y3.88%
EPS Next 2Y5.51%
EPS Next 3Y7.3%
EPS Next 5Y9.25%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Sales Q2Q%1.65%
Revenue Next Year2.17%
Revenue Next 2Y3.48%
Revenue Next 3Y4.63%
Revenue Next 5Y5.89%
EBIT growth 1Y-1.36%
EBIT growth 3Y11.53%
EBIT growth 5Y16.07%
EBIT Next Year30.78%
EBIT Next 3Y14.85%
EBIT Next 5Y11.76%
FCF growth 1Y172.73%
FCF growth 3Y-19.22%
FCF growth 5Y6.88%
OCF growth 1Y45.52%
OCF growth 3Y-1.47%
OCF growth 5Y13.95%