50.01 USD
-0.35 (-0.69%)
50 USD
-0.01 (-0.02%)
Taking everything into account, TSCO scores 6 out of 10 in our fundamental rating. TSCO was compared to 123 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TSCO a very profitable company, without any liquidiy or solvency issues. TSCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TSCO was profitable.
In the past year TSCO had a positive cash flow from operations.
In the past 5 years TSCO has always been profitable.
TSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TSCO (10.16%) is better than 86.18% of its industry peers.
TSCO has a better Return On Equity (42.95%) than 92.68% of its industry peers.
TSCO's Return On Invested Capital of 14.30% is amongst the best of the industry. TSCO outperforms 83.74% of its industry peers.
TSCO had an Average Return On Invested Capital over the past 3 years of 16.60%. This is above the industry average of 12.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.16% | ||
| ROE | 42.95% | ||
| ROIC | 14.3% |
ROA(3y)12.04%
ROA(5y)11.91%
ROE(3y)51.11%
ROE(5y)48.41%
ROIC(3y)16.6%
ROIC(5y)16.64%
1.3 Margins
Looking at the Profit Margin, with a value of 7.18%, TSCO belongs to the top of the industry, outperforming 83.74% of the companies in the same industry.
TSCO's Profit Margin has improved in the last couple of years.
TSCO's Operating Margin of 9.66% is amongst the best of the industry. TSCO outperforms 82.93% of its industry peers.
In the last couple of years the Operating Margin of TSCO has grown nicely.
Looking at the Gross Margin, with a value of 36.46%, TSCO is in line with its industry, outperforming 49.59% of the companies in the same industry.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.66% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.46% |
OM growth 3Y-1.33%
OM growth 5Y2.07%
PM growth 3Y-1.88%
PM growth 5Y1.9%
GM growth 3Y1.02%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
TSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
The debt/assets ratio for TSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.82 indicates that TSCO is not in any danger for bankruptcy at the moment.
TSCO's Altman-Z score of 4.82 is amongst the best of the industry. TSCO outperforms 86.18% of its industry peers.
TSCO has a debt to FCF ratio of 1.87. This is a very positive value and a sign of high solvency as it would only need 1.87 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.87, TSCO is in the better half of the industry, outperforming 76.42% of the companies in the same industry.
TSCO has a Debt/Equity ratio of 0.69. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
The Debt to Equity ratio of TSCO (0.69) is comparable to the rest of the industry.
Although TSCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.52
WACC9.43%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TSCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, TSCO is in line with its industry, outperforming 48.78% of the companies in the same industry.
TSCO has a Quick Ratio of 1.30. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.14, TSCO is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
TSCO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.17%.
Measured over the past years, TSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.96% on average per year.
The Revenue has been growing slightly by 4.26% in the past year.
Measured over the past years, TSCO shows a quite strong growth in Revenue. The Revenue has been growing by 12.25% on average per year.
EPS 1Y (TTM)1.17%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%9.37%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
3.2 Future
The Earnings Per Share is expected to grow by 9.44% on average over the next years. This is quite good.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 6.74% on average per year.
EPS Next Y5.39%
EPS Next 2Y8%
EPS Next 3Y9.09%
EPS Next 5Y9.44%
Revenue Next Year5.14%
Revenue Next 2Y5.81%
Revenue Next 3Y6.15%
Revenue Next 5Y6.74%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.04, TSCO is valued on the expensive side.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. TSCO is around the same levels.
With a Price/Forward Earnings ratio of 21.02, TSCO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TSCO is valued a bit cheaper than 60.98% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, TSCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 21.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSCO is on the same level as its industry peers.
TSCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSCO is cheaper than 65.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.75 | ||
| EV/EBITDA | 14.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TSCO does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TSCO may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)1.42
EPS Next 2Y8%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.01, TSCO pays a bit more dividend than its industry peers.
TSCO's Dividend Yield is comparable with the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
TSCO has been paying a dividend for at least 10 years, so it has a reliable track record.
TSCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.25%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
TSCO pays out 43.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.76%
EPS Next 2Y8%
EPS Next 3Y9.09%
50.01
-0.35 (-0.69%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.67%
Inst Owner Change-3.31%
Ins Owners0.3%
Ins Owner Change6.69%
Market Cap26.43B
Revenue(TTM)15.40B
Net Income(TTM)1.11B
Analysts77.89
Price Target64.74 (29.45%)
Short Float %6.15%
Short Ratio6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.76%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.69%
Min EPS beat(2)-1.01%
Max EPS beat(2)-0.36%
EPS beat(4)0
Avg EPS beat(4)-3.98%
Min EPS beat(4)-9.37%
Max EPS beat(4)-0.36%
EPS beat(8)2
Avg EPS beat(8)-1.79%
EPS beat(12)3
Avg EPS beat(12)-1.91%
EPS beat(16)5
Avg EPS beat(16)-0.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.33%
Revenue beat(12)1
Avg Revenue beat(12)-2.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)0.35%
PT rev (3m)4.36%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.04 | ||
| Fwd PE | 21.02 | ||
| P/S | 1.72 | ||
| P/FCF | 27.75 | ||
| P/OCF | 14.46 | ||
| P/B | 10.27 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 14.19 |
EPS(TTM)2.08
EY4.16%
EPS(NY)2.38
Fwd EY4.76%
FCF(TTM)1.8
FCFY3.6%
OCF(TTM)3.46
OCFY6.92%
SpS29.14
BVpS4.87
TBVpS4.11
PEG (NY)4.46
PEG (5Y)1.42
Graham Number15.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.16% | ||
| ROE | 42.95% | ||
| ROCE | 18.43% | ||
| ROIC | 14.3% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 15.42% | ||
| OM | 9.66% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.46% | ||
| FCFM | 6.18% |
ROA(3y)12.04%
ROA(5y)11.91%
ROE(3y)51.11%
ROE(5y)48.41%
ROIC(3y)16.6%
ROIC(5y)16.64%
ROICexc(3y)17.31%
ROICexc(5y)18.77%
ROICexgc(3y)18.04%
ROICexgc(5y)19.31%
ROCE(3y)21.39%
ROCE(5y)21.43%
ROICexgc growth 3Y-8.38%
ROICexgc growth 5Y1.67%
ROICexc growth 3Y-9.19%
ROICexc growth 5Y1.55%
OM growth 3Y-1.33%
OM growth 5Y2.07%
PM growth 3Y-1.88%
PM growth 5Y1.9%
GM growth 3Y1.02%
GM growth 5Y1.07%
F-Score6
Asset Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 179.98% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 21.12 | ||
| Cash Conversion | 92.57% | ||
| Profit Quality | 86.18% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 4.82 |
F-Score6
WACC9.43%
ROIC/WACC1.52
Cap/Depr(3y)197.52%
Cap/Depr(5y)192.11%
Cap/Sales(3y)5.3%
Cap/Sales(5y)4.72%
Profit Quality(3y)54.61%
Profit Quality(5y)72.39%
High Growth Momentum
Growth
EPS 1Y (TTM)1.17%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%9.37%
EPS Next Y5.39%
EPS Next 2Y8%
EPS Next 3Y9.09%
EPS Next 5Y9.44%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
Revenue Next Year5.14%
Revenue Next 2Y5.81%
Revenue Next 3Y6.15%
Revenue Next 5Y6.74%
EBIT growth 1Y0.31%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year35.98%
EBIT Next 3Y16.94%
EBIT Next 5Y13.27%
FCF growth 1Y16.19%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y9.53%
OCF growth 3Y7.66%
OCF growth 5Y11.85%
TRACTOR SUPPLY COMPANY / TSCO FAQ
What is the fundamental rating for TSCO stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSCO.
Can you provide the valuation status for TRACTOR SUPPLY COMPANY?
ChartMill assigns a valuation rating of 4 / 10 to TRACTOR SUPPLY COMPANY (TSCO). This can be considered as Fairly Valued.
How profitable is TRACTOR SUPPLY COMPANY (TSCO) stock?
TRACTOR SUPPLY COMPANY (TSCO) has a profitability rating of 8 / 10.
Can you provide the financial health for TSCO stock?
The financial health rating of TRACTOR SUPPLY COMPANY (TSCO) is 7 / 10.
What is the expected EPS growth for TRACTOR SUPPLY COMPANY (TSCO) stock?
The Earnings per Share (EPS) of TRACTOR SUPPLY COMPANY (TSCO) is expected to grow by 5.39% in the next year.