TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
USA - NASDAQ:TSCO - US8923561067 - Common Stock
53.68 USD
-1.74 (-3.14%)
53.05 USD
-0.63 (-1.17%)
Overall TSCO gets a fundamental rating of 6 out of 10. We evaluated TSCO against 122 industry peers in the Specialty Retail industry. TSCO gets an excellent profitability rating and is at the same time showing great financial health properties. TSCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TSCO had positive earnings in the past year.
TSCO had a positive operating cash flow in the past year.
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
TSCO has a Return On Assets of 10.16%. This is amongst the best in the industry. TSCO outperforms 84.43% of its industry peers.
Looking at the Return On Equity, with a value of 42.95%, TSCO belongs to the top of the industry, outperforming 94.26% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.30%, TSCO belongs to the best of the industry, outperforming 83.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 11.81%.
| 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
TSCO has a Profit Margin of 7.18%. This is amongst the best in the industry. TSCO outperforms 82.79% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
Looking at the Operating Margin, with a value of 9.66%, TSCO belongs to the top of the industry, outperforming 81.97% of the companies in the same industry.
In the last couple of years the Operating Margin of TSCO has grown nicely.
TSCO's Gross Margin of 36.46% is in line compared to the rest of the industry. TSCO outperforms 51.64% of its industry peers.
In the last couple of years the Gross Margin of TSCO has remained more or less at the same level.
| 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 well above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for TSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.97 indicates that TSCO is not in any danger for bankruptcy at the moment.
TSCO has a better Altman-Z score (4.97) than 86.89% 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.
The Debt to FCF ratio of TSCO (1.87) is better than 77.05% of its industry peers.
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 | 4.97 |
ROIC/WACC1.57
WACC9.11%
2.3 Liquidity
TSCO has a Current Ratio of 1.30. This is a normal value and indicates that TSCO is financially healthy and should not expect problems in meeting its short term obligations.
TSCO has a Current ratio (1.30) which is comparable to the rest of the 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: 93.44% 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
The Earnings Per Share has been growing slightly by 1.17% 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 16.96% on average per year.
TSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
TSCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.25% yearly.
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
Based on estimates for the next years, TSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.44% on average per year.
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 Y5.4%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
EPS Next 5Y9.44%
Revenue Next Year5.15%
Revenue Next 2Y5.84%
Revenue Next 3Y6.18%
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.
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
With a Price/Earnings ratio of 25.81, TSCO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.56.
TSCO is valuated rather expensively with a Price/Forward Earnings ratio of 22.54.
TSCO's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, TSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 22.54 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO indicates a somewhat cheap valuation: TSCO is cheaper than 63.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.87 | ||
| EV/EBITDA | 15.22 |
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.
TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.78
PEG (5Y)1.52
EPS Next 2Y8.06%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
TSCO's Dividend Yield is a higher than the industry average which is at 5.49.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
TSCO has paid a dividend for at least 10 years, which is 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
43.76% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
DP43.76%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
53.68
-1.74 (-3.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.6%
Inst Owner Change-2.77%
Ins Owners0.27%
Ins Owner Change9.28%
Market Cap28.45B
Revenue(TTM)15.40B
Net Income(TTM)1.11B
Analysts75.9
Price Target64.34 (19.86%)
Short Float %6.06%
Short Ratio6.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.76%
Div Incr Years14
Div Non Decr Years14
Ex-Date
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)2.98%
PT rev (3m)3.36%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-0.47%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.81 | ||
| Fwd PE | 22.54 | ||
| P/S | 1.85 | ||
| P/FCF | 29.87 | ||
| P/OCF | 15.57 | ||
| P/B | 11.06 | ||
| P/tB | 13.09 | ||
| EV/EBITDA | 15.22 |
EPS(TTM)2.08
EY3.87%
EPS(NY)2.38
Fwd EY4.44%
FCF(TTM)1.8
FCFY3.35%
OCF(TTM)3.45
OCFY6.42%
SpS29.06
BVpS4.86
TBVpS4.1
PEG (NY)4.78
PEG (5Y)1.52
Graham Number15.07
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 | 4.97 |
F-Score6
WACC9.11%
ROIC/WACC1.57
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 Y5.4%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
EPS Next 5Y9.44%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
Revenue Next Year5.15%
Revenue Next 2Y5.84%
Revenue Next 3Y6.18%
Revenue Next 5Y6.74%
EBIT growth 1Y0.31%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year36.18%
EBIT Next 3Y16.92%
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 ChartMill fundamental rating of TRACTOR SUPPLY COMPANY (TSCO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSCO.
What is the valuation status for TSCO stock?
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.
What is the financial health of TRACTOR SUPPLY COMPANY (TSCO) stock?
The financial health rating of TRACTOR SUPPLY COMPANY (TSCO) is 8 / 10.
Is the dividend of TRACTOR SUPPLY COMPANY sustainable?
The dividend rating of TRACTOR SUPPLY COMPANY (TSCO) is 5 / 10 and the dividend payout ratio is 43.76%.