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TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis

NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD

56.37  -1.37 (-2.37%)

After market: 56.2 -0.17 (-0.3%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 120 industry peers in the Specialty Retail industry. While TSCO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TSCO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

TSCO had positive earnings in the past year.
In the past year TSCO had a positive cash flow from operations.
Each year in the past 5 years TSCO has been profitable.
TSCO had a positive operating cash flow in each of the past 5 years.
TSCO Yearly Net Income VS EBIT VS OCF VS FCFTSCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

1.2 Ratios

TSCO has a better Return On Assets (11.23%) than 87.18% of its industry peers.
TSCO has a Return On Equity of 48.51%. This is amongst the best in the industry. TSCO outperforms 93.16% of its industry peers.
The Return On Invested Capital of TSCO (15.22%) is better than 83.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 12.30%.
Industry RankSector Rank
ROA 11.23%
ROE 48.51%
ROIC 15.22%
ROA(3y)12.04%
ROA(5y)11.91%
ROE(3y)51.11%
ROE(5y)48.41%
ROIC(3y)16.6%
ROIC(5y)16.64%
TSCO Yearly ROA, ROE, ROICTSCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

Looking at the Profit Margin, with a value of 7.40%, TSCO belongs to the top of the industry, outperforming 85.47% of the companies in the same industry.
TSCO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 9.86%, TSCO belongs to the best of the industry, outperforming 83.76% of the companies in the same industry.
TSCO's Operating Margin has improved in the last couple of years.
The Gross Margin of TSCO (36.26%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TSCO has remained more or less at the same level.
Industry RankSector Rank
OM 9.86%
PM (TTM) 7.4%
GM 36.26%
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%
TSCO Yearly Profit, Operating, Gross MarginsTSCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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5

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.
Compared to 5 years ago, TSCO has more shares outstanding
Compared to 1 year ago, TSCO has an improved debt to assets ratio.
TSCO Yearly Shares OutstandingTSCO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
TSCO Yearly Total Debt VS Total AssetsTSCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

TSCO has an Altman-Z score of 5.58. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TSCO (5.58) is better than 90.60% of its industry peers.
The Debt to FCF ratio of TSCO is 2.93, which is a good value as it means it would take TSCO, 2.93 years of fcf income to pay off all of its debts.
TSCO has a better Debt to FCF ratio (2.93) than 70.94% of its industry peers.
TSCO has a Debt/Equity ratio of 0.82. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
TSCO has a Debt to Equity ratio of 0.82. This is comparable to the rest of the industry: TSCO outperforms 43.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 2.93
Altman-Z 5.58
ROIC/WACC1.49
WACC10.18%
TSCO Yearly LT Debt VS Equity VS FCFTSCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

TSCO has a Current Ratio of 1.43. 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 (1.43) which is comparable to the rest of the industry.
A Quick Ratio of 0.20 indicates that TSCO may have some problems paying its short term obligations.
With a Quick ratio value of 0.20, TSCO is not doing good in the industry: 87.18% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.43
Quick Ratio 0.2
TSCO Yearly Current Assets VS Current LiabilitesTSCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

3. Growth

3.1 Past

TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.09%.
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 2.25%.
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)1.09%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%3.11%

3.2 Future

The Earnings Per Share is expected to grow by 10.57% 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 6.98% on average per year.
EPS Next Y8.49%
EPS Next 2Y9.75%
EPS Next 3Y10.19%
EPS Next 5Y10.57%
Revenue Next Year5.61%
Revenue Next 2Y6.22%
Revenue Next 3Y6.57%
Revenue Next 5Y6.98%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TSCO Yearly Revenue VS EstimatesTSCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B 25B
TSCO Yearly EPS VS EstimatesTSCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 27.63, the valuation of TSCO can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TSCO.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 25.47 indicates a quite expensive valuation of TSCO.
TSCO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TSCO is around the same levels.
Industry RankSector Rank
PE 27.63
Fwd PE 25.47
TSCO Price Earnings VS Forward Price EarningsTSCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 47.29
EV/EBITDA 16.95
TSCO Per share dataTSCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

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)3.26
PEG (5Y)1.63
EPS Next 2Y9.75%
EPS Next 3Y10.19%

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5

5. Dividend

5.1 Amount

TSCO has a Yearly Dividend Yield of 1.54%.
TSCO's Dividend Yield is a higher than the industry average which is at 4.01.
Compared to the average S&P500 Dividend Yield of 2.29, TSCO is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.54%

5.2 History

The dividend of TSCO decreases each year by -8.29%.
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)-8.29%
Div Incr Years14
Div Non Decr Years14
TSCO Yearly Dividends per shareTSCO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

TSCO pays out 42.91% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP42.91%
EPS Next 2Y9.75%
EPS Next 3Y10.19%
TSCO Yearly Income VS Free CF VS DividendTSCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
TSCO Dividend Payout.TSCO Dividend Payout, showing the Payout Ratio.TSCO Dividend Payout.PayoutRetained Earnings

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TRACTOR SUPPLY COMPANY

NASDAQ:TSCO (2/21/2025, 8:00:01 PM)

After market: 56.2 -0.17 (-0.3%)

56.37

-1.37 (-2.37%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)01-30 2025-01-30/bmo
Earnings (Next)04-23 2025-04-23/bmo
Inst Owners96.16%
Inst Owner Change396.48%
Ins Owners0.27%
Ins Owner Change-1.97%
Market Cap30.11B
Analysts72.68
Price Target59.21 (5.04%)
Short Float %6.3%
Short Ratio7.75
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Yearly Dividend0.88
Dividend Growth(5Y)-8.29%
DP42.91%
Div Incr Years14
Div Non Decr Years14
Ex-Date02-26 2025-02-26 (0.23)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.5%
Min EPS beat(2)-5.19%
Max EPS beat(2)-1.81%
EPS beat(4)1
Avg EPS beat(4)-1.09%
Min EPS beat(4)-5.19%
Max EPS beat(4)4.51%
EPS beat(8)2
Avg EPS beat(8)-1.71%
EPS beat(12)4
Avg EPS beat(12)0.01%
EPS beat(16)8
Avg EPS beat(16)5.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.35%
Min Revenue beat(2)-2.44%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-2%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)6
Avg Revenue beat(16)-0.33%
PT rev (1m)0.42%
PT rev (3m)-79.49%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-81.15%
EPS NY rev (1m)-1.59%
EPS NY rev (3m)-80.51%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)-1.25%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.34%
Valuation
Industry RankSector Rank
PE 27.63
Fwd PE 25.47
P/S 2.02
P/FCF 47.29
P/OCF 21.19
P/B 13.26
P/tB 15.05
EV/EBITDA 16.95
EPS(TTM)2.04
EY3.62%
EPS(NY)2.21
Fwd EY3.93%
FCF(TTM)1.19
FCFY2.11%
OCF(TTM)2.66
OCFY4.72%
SpS27.86
BVpS4.25
TBVpS3.75
PEG (NY)3.26
PEG (5Y)1.63
Profitability
Industry RankSector Rank
ROA 11.23%
ROE 48.51%
ROCE 19.6%
ROIC 15.22%
ROICexc 15.74%
ROICexgc 16.35%
OM 9.86%
PM (TTM) 7.4%
GM 36.26%
FCFM 4.28%
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%
ROICexcg growth 3Y-8.38%
ROICexcg 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 Turnover1.52
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 2.93
Debt/EBITDA 0.97
Cap/Depr 175.34%
Cap/Sales 5.27%
Interest Coverage 22.28
Cash Conversion 74.21%
Profit Quality 57.82%
Current Ratio 1.43
Quick Ratio 0.2
Altman-Z 5.58
F-Score6
WACC10.18%
ROIC/WACC1.49
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)1.09%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-3.51%
EPS Next Y8.49%
EPS Next 2Y9.75%
EPS Next 3Y10.19%
EPS Next 5Y10.57%
Revenue 1Y (TTM)2.25%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%3.11%
Revenue Next Year5.61%
Revenue Next 2Y6.22%
Revenue Next 3Y6.57%
Revenue Next 5Y6.98%
EBIT growth 1Y-0.77%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year38.5%
EBIT Next 3Y17.47%
EBIT Next 5Y13.43%
FCF growth 1Y9.76%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y6.51%
OCF growth 3Y7.66%
OCF growth 5Y11.85%