54.69 USD
+1.29 (+2.42%)
54.69 USD
0 (0%)
Overall TSCO gets a fundamental rating of 6 out of 10. We evaluated TSCO against 121 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 is not valued too expensively and it also shows a decent growth rate.
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.
- 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 85.95% of its industry peers.
- TSCO's Return On Equity of 42.95% is amongst the best of the industry. TSCO outperforms 92.56% of its industry peers.
- With an excellent Return On Invested Capital value of 14.30%, TSCO belongs to the best of the industry, outperforming 83.47% 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 12.37%.
| 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
- The Profit Margin of TSCO (7.18%) is better than 83.47% 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 82.64% of the companies in the same industry.
- TSCO's Operating Margin has improved in the last couple of years.
- TSCO has a Gross Margin of 36.46%. This is comparable to the rest of the industry: TSCO outperforms 50.41% 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 just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TSCO has less shares outstanding
- The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
- Compared to 1 year ago, TSCO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.95 indicates that TSCO is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.95, TSCO belongs to the top of the industry, outperforming 86.78% of the companies in the same industry.
- The Debt to FCF ratio of TSCO is 1.87, which is an excellent value as it means it would take TSCO, only 1.87 years of fcf income to pay off all of its debts.
- TSCO has a Debt to FCF ratio of 1.87. This is in the better half of the industry: TSCO outperforms 76.86% of its industry peers.
- A Debt/Equity ratio of 0.69 indicates that TSCO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.69, TSCO perfoms like the industry average, outperforming 49.59% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for TSCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.95 |
ROIC/WACC1.49
WACC9.61%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that TSCO should not have too much problems paying its short term obligations.
- TSCO's Current ratio of 1.30 is in line compared to the rest of the industry. TSCO outperforms 50.41% of its industry peers.
- A Quick Ratio of 0.14 indicates that TSCO may have some problems paying its short term obligations.
- TSCO's Quick ratio of 0.14 is on the low side compared to the rest of the industry. TSCO is outperformed by 93.39% of its industry peers.
- 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%.
- TSCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.96% yearly.
- TSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.26%.
- The Revenue has been growing by 12.25% on average over the past years. This is quite good.
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 9.72% on average over the next years. This is quite good.
- TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.77% yearly.
EPS Next Y5.39%
EPS Next 2Y8%
EPS Next 3Y9.09%
EPS Next 5Y9.72%
Revenue Next Year5.12%
Revenue Next 2Y5.82%
Revenue Next 3Y6.15%
Revenue Next 5Y6.77%
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
- The Price/Earnings ratio is 26.29, which means the current valuation is very expensive for TSCO.
- Compared to the rest of the industry, the Price/Earnings ratio of TSCO indicates a somewhat cheap valuation: TSCO is cheaper than 67.77% of the companies listed in the same industry.
- TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 22.98, TSCO is valued on the expensive side.
- 61.16% of the companies in the same industry are more expensive than TSCO, based on the Price/Forward Earnings ratio.
- TSCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 22.98 |
4.2 Price Multiples
- TSCO's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, TSCO is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.34 | ||
| EV/EBITDA | 15.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.88
PEG (5Y)1.55
EPS Next 2Y8%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
- TSCO has a Yearly Dividend Yield of 1.81%.
- Compared to an average industry Dividend Yield of 2.08, TSCO pays a bit more dividend than its industry peers.
- TSCO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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%
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.