54.435 USD
+1.04 (+1.94%)
We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 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.
- Each year in the past 5 years TSCO has been profitable.
- In the past 5 years TSCO always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.16%, TSCO belongs to the top of the industry, outperforming 85.95% of the companies in the same industry.
- With an excellent Return On Equity value of 42.95%, TSCO belongs to the best of the industry, outperforming 92.56% of the companies in the same industry.
- The Return On Invested Capital of TSCO (14.30%) is better than 83.47% 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 12.37%.
| 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
- TSCO's Profit Margin of 7.18% is amongst the best of the industry. TSCO outperforms 83.47% of its industry peers.
- In the last couple of years the Profit Margin of TSCO has grown nicely.
- With an excellent Operating Margin value of 9.66%, TSCO belongs to the best 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.
- With a Gross Margin value of 36.46%, TSCO perfoms like the industry average, outperforming 50.41% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSCO is creating some 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
- TSCO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.95 indicates that TSCO is not in any danger for bankruptcy at the moment.
- TSCO's Altman-Z score of 4.95 is amongst the best of the industry. TSCO outperforms 86.78% of its industry peers.
- 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.
- The Debt to FCF ratio of TSCO (1.87) is better than 76.86% 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.
- Looking at the Debt to Equity ratio, with a value of 0.69, TSCO is in line with its industry, outperforming 49.59% of the companies in the same 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 | 4.95 |
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 has a Current ratio (1.30) which is in line with its industry peers.
- 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.
- 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%.
- The Earnings Per Share has been growing by 16.96% on average over the past years. This is quite good.
- Looking at the last year, TSCO shows a small growth in Revenue. The Revenue has grown by 4.26% in the last 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 9.72% 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 6.77% on average per year.
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
- 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.
- 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
- A Price/Earnings ratio of 26.17 indicates a quite expensive valuation of TSCO.
- TSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. TSCO is cheaper than 67.77% of the companies in the same industry.
- TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- With a Price/Forward Earnings ratio of 22.88, TSCO is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, TSCO is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, TSCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.17 | ||
| Fwd PE | 22.88 |
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 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| 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.
- The excellent profitability rating of TSCO may justify a higher PE ratio.
PEG (NY)4.86
PEG (5Y)1.54
EPS Next 2Y8%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
- TSCO has a Yearly Dividend Yield of 1.81%.
- TSCO's Dividend Yield is a higher than the industry average which is at 2.08.
- 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 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)-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.