TRACTOR SUPPLY COMPANY (TSCO)
US8923561067 - Common Stock
Taking everything into account, TSCO scores 5 out of 10 in our fundamental rating. TSCO was compared to 123 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.
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.
TSCO had positive earnings in each of the past 5 years.
In the past 5 years TSCO always reported a positive cash flow from operatings.
1.2 Ratios
TSCO has a better Return On Assets (11.39%) than 86.78% of its industry peers.
Looking at the Return On Equity, with a value of 48.62%, TSCO belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.47%, TSCO belongs to the best of the industry, outperforming 84.30% of the companies in the same industry.
TSCO had an Average Return On Invested Capital over the past 3 years of 17.41%. This is significantly above the industry average of 12.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROIC | 15.47% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.54%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.4%
1.3 Margins
The Profit Margin of TSCO (7.53%) is better than 85.12% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
The Operating Margin of TSCO (10.04%) is better than 84.30% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin of 36.29%. 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 | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% |
OM growth 3Y0.41%
OM growth 5Y2.74%
PM growth 3Y2.55%
PM growth 5Y2.5%
GM growth 3Y0.46%
GM growth 5Y1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TSCO is creating value.
TSCO has less shares outstanding than it did 1 year ago.
TSCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TSCO is higher compared to a year ago.
2.2 Solvency
TSCO has an Altman-Z score of 5.44. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
TSCO has a better Altman-Z score (5.44) than 88.43% of its industry peers.
TSCO has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as TSCO would need 3.49 years to pay back of all of its debts.
TSCO has a better Debt to FCF ratio (3.49) than 67.77% of its industry peers.
TSCO has a Debt/Equity ratio of 0.81. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
TSCO has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: TSCO outperforms 44.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.64
WACC9.42%
2.3 Liquidity
A Current Ratio of 1.48 indicates that TSCO should not have too much problems paying its short term obligations.
TSCO has a Current ratio of 1.48. This is comparable to the rest of the industry: TSCO outperforms 57.85% of its industry peers.
TSCO has a Quick Ratio of 1.48. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.17, TSCO is doing worse than 89.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.39% over the past year.
The Earnings Per Share has been growing by 18.49% on average over the past years. This is quite good.
TSCO shows a decrease in Revenue. In the last year, the revenue decreased by -0.89%.
The Revenue has been growing by 12.97% on average over the past years. This is quite good.
EPS 1Y (TTM)0.39%
EPS 3Y13.67%
EPS 5Y18.49%
EPS Q2Q%-3.86%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Sales Q2Q%1.65%
3.2 Future
TSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.94% yearly.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y3.88%
EPS Next 2Y6.07%
EPS Next 3Y7.61%
EPS Next 5Y8.94%
Revenue Next Year2.21%
Revenue Next 2Y3.7%
Revenue Next 3Y4.68%
Revenue Next 5Y5.84%
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.
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
A Price/Earnings ratio of 26.62 indicates a quite expensive valuation of TSCO.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than 61.16% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, TSCO is valued at the same level.
With a Price/Forward Earnings ratio of 24.10, TSCO is valued on the expensive side.
TSCO's Price/Forward Earnings ratio is in line with the industry average.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
TSCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.69 | ||
| EV/EBITDA | 15.95 |
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)6.86
PEG (5Y)1.44
EPS Next 2Y6.07%
EPS Next 3Y7.61%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 3.09, TSCO pays a bit more dividend than its industry peers.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of TSCO grows each year by 28.18%, which is quite nice.
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)28.18%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
41.93% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
The dividend of TSCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.93%
EPS Next 2Y6.07%
EPS Next 3Y7.61%
TRACTOR SUPPLY COMPANY
NASDAQ:TSCO (11/21/2024, 8:00:01 PM)
After market: 273.63 0 (0%)273.63
+3.63 (+1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap29.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)6.86
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y13.67%
EPS 5Y
EPS Q2Q%
EPS Next Y3.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y11.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y