52.92 USD
+0.28 (+0.53%)
52.84 USD
-0.08 (-0.15%)
We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 123 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TSCO a very profitable company, without any liquidiy or solvency issues. TSCO has a correct valuation and a medium growth rate.
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.
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
The Return On Assets of TSCO (10.16%) is better than 84.43% of its industry peers.
With an excellent Return On Equity value of 42.95%, TSCO belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.30%, TSCO belongs to the top 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 11.69%.
| 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 82.79% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
TSCO's Operating Margin of 9.66% is amongst the best of the industry. TSCO outperforms 81.97% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (36.46%) which 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 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.
TSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
TSCO has a better debt/assets ratio than last year.
2.2 Solvency
TSCO has an Altman-Z score of 4.93. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
TSCO's Altman-Z score of 4.93 is amongst the best of the industry. TSCO outperforms 88.52% 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.
With a decent Debt to FCF ratio value of 1.87, TSCO is doing good in the industry, outperforming 77.05% of the companies in the same industry.
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 48.36% 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 | 4.93 |
ROIC/WACC1.59
WACC9.01%
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.
With a Current ratio value of 1.30, TSCO perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
A Quick Ratio of 0.14 indicates that TSCO may have some problems paying its short term obligations.
TSCO has a worse Quick ratio (0.14) than 93.44% of its industry peers.
The current and quick ratio evaluation for TSCO is rather negative, while it does have 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.
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.
The Revenue is expected to grow by 6.74% on average over the next years.
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.
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
TSCO is valuated quite expensively with a Price/Earnings ratio of 25.44.
63.93% of the companies in the same industry are more expensive than TSCO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSCO to the average of the S&P500 Index (25.45), we can say TSCO is valued inline with the index average.
The Price/Forward Earnings ratio is 22.22, which indicates a rather expensive current valuation of TSCO.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
When comparing the Price/Forward Earnings ratio of TSCO to the average of the S&P500 Index (34.46), we can say TSCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.44 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
Based on the Price/Free Cash Flow ratio, TSCO is valued a bit cheaper than the industry average as 63.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.45 | ||
| EV/EBITDA | 14.94 |
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)4.71
PEG (5Y)1.5
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.
Compared to an average industry Dividend Yield of 6.07, TSCO pays a bit more dividend than its industry peers.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| 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%
52.92
+0.28 (+0.53%)
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 Cap28.04B
Revenue(TTM)15.40B
Net Income(TTM)1.11B
Analysts75.9
Price Target64.34 (21.58%)
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 | 25.44 | ||
| Fwd PE | 22.22 | ||
| P/S | 1.82 | ||
| P/FCF | 29.45 | ||
| P/OCF | 15.34 | ||
| P/B | 10.9 | ||
| P/tB | 12.9 | ||
| EV/EBITDA | 14.94 |
EPS(TTM)2.08
EY3.93%
EPS(NY)2.38
Fwd EY4.5%
FCF(TTM)1.8
FCFY3.4%
OCF(TTM)3.45
OCFY6.52%
SpS29.06
BVpS4.86
TBVpS4.1
PEG (NY)4.71
PEG (5Y)1.5
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 | 4.93 |
F-Score6
WACC9.01%
ROIC/WACC1.59
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%.