TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock
Overall TSCO gets a fundamental rating of 5 out of 10. We evaluated TSCO against 119 industry peers in the Specialty Retail industry. TSCO scores excellent on profitability, but there are some minor concerns on its financial health. TSCO is valied quite expensively at the moment, while it does show a decent 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.
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 (11.39%) is better than 87.07% of its industry peers.
The Return On Equity of TSCO (48.62%) is better than 93.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.47%, TSCO belongs to the top of the industry, outperforming 83.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSCO is significantly above the industry average of 12.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROIC | 15.47% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.53%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.41%
1.3 Margins
The Profit Margin of TSCO (7.53%) is better than 86.21% of its industry peers.
TSCO's Profit Margin has improved in the last couple of years.
The Operating Margin of TSCO (10.04%) is better than 84.48% of its industry peers.
In the last couple of years the Operating Margin of TSCO has grown nicely.
With a Gross Margin value of 36.29%, TSCO perfoms like the industry average, outperforming 50.86% of the companies in the same industry.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% |
OM growth 3Y0.41%
OM growth 5Y2.75%
PM growth 3Y2.56%
PM growth 5Y2.48%
GM growth 3Y0.47%
GM growth 5Y1.01%
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.
Compared to 1 year ago, TSCO has more shares outstanding
Compared to 5 years ago, TSCO has more shares outstanding
The debt/assets ratio for TSCO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.43 indicates that TSCO is not in any danger for bankruptcy at the moment.
TSCO has a Altman-Z score of 5.43. This is amongst the best in the industry. TSCO outperforms 86.21% 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's Debt to FCF ratio of 3.49 is fine compared to the rest of the industry. TSCO outperforms 69.83% 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's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. TSCO outperforms 43.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 5.43 |
ROIC/WACC1.53
WACC10.09%
2.3 Liquidity
TSCO has a Current Ratio of 1.48. 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 of 1.48. This is comparable to the rest of the industry: TSCO outperforms 58.62% of its industry peers.
A Quick Ratio of 0.17 indicates that TSCO may have some problems paying its short term obligations.
TSCO has a worse Quick ratio (0.17) than 90.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.39%.
The Earnings Per Share has been growing by 18.49% on average over the past years. This is quite good.
Looking at the last year, TSCO shows a decrease in Revenue. The Revenue has decreased by -0.89% in the last year.
Measured over the past years, TSCO shows a quite strong growth in Revenue. The Revenue has been growing by 12.97% on average per year.
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
Based on estimates for the next years, TSCO will show a very strong growth in Earnings Per Share. The EPS will grow by 50.73% on average per year.
TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y3.92%
EPS Next 2Y5.56%
EPS Next 3Y7.24%
EPS Next 5Y50.73%
Revenue Next Year2.19%
Revenue Next 2Y3.54%
Revenue Next 3Y4.67%
Revenue Next 5Y5.89%
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 accelerating.
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 27.61 indicates a quite expensive valuation of TSCO.
TSCO's Price/Earnings is on the same level as the industry average.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 25.29 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 24.44. TSCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 25.29 |
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 | 56.84 | ||
| EV/EBITDA | 15.85 |
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.
TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.04
PEG (5Y)1.49
EPS Next 2Y5.56%
EPS Next 3Y7.24%
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.
TSCO's Dividend Yield is a higher than the industry average which is at 3.27.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of TSCO has a limited annual growth rate of 3.04%.
TSCO has been paying a dividend for at least 10 years, so it has 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)3.04%
Div Incr Years14
Div Non Decr Years14
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 earnings are growing more, so the dividend growth is sustainable.
DP41.93%
EPS Next 2Y5.56%
EPS Next 3Y7.24%
TRACTOR SUPPLY COMPANY
NASDAQ:TSCO (1/21/2025, 8:00:02 PM)
After market: 57.02 +0.14 (+0.25%)56.88
+3.22 (+6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.16%
Inst Owner Change2.87%
Ins Owners0.27%
Ins Owner Change-0.82%
Market Cap30.39B
Analysts72.5
Price Target58.96 (3.66%)
Short Float %N/A
Short Ratio15.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.38
Dividend Growth(5Y)3.04%
DP41.93%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-1.85%
Max EPS beat(2)-1.81%
EPS beat(4)2
Avg EPS beat(4)0.4%
Min EPS beat(4)-1.85%
Max EPS beat(4)4.51%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)0.63%
EPS beat(16)9
Avg EPS beat(16)5.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.44%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)-2%
Revenue beat(8)1
Avg Revenue beat(8)-2.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)7
Avg Revenue beat(16)0.04%
PT rev (1m)-79.93%
PT rev (3m)-78.86%
EPS NQ rev (1m)-79.96%
EPS NQ rev (3m)-80.88%
EPS NY rev (1m)-79.99%
EPS NY rev (3m)-80.01%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 25.29 | ||
| P/S | 2.06 | ||
| P/FCF | 56.84 | ||
| P/OCF | 23.38 | ||
| P/B | 13.28 | ||
| P/tB | 15.05 | ||
| EV/EBITDA | 15.85 |
EPS(TTM)2.06
EY3.62%
EPS(NY)2.25
Fwd EY3.95%
FCF(TTM)1
FCFY1.76%
OCF(TTM)2.43
OCFY4.28%
SpS27.65
BVpS4.28
TBVpS3.78
PEG (NY)7.04
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 48.62% | ||
| ROCE | 19.99% | ||
| ROIC | 15.47% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 16.48% | ||
| OM | 10.04% | ||
| PM (TTM) | 7.53% | ||
| GM | 36.29% | ||
| FCFM | 3.62% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.53%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.41%
ROICexc(3y)19.02%
ROICexc(5y)18.48%
ROICexgc(3y)19.63%
ROICexgc(5y)19%
ROCE(3y)22.49%
ROCE(5y)21.19%
ROICexcg growth 3Y-5.1%
ROICexcg growth 5Y-8.45%
ROICexc growth 3Y-5.97%
ROICexc growth 5Y-8.07%
OM growth 3Y0.41%
OM growth 5Y2.75%
PM growth 3Y2.56%
PM growth 5Y2.48%
GM growth 3Y0.47%
GM growth 5Y1.01%
F-Score6
Asset Turnover1.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 0.97 | ||
| Cap/Depr | 177.81% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 23.27 | ||
| Cash Conversion | 67.92% | ||
| Profit Quality | 48.04% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 5.43 |
F-Score6
WACC10.09%
ROIC/WACC1.53
Cap/Depr(3y)216.6%
Cap/Depr(5y)179.24%
Cap/Sales(3y)5.19%
Cap/Sales(5y)4.19%
Profit Quality(3y)52.39%
Profit Quality(5y)81.96%
High Growth Momentum
Growth
EPS 1Y (TTM)0.39%
EPS 3Y13.67%
EPS 5Y18.49%
EPS Q2Q%-3.86%
EPS Next Y3.92%
EPS Next 2Y5.56%
EPS Next 3Y7.24%
EPS Next 5Y50.73%
Revenue 1Y (TTM)-0.89%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Sales Q2Q%1.65%
Revenue Next Year2.19%
Revenue Next 2Y3.54%
Revenue Next 3Y4.67%
Revenue Next 5Y5.89%
EBIT growth 1Y-1.36%
EBIT growth 3Y11.53%
EBIT growth 5Y16.08%
EBIT Next Year30.78%
EBIT Next 3Y14.72%
EBIT Next 5Y11.76%
FCF growth 1Y172.73%
FCF growth 3Y-19.22%
FCF growth 5Y6.88%
OCF growth 1Y45.52%
OCF growth 3Y-1.47%
OCF growth 5Y13.95%