TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
USA - NASDAQ:TSCO - US8923561067 - Common Stock
59.17 USD
+0.18 (+0.31%)
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 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 decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 10.30%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
Looking at the Return On Equity, with a value of 43.66%, TSCO belongs to the top of the industry, outperforming 92.56% of the companies in the same industry.
TSCO's Return On Invested Capital of 14.63% is amongst the best of the industry. TSCO outperforms 84.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 43.66% | ||
| ROIC | 14.63% |
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 82.64% 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 9.70%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (36.41%) which is in line with its industry peers.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.41% |
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.
TSCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSCO has an improved debt to assets ratio.
2.2 Solvency
TSCO has an Altman-Z score of 5.27. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.27, TSCO belongs to the best of the industry, outperforming 85.95% of the companies in the same industry.
The Debt to FCF ratio of TSCO is 2.08, which is a good value as it means it would take TSCO, 2.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.08, TSCO is in the better half of the industry, outperforming 76.03% of the companies in the same industry.
TSCO has a Debt/Equity ratio of 0.68. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, TSCO is in line with its industry, outperforming 45.45% 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 | 0.68 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 5.27 |
ROIC/WACC1.54
WACC9.48%
2.3 Liquidity
TSCO has a Current Ratio of 1.28. 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 1.28, TSCO perfoms like the industry average, outperforming 47.93% of the companies in the same industry.
TSCO has a Quick Ratio of 1.28. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TSCO (0.16) is worse than 90.91% 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 | 1.28 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
TSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.74%.
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 2.96%.
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)-1.74%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%3.05%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%4.55%
3.2 Future
The Earnings Per Share is expected to grow by 9.81% 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 6.97% yearly.
EPS Next Y5.14%
EPS Next 2Y7.95%
EPS Next 3Y8.96%
EPS Next 5Y9.81%
Revenue Next Year5.22%
Revenue Next 2Y5.84%
Revenue Next 3Y6.26%
Revenue Next 5Y6.97%
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
A Price/Earnings ratio of 29.00 indicates a quite expensive valuation of TSCO.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 24.89, TSCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSCO is on the same level as its industry peers.
TSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 24.89 |
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 61.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.23 | ||
| EV/EBITDA | 16.83 |
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)5.64
PEG (5Y)1.71
EPS Next 2Y7.95%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.53%.
TSCO's Dividend Yield is a higher than the industry average which is at 5.21.
Compared to the average S&P500 Dividend Yield of 2.38, TSCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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
44.10% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
DP44.1%
EPS Next 2Y7.95%
EPS Next 3Y8.96%
NASDAQ:TSCO (9/17/2025, 3:53:08 PM)
59.17
+0.18 (+0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0.07%
Ins Owners0.27%
Ins Owner Change-0.11%
Market Cap31.36B
Analysts74.36
Price Target62.03 (4.83%)
Short Float %7.76%
Short Ratio8.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP44.1%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.19%
Min EPS beat(2)-9.37%
Max EPS beat(2)-1.01%
EPS beat(4)0
Avg EPS beat(4)-4.35%
Min EPS beat(4)-9.37%
Max EPS beat(4)-1.01%
EPS beat(8)2
Avg EPS beat(8)-1.79%
EPS beat(12)3
Avg EPS beat(12)-1.94%
EPS beat(16)6
Avg EPS beat(16)0.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.52%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)4
Avg Revenue beat(16)-1.48%
PT rev (1m)-0.35%
PT rev (3m)12.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.03%
EPS NY rev (1m)1.03%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 24.89 | ||
| P/S | 2.07 | ||
| P/FCF | 38.23 | ||
| P/OCF | 19.52 | ||
| P/B | 12.59 | ||
| P/tB | 15 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)2.04
EY3.45%
EPS(NY)2.38
Fwd EY4.02%
FCF(TTM)1.55
FCFY2.62%
OCF(TTM)3.03
OCFY5.12%
SpS28.58
BVpS4.7
TBVpS3.95
PEG (NY)5.64
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 43.66% | ||
| ROCE | 18.85% | ||
| ROIC | 14.63% | ||
| ROICexc | 15.07% | ||
| ROICexgc | 15.91% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.41% | ||
| FCFM | 5.41% |
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%
ROICexcg growth 3Y-8.38%
ROICexcg 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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 165.18% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 19.71 | ||
| Cash Conversion | 82.55% | ||
| Profit Quality | 75.43% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 5.27 |
F-Score6
WACC9.48%
ROIC/WACC1.54
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)-1.74%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%3.05%
EPS Next Y5.14%
EPS Next 2Y7.95%
EPS Next 3Y8.96%
EPS Next 5Y9.81%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%4.55%
Revenue Next Year5.22%
Revenue Next 2Y5.84%
Revenue Next 3Y6.26%
Revenue Next 5Y6.97%
EBIT growth 1Y-1.99%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year36.18%
EBIT Next 3Y16.95%
EBIT Next 5Y13.57%
FCF growth 1Y25.03%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y6.1%
OCF growth 3Y7.66%
OCF growth 5Y11.85%