TRACTOR SUPPLY COMPANY (TSCO)
US8923561067 - Common Stock
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 industry peers in the Specialty Retail industry. TSCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
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 11.75%, TSCO belongs to the top of the industry, outperforming 89.68% of the companies in the same industry.
With an excellent Return On Equity value of 52.84%, TSCO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.47%, TSCO belongs to the top of the industry, outperforming 85.71% 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 above the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 52.84% | ||
| ROIC | 16.47% |
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
TSCO has a better Profit Margin (7.66%) than 82.54% of its industry peers.
TSCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.22%, TSCO belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (36.03%) which is comparable to the rest of the industry.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.22% | ||
| PM (TTM) | 7.66% | ||
| GM | 36.03% |
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.
Compared to 1 year ago, TSCO has less shares outstanding
The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
Compared to 1 year ago, TSCO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.60 indicates that TSCO is not in any danger for bankruptcy at the moment.
The Altman-Z score of TSCO (5.60) is better than 91.27% of its industry peers.
The Debt to FCF ratio of TSCO is 2.15, which is a good value as it means it would take TSCO, 2.15 years of fcf income to pay off all of its debts.
TSCO's Debt to FCF ratio of 2.15 is fine compared to the rest of the industry. TSCO outperforms 71.43% of its industry peers.
TSCO has a Debt/Equity ratio of 0.83. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, TSCO perfoms like the industry average, outperforming 42.86% 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 | 0.83 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 5.6 |
ROIC/WACC1.78
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.40 indicates that TSCO should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, TSCO perfoms like the industry average, outperforming 48.41% of the companies in the same industry.
A Quick Ratio of 0.19 indicates that TSCO may have some problems paying its short term obligations.
TSCO has a Quick ratio of 0.19. This is amonst the worse of the industry: TSCO underperforms 87.30% 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 | 1.4 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.77%.
Measured over the past years, TSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.49% on average per year.
Looking at the last year, TSCO shows a small growth in Revenue. The Revenue has grown by 1.18% 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)5.77%
EPS 3Y13.67%
EPS 5Y18.49%
EPS growth Q2Q10.91%
Revenue 1Y (TTM)1.18%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Revenue growth Q2Q2.9%
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 Y3.35%
EPS Next 2Y6.77%
EPS Next 3Y8.04%
EPS Next 5Y8.94%
Revenue Next Year2.77%
Revenue Next 2Y4.47%
Revenue Next 3Y5.12%
Revenue Next 5Y5.84%
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 27.82.
TSCO's Price/Earnings is on the same level as the industry average.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.84, TSCO is valued on the expensive side.
TSCO's Price/Forward Earnings is on the same level as the industry average.
TSCO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.84 |
4.2 Price Multiples
TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.66 | ||
| EV/EBITDA | 17.04 |
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)8.31
PEG (5Y)1.5
EPS Next 2Y6.77%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.59%, TSCO has a reasonable but not impressive dividend return.
TSCO's Dividend Yield is a higher than the industry average which is at 3.25.
Compared to the average S&P500 Dividend Yield of 2.32, TSCO is paying slightly less dividend.
| 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 Years12
Div Non Decr Years12
5.3 Sustainability
40.55% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
TSCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.55%
EPS Next 2Y6.77%
EPS Next 3Y8.04%
TRACTOR SUPPLY COMPANY
NASDAQ:TSCO (5/17/2024, 7:00:01 PM)
After market: 286.4 +0.73 (+0.26%)285.67
+9.46 (+3.42%)
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 Cap30.83B
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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.82 | ||
| Fwd PE | 24.84 | ||
| 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)8.31
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.75% | ||
| ROE | 52.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.22% | ||
| PM (TTM) | 7.66% | ||
| GM | 36.03% | ||
| 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 Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.19 | ||
| 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)
Growth
EPS 1Y (TTM)5.77%
EPS 3Y13.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.18%
Revenue growth 3Y11.08%
Revenue growth 5Y
Revenue growth 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