TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. TSCO has an excellent profitability rating, but 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
TSCO had positive earnings in the past year.
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 (10.42%) than 83.47% of its industry peers.
TSCO has a Return On Equity of 48.35%. This is amongst the best in the industry. TSCO outperforms 93.39% of its industry peers.
TSCO has a better Return On Invested Capital (14.49%) than 83.47% of its industry peers.
TSCO had an Average Return On Invested Capital over the past 3 years of 16.60%. This is above the industry average of 13.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 48.35% | ||
| ROIC | 14.49% |
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 7.24% is amongst the best of the industry. TSCO outperforms 83.47% 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 9.72%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
In the last couple of years the Operating Margin of TSCO has grown nicely.
With a Gross Margin value of 36.32%, TSCO perfoms like the industry average, outperforming 51.24% of the companies in the same 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 | 9.72% | ||
| PM (TTM) | 7.24% | ||
| GM | 36.32% |
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 just above the Cost of Capital (WACC), which means it is creating some 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.21 indicates that TSCO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.21, TSCO belongs to the best of the industry, outperforming 88.43% of the companies in the same industry.
TSCO has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as TSCO would need 3.45 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.45, TSCO is doing good in the industry, outperforming 71.90% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that TSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, TSCO perfoms like the industry average, outperforming 43.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.56
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.41 indicates that TSCO should not have too much problems paying its short term obligations.
TSCO has a Current ratio (1.41) which is in line with its industry peers.
A Quick Ratio of 0.17 indicates that TSCO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.17, TSCO is doing worse than 91.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for TSCO have decreased by -1.95% in the last year.
Measured over the past years, TSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.96% on average per year.
TSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.07%.
The Revenue has been growing by 12.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.95%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-7.1%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
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 9.51% yearly.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y4%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
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
TSCO is valuated quite expensively with a Price/Earnings ratio of 28.25.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than 61.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. TSCO is around the same levels.
With a Price/Forward Earnings ratio of 24.21, 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.
When comparing the Price/Forward Earnings ratio of TSCO to the average of the S&P500 Index (21.76), we can say TSCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.21 |
4.2 Price Multiples
TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.19 | ||
| EV/EBITDA | 16.87 |
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)7.07
PEG (5Y)1.67
EPS Next 2Y7.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.68%, TSCO has a reasonable but not impressive dividend return.
TSCO's Dividend Yield is rather good when compared to the industry average which is at 4.99. TSCO pays more dividend than 80.17% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, TSCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
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)-8.25%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
TSCO pays out 43.98% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.98%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
56.79
-0.65 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-0.03%
Market Cap30.11B
Analysts72.82
Price Target55.25 (-2.71%)
Short Float %7.81%
Short Ratio6.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.98%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.28%
Min EPS beat(2)-9.37%
Max EPS beat(2)-5.19%
EPS beat(4)0
Avg EPS beat(4)-4.56%
Min EPS beat(4)-9.37%
Max EPS beat(4)-1.81%
EPS beat(8)2
Avg EPS beat(8)-2.18%
EPS beat(12)3
Avg EPS beat(12)-1.97%
EPS beat(16)7
Avg EPS beat(16)0.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-2.27%
Revenue beat(8)0
Avg Revenue beat(8)-2.84%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)5
Avg Revenue beat(16)-1.28%
PT rev (1m)0.01%
PT rev (3m)-6.2%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.21 | ||
| P/S | 2.01 | ||
| P/FCF | 49.19 | ||
| P/OCF | 21.82 | ||
| P/B | 13.45 | ||
| P/tB | 16.38 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)2.01
EY3.54%
EPS(NY)2.35
Fwd EY4.13%
FCF(TTM)1.15
FCFY2.03%
OCF(TTM)2.6
OCFY4.58%
SpS28.21
BVpS4.22
TBVpS3.47
PEG (NY)7.07
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 48.35% | ||
| ROCE | 18.67% | ||
| ROIC | 14.49% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 15.77% | ||
| OM | 9.72% | ||
| PM (TTM) | 7.24% | ||
| GM | 36.32% | ||
| FCFM | 4.09% |
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 Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 165.92% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 20.67 | ||
| Cash Conversion | 72.02% | ||
| Profit Quality | 56.55% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 5.21 |
F-Score6
WACC9.32%
ROIC/WACC1.56
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)-1.95%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-7.1%
EPS Next Y4%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
EBIT growth 1Y-2.94%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year35.19%
EBIT Next 3Y16.87%
EBIT Next 5Y13.39%
FCF growth 1Y22.76%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y4.76%
OCF growth 3Y7.66%
OCF growth 5Y11.85%