54.69 USD
+1.29 (+2.42%)
54.69 USD
0 (0%)
Taking everything into account, TSCO scores 6 out of 10 in our fundamental rating. TSCO was compared to 122 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 has a correct valuation and a medium growth rate.
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.
- In the past 5 years TSCO has always been profitable.
- Each year in the past 5 years TSCO had a positive operating cash flow.
1.2 Ratios
- TSCO has a better Return On Assets (10.16%) than 85.95% of its industry peers.
- With an excellent Return On Equity value of 42.95%, TSCO belongs to the best of the industry, outperforming 92.56% of the companies in the same industry.
- The Return On Invested Capital of TSCO (14.30%) is better than 83.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TSCO is above the industry average of 12.24%.
| 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 83.47% of its industry peers.
- TSCO's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 9.66%, TSCO belongs to the best of the industry, outperforming 82.64% of the companies in the same industry.
- TSCO's Operating Margin has improved in the last couple of years.
- TSCO has a Gross Margin of 36.46%. This is comparable to the rest of the industry: TSCO outperforms 50.41% of its industry peers.
- TSCO's Gross Margin has been stable in the last couple of years.
| 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
- 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 less shares outstanding
- The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
- The debt/assets ratio for TSCO has been reduced compared to a year ago.
2.2 Solvency
- TSCO has an Altman-Z score of 5.00. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
- TSCO's Altman-Z score of 5.00 is amongst the best of the industry. TSCO outperforms 86.78% 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.
- TSCO's Debt to FCF ratio of 1.87 is fine compared to the rest of the industry. TSCO outperforms 76.86% of its industry peers.
- TSCO has a Debt/Equity ratio of 0.69. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
- TSCO has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: TSCO outperforms 49.59% of its industry peers.
- 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 | 5 |
ROIC/WACC1.49
WACC9.59%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that TSCO should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.30, TSCO perfoms like the industry average, outperforming 50.41% of the companies in the same industry.
- TSCO has a Quick Ratio of 1.30. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
- TSCO's Quick ratio of 0.14 is on the low side compared to the rest of the industry. TSCO is outperformed by 93.39% 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 | 1.3 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.17% over the past year.
- TSCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.96% yearly.
- The Revenue has been growing slightly by 4.26% in the past year.
- 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)1.17%
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
- TSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.72% yearly.
- TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.77% yearly.
EPS Next Y5.21%
EPS Next 2Y7.88%
EPS Next 3Y8.95%
EPS Next 5Y9.72%
Revenue Next Year4.94%
Revenue Next 2Y5.63%
Revenue Next 3Y6%
Revenue Next 5Y6.77%
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 26.29.
- Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than the industry average as 66.12% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of TSCO to the average of the S&P500 Index (27.21), we can say TSCO is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 23.04, the valuation of TSCO can be described as rather expensive.
- TSCO's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. TSCO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 23.04 |
4.2 Price Multiples
- TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
- TSCO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSCO is cheaper than 62.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.34 | ||
| EV/EBITDA | 15.44 |
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)5.05
PEG (5Y)1.55
EPS Next 2Y7.88%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
- TSCO has a Yearly Dividend Yield of 1.72%. 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 2.15.
- TSCO's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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 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 2Y7.88%
EPS Next 3Y8.95%
TRACTOR SUPPLY COMPANY / TSCO FAQ
What is the fundamental rating for TSCO stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSCO.
Can you provide the valuation status for TRACTOR SUPPLY COMPANY?
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.
Can you provide the financial health for TSCO stock?
The financial health rating of TRACTOR SUPPLY COMPANY (TSCO) is 7 / 10.
What is the expected EPS growth for TRACTOR SUPPLY COMPANY (TSCO) stock?
The Earnings per Share (EPS) of TRACTOR SUPPLY COMPANY (TSCO) is expected to grow by 5.21% in the next year.