TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
USA - NASDAQ:TSCO - US8923561067 - Common Stock
56.37 USD
+0.09 (+0.16%)
56.37 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 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 is not valued too expensively and it also shows 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.
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 83.47% of its industry peers.
The Return On Equity of TSCO (42.95%) is better than 94.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.30%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSCO is above the industry average of 11.81%.
| 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
The Profit Margin of TSCO (7.18%) is better than 82.64% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
TSCO's Operating Margin of 9.66% is amongst the best of the industry. TSCO outperforms 81.82% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO's Gross Margin of 36.46% is in line compared to the rest of the industry. TSCO outperforms 52.07% 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) well above the Cost of Capital (WACC), TSCO is creating value.
TSCO has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 5.07 indicates that TSCO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.07, TSCO belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
The Debt to FCF ratio of TSCO is 1.87, which is an excellent value as it means it would take TSCO, only 1.87 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.87, TSCO is doing good in the industry, outperforming 76.86% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that TSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, TSCO is in line with its industry, outperforming 47.93% 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 | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.56
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.30 indicates that TSCO should not have too much problems paying its short term obligations.
TSCO has a Current ratio of 1.30. This is comparable to the rest of the industry: TSCO outperforms 48.76% of its industry peers.
A Quick Ratio of 0.14 indicates that TSCO may have some problems paying its short term obligations.
The Quick ratio of TSCO (0.14) is worse than 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
TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.17%.
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.
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
Based on estimates for the next years, TSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.81% on average per year.
The Revenue is expected to grow by 6.97% on average over the next years.
EPS Next Y5.29%
EPS Next 2Y8.06%
EPS Next 3Y9.12%
EPS Next 5Y9.81%
Revenue Next Year5.23%
Revenue Next 2Y5.86%
Revenue Next 3Y6.27%
Revenue Next 5Y6.97%
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.
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 27.10.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.08, TSCO is valued at the same level.
With a Price/Forward Earnings ratio of 23.66, TSCO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, TSCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 23.66 |
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 indicates a somewhat cheap valuation: TSCO is cheaper than 61.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 15.91 |
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)5.12
PEG (5Y)1.6
EPS Next 2Y8.06%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.63%.
TSCO's Dividend Yield is a higher than the industry average which is at 5.23.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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
TSCO pays out 43.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.76%
EPS Next 2Y8.06%
EPS Next 3Y9.12%
56.37
+0.09 (+0.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.6%
Inst Owner Change0.04%
Ins Owners0.27%
Ins Owner Change-0.11%
Market Cap29.87B
Revenue(TTM)15.40B
Net Income(TTM)1.11B
Analysts74.36
Price Target62.48 (10.84%)
Short Float %6.93%
Short Ratio7.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.76%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.72%
Min EPS beat(2)-1.01%
Max EPS beat(2)-0.43%
EPS beat(4)0
Avg EPS beat(4)-4%
Min EPS beat(4)-9.37%
Max EPS beat(4)-0.43%
EPS beat(8)2
Avg EPS beat(8)-1.8%
EPS beat(12)3
Avg EPS beat(12)-1.92%
EPS beat(16)5
Avg EPS beat(16)-0.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.25%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)1
Avg Revenue beat(12)-2.24%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)0.72%
PT rev (3m)12.25%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)2.29%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 23.66 | ||
| P/S | 1.94 | ||
| P/FCF | 31.37 | ||
| P/OCF | 16.35 | ||
| P/B | 11.61 | ||
| P/tB | 13.74 | ||
| EV/EBITDA | 15.91 |
EPS(TTM)2.08
EY3.69%
EPS(NY)2.38
Fwd EY4.23%
FCF(TTM)1.8
FCFY3.19%
OCF(TTM)3.45
OCFY6.12%
SpS29.06
BVpS4.86
TBVpS4.1
PEG (NY)5.12
PEG (5Y)1.6
Graham Number15.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.16% | ||
| ROE | 42.95% | ||
| ROCE | 18.43% | ||
| ROIC | 14.3% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 15.42% | ||
| OM | 9.66% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.46% | ||
| FCFM | 6.18% |
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%
ROICexgc growth 3Y-8.38%
ROICexgc 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 Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 179.98% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 21.12 | ||
| Cash Conversion | 92.57% | ||
| Profit Quality | 86.18% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 5.07 |
F-Score6
WACC9.18%
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)1.17%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%9.37%
EPS Next Y5.29%
EPS Next 2Y8.06%
EPS Next 3Y9.12%
EPS Next 5Y9.81%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
Revenue Next Year5.23%
Revenue Next 2Y5.86%
Revenue Next 3Y6.27%
Revenue Next 5Y6.97%
EBIT growth 1Y0.31%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year36.18%
EBIT Next 3Y16.92%
EBIT Next 5Y13.57%
FCF growth 1Y16.19%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y9.53%
OCF growth 3Y7.66%
OCF growth 5Y11.85%
TRACTOR SUPPLY COMPANY / TSCO FAQ
What is the ChartMill fundamental rating of TRACTOR SUPPLY COMPANY (TSCO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSCO.
What is the valuation status for TSCO stock?
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.
What is the financial health of TRACTOR SUPPLY COMPANY (TSCO) stock?
The financial health rating of TRACTOR SUPPLY COMPANY (TSCO) is 8 / 10.
Is the dividend of TRACTOR SUPPLY COMPANY sustainable?
The dividend rating of TRACTOR SUPPLY COMPANY (TSCO) is 5 / 10 and the dividend payout ratio is 43.76%.