54.69 USD
+1.29 (+2.42%)
54.69 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. TSCO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TSCO has a correct valuation and a medium growth rate.
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
- TSCO has a Return On Assets of 10.16%. This is amongst the best in the industry. TSCO outperforms 85.95% of its industry peers.
- The Return On Equity of TSCO (42.95%) is better than 92.56% of its industry peers.
- TSCO has a better Return On Invested Capital (14.30%) 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 12.37%.
| 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
- Looking at the Profit Margin, with a value of 7.18%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
- TSCO's Profit Margin has improved in the last couple of years.
- TSCO's Operating Margin of 9.66% is amongst the best of the industry. TSCO outperforms 82.64% of its industry peers.
- TSCO's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 36.46%, TSCO perfoms like the industry average, outperforming 50.41% of the companies in the same industry.
- 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.
- TSCO has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TSCO has less shares outstanding
- Compared to 1 year ago, TSCO has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.95 indicates that TSCO is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.95, TSCO belongs to the best of the industry, outperforming 86.78% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (1.87) than 76.86% of its industry peers.
- A Debt/Equity ratio of 0.69 indicates that TSCO is somewhat dependend on debt financing.
- TSCO has a Debt to Equity ratio (0.69) which is comparable to the rest of the 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 | 4.95 |
ROIC/WACC1.49
WACC9.59%
2.3 Liquidity
- TSCO has a Current Ratio of 1.30. This is a normal value and indicates that TSCO is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.30, TSCO is in line with its industry, 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.
- The Quick ratio of TSCO (0.14) is worse than 93.39% 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 | 1.3 | ||
| 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%.
- TSCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.96% yearly.
- Looking at the last year, TSCO shows a small growth in Revenue. The Revenue has grown by 4.26% in the last 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.
- The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y5.39%
EPS Next 2Y8%
EPS Next 3Y9.09%
EPS Next 5Y9.72%
Revenue Next Year5.12%
Revenue Next 2Y5.82%
Revenue Next 3Y6.15%
Revenue Next 5Y6.77%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- Based on the Price/Earnings ratio of 26.29, the valuation of TSCO can be described as expensive.
- TSCO's Price/Earnings ratio is a bit cheaper when compared to the industry. TSCO is cheaper than 67.77% of the companies in the same industry.
- TSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 22.98, TSCO is valued on the expensive side.
- 61.16% of the companies in the same industry are more expensive than TSCO, based on the Price/Forward Earnings ratio.
- TSCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.29 | ||
| Fwd PE | 22.98 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSCO is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO indicates a somewhat cheap valuation: TSCO is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.34 | ||
| EV/EBITDA | 15.1 |
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)4.88
PEG (5Y)1.55
EPS Next 2Y8%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.72%, TSCO has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.13, TSCO pays a bit more dividend than its industry peers.
- 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 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
- 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%
EPS Next 3Y9.09%
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 5.39% in the next year.