TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSN - US9024941034 - Common Stock
59.56 USD
+1.89 (+3.28%)
59.7 USD
+0.14 (+0.24%)
Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 86 industry peers in the Food Products industry. TSN has only an average score on both its financial health and profitability. TSN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSN was profitable.
TSN had a positive operating cash flow in the past year.
TSN had positive earnings in 4 of the past 5 years.
In the past 5 years TSN always reported a positive cash flow from operatings.
1.2 Ratios
TSN has a Return On Assets of 1.29%. This is comparable to the rest of the industry: TSN outperforms 47.67% of its industry peers.
With a Return On Equity value of 2.62%, TSN perfoms like the industry average, outperforming 47.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.46%, TSN is in line with its industry, outperforming 53.49% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSN is significantly below the industry average of 28.69%.
The 3 year average ROIC (3.04%) for TSN is below the current ROIC(3.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 2.62% | ||
| ROIC | 3.46% |
ROA(3y)0.55%
ROA(5y)3.77%
ROE(3y)1.13%
ROE(5y)7.4%
ROIC(3y)3.04%
ROIC(5y)6.4%
1.3 Margins
TSN has a Profit Margin (0.87%) which is in line with its industry peers.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin (2.72%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TSN has declined.
TSN's Gross Margin of 6.57% is on the low side compared to the rest of the industry. TSN is outperformed by 79.07% of its industry peers.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | 0.87% | ||
| GM | 6.57% |
OM growth 3Y-30.99%
OM growth 5Y-20.17%
PM growth 3Y-47.67%
PM growth 5Y-28.84%
GM growth 3Y-19.14%
GM growth 5Y-13.62%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
TSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSN has less shares outstanding
The debt/assets ratio for TSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.13 indicates that TSN is not in any danger for bankruptcy at the moment.
TSN has a better Altman-Z score (3.13) than 68.60% of its industry peers.
TSN has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as TSN would need 7.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.50, TSN is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that TSN is not too dependend on debt financing.
TSN has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.49
WACC7.01%
2.3 Liquidity
TSN has a Current Ratio of 1.55. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TSN (1.55) is comparable to the rest of the industry.
TSN has a Quick Ratio of 1.55. This is a bad value and indicates that TSN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.66, TSN is not doing good in the industry: 68.60% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.90% over the past year.
TSN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.55% yearly.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.12%.
TSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.74% yearly.
EPS 1Y (TTM)32.9%
EPS 3Y-22.14%
EPS 5Y-6.55%
EPS Q2Q%25%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y0.72%
Revenue growth 5Y4.74%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 16.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.95% on average over the next years.
EPS Next Y-6.75%
EPS Next 2Y3.3%
EPS Next 3Y11.09%
EPS Next 5Y16.57%
Revenue Next Year2.7%
Revenue Next 2Y1.73%
Revenue Next 3Y1.84%
Revenue Next 5Y1.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 14.46, the valuation of TSN can be described as correct.
Based on the Price/Earnings ratio, TSN is valued a bit cheaper than the industry average as 68.60% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (26.76), we can say TSN is valued slightly cheaper.
TSN is valuated correctly with a Price/Forward Earnings ratio of 15.50.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 69.77% of the companies in the same industry.
TSN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 15.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSN is on the same level as its industry peers.
69.77% of the companies in the same industry are more expensive than TSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.87 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.3%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 5.10, TSN pays a bit more dividend than its industry peers.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.64%.
TSN has been paying a dividend for at least 10 years, so it has a reliable track record.
TSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.64%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 147.05% of its income as dividend. This is not a sustainable payout ratio.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP147.05%
EPS Next 2Y3.3%
EPS Next 3Y11.09%
59.56
+1.89 (+3.28%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.68%
Inst Owner Change0.9%
Ins Owners1.34%
Ins Owner Change2.04%
Market Cap21.03B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.13 (7.67%)
Short Float %3.42%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.97
Dividend Growth(5Y)3.64%
DP147.05%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.74%
Min EPS beat(2)14.96%
Max EPS beat(2)36.52%
EPS beat(4)4
Avg EPS beat(4)22.7%
Min EPS beat(4)10.65%
Max EPS beat(4)36.52%
EPS beat(8)8
Avg EPS beat(8)35.18%
EPS beat(12)9
Avg EPS beat(12)10.24%
EPS beat(16)11
Avg EPS beat(16)11.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)0.75%
PT rev (3m)-1.1%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-5.19%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 15.5 | ||
| P/S | 0.39 | ||
| P/FCF | 17.87 | ||
| P/OCF | 9.76 | ||
| P/B | 1.16 | ||
| P/tB | 7.03 | ||
| EV/EBITDA | 10.07 |
EPS(TTM)4.12
EY6.92%
EPS(NY)3.84
Fwd EY6.45%
FCF(TTM)3.33
FCFY5.6%
OCF(TTM)6.1
OCFY10.25%
SpS154.2
BVpS51.23
TBVpS8.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number68.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 2.62% | ||
| ROCE | 4.9% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 7.5% | ||
| OM | 2.72% | ||
| PM (TTM) | 0.87% | ||
| GM | 6.57% | ||
| FCFM | 2.16% |
ROA(3y)0.55%
ROA(5y)3.77%
ROE(3y)1.13%
ROE(5y)7.4%
ROIC(3y)3.04%
ROIC(5y)6.4%
ROICexc(3y)3.17%
ROICexc(5y)6.78%
ROICexgc(3y)6.6%
ROICexgc(5y)15.99%
ROCE(3y)4.32%
ROCE(5y)9.07%
ROICexgc growth 3Y-30.89%
ROICexgc growth 5Y-20.07%
ROICexc growth 3Y-29.37%
ROICexc growth 5Y-16.52%
OM growth 3Y-30.99%
OM growth 5Y-20.17%
PM growth 3Y-47.67%
PM growth 5Y-28.84%
GM growth 3Y-19.14%
GM growth 5Y-13.62%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 71.86% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 75.8% | ||
| Profit Quality | 248.31% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 3.13 |
F-Score6
WACC7.01%
ROIC/WACC0.49
Cap/Depr(3y)99.18%
Cap/Depr(5y)110.82%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.9%
EPS 3Y-22.14%
EPS 5Y-6.55%
EPS Q2Q%25%
EPS Next Y-6.75%
EPS Next 2Y3.3%
EPS Next 3Y11.09%
EPS Next 5Y16.57%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y0.72%
Revenue growth 5Y4.74%
Sales Q2Q%2.17%
Revenue Next Year2.7%
Revenue Next 2Y1.73%
Revenue Next 3Y1.84%
Revenue Next 5Y1.95%
EBIT growth 1Y-13.74%
EBIT growth 3Y-30.5%
EBIT growth 5Y-16.38%
EBIT Next Year69.48%
EBIT Next 3Y25.82%
EBIT Next 5Y22.35%
FCF growth 1Y-19.27%
FCF growth 3Y13.74%
FCF growth 5Y-15.14%
OCF growth 1Y-16.8%
OCF growth 3Y-7.09%
OCF growth 5Y-11.07%
TYSON FOODS INC-CL A / TSN FAQ
What is the fundamental rating for TSN stock?
ChartMill assigns a fundamental rating of 4 / 10 to TSN.
Can you provide the valuation status for TYSON FOODS INC-CL A?
ChartMill assigns a valuation rating of 4 / 10 to TYSON FOODS INC-CL A (TSN). This can be considered as Fairly Valued.
How profitable is TYSON FOODS INC-CL A (TSN) stock?
TYSON FOODS INC-CL A (TSN) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for TSN stock?
The Price/Earnings (PE) ratio for TYSON FOODS INC-CL A (TSN) is 14.46 and the Price/Book (PB) ratio is 1.16.
Is the dividend of TYSON FOODS INC-CL A sustainable?
The dividend rating of TYSON FOODS INC-CL A (TSN) is 6 / 10 and the dividend payout ratio is 147.05%.