TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSN - US9024941034 - Common Stock
59.18 USD
+0.6 (+1.02%)
59.18 USD
0 (0%)
Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 87 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 (1.29%) which is comparable to the rest of the industry.
The Return On Equity of TSN (2.62%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.46%, TSN perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is significantly below the industry average of 28.50%.
The last Return On Invested Capital (3.46%) for TSN is above the 3 year average (3.04%), which is a sign of increasing profitability.
| 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's Profit Margin of 0.87% is in line compared to the rest of the industry. TSN outperforms 47.13% of its industry peers.
In the last couple of years the Profit Margin of TSN has declined.
TSN's Operating Margin of 2.72% is in line compared to the rest of the industry. TSN outperforms 50.57% of its industry peers.
In the last couple of years the Operating Margin of TSN has declined.
Looking at the Gross Margin, with a value of 6.57%, TSN is doing worse than 78.16% of the companies in the same industry.
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.
TSN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TSN has been reduced compared to a year ago.
2.2 Solvency
TSN has an Altman-Z score of 3.11. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, TSN is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
The Debt to FCF ratio of TSN is 7.50, which is on the high side as it means it would take TSN, 7.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TSN (7.50) is better than 68.97% of its industry peers.
TSN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, TSN perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.49
WACC7%
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.
Looking at the Current ratio, with a value of 1.55, TSN is in line with its industry, outperforming 52.87% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that TSN may have some problems paying its short term obligations.
With a Quick ratio value of 0.66, TSN is not doing good in the industry: 67.82% 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
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.90%, which is quite impressive.
Measured over the past years, TSN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.55% on average per year.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.12%.
The Revenue has been growing slightly by 4.74% on average over the past years.
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
Based on estimates for the next years, TSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.57% on average per year.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.95% yearly.
EPS Next Y-5.31%
EPS Next 2Y2.78%
EPS Next 3Y11.09%
EPS Next 5Y16.57%
Revenue Next Year2.26%
Revenue Next 2Y1.53%
Revenue Next 3Y1.84%
Revenue Next 5Y1.95%
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 accelerating.
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
A Price/Earnings ratio of 14.36 indicates a correct valuation of TSN.
Compared to the rest of the industry, the Price/Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (26.77), we can say TSN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.17, the valuation of TSN can be described as correct.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 68.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (23.35), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSN.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.75 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is a higher than the industry average which is at 2.42.
Compared to an average S&P500 Dividend Yield of 2.00, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.64%.
TSN has paid a dividend for at least 10 years, which is 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.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP147.05%
EPS Next 2Y2.78%
EPS Next 3Y11.09%
59.18
+0.6 (+1.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.68%
Inst Owner Change0.91%
Ins Owners1.34%
Ins Owner Change2.05%
Market Cap20.89B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.92 (9.7%)
Short Float %3.45%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)1.23%
PT rev (3m)0.11%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)1.66%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.36 | ||
| Fwd PE | 15.17 | ||
| P/S | 0.38 | ||
| P/FCF | 17.75 | ||
| P/OCF | 9.7 | ||
| P/B | 1.16 | ||
| P/tB | 6.98 | ||
| EV/EBITDA | 9.95 |
EPS(TTM)4.12
EY6.96%
EPS(NY)3.9
Fwd EY6.59%
FCF(TTM)3.33
FCFY5.63%
OCF(TTM)6.1
OCFY10.31%
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 | 3.11 |
F-Score6
WACC7%
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-5.31%
EPS Next 2Y2.78%
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 Year2.26%
Revenue Next 2Y1.53%
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 Year70.35%
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 14.36 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%.