TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
51.38 USD
-0.43 (-0.83%)
51.43 USD
+0.05 (+0.1%)
Taking everything into account, TSN scores 4 out of 10 in our fundamental rating. TSN was compared to 87 industry peers in the Food Products industry. TSN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TSN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSN was profitable.
In the past year TSN had a positive cash flow from operations.
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 2.15%. This is comparable to the rest of the industry: TSN outperforms 49.43% of its industry peers.
TSN has a Return On Equity (4.28%) which is in line with its industry peers.
The Return On Invested Capital of TSN (4.91%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TSN is significantly below the industry average of 28.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROIC | 4.91% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
1.3 Margins
Looking at the Profit Margin, with a value of 1.45%, TSN is in line with its industry, outperforming 50.57% of the companies in the same industry.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin of 3.71%. This is comparable to the rest of the industry: TSN outperforms 54.02% of its industry peers.
TSN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 7.53%, TSN is doing worse than 74.71% 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 | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% |
OM growth 3Y-34.98%
OM growth 5Y-13.43%
PM growth 3Y-38.58%
PM growth 5Y-20.31%
GM growth 3Y-23.32%
GM growth 5Y-9.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
Compared to 1 year ago, TSN has about the same amount of shares outstanding.
The number of shares outstanding for TSN has been reduced compared to 5 years ago.
Compared to 1 year ago, TSN has a worse debt to assets ratio.
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 Altman-Z score of 3.13. This is in the better half of the industry: TSN outperforms 66.67% of its industry peers.
The Debt to FCF ratio of TSN is 6.98, which is on the high side as it means it would take TSN, 6.98 years of fcf income to pay off all of its debts.
TSN has a Debt to FCF ratio of 6.98. This is in the better half of the industry: TSN outperforms 70.11% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that TSN is not too dependend on debt financing.
TSN's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. TSN outperforms 47.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.71
WACC6.91%
2.3 Liquidity
TSN has a Current Ratio of 1.73. 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 (1.73) is comparable to the rest of the industry.
A Quick Ratio of 0.78 indicates that TSN may have some problems paying its short term obligations.
TSN's Quick ratio of 0.78 is on the low side compared to the rest of the industry. TSN is outperformed by 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.55% over the past year.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
EPS 1Y (TTM)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
3.2 Future
TSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.65% yearly.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.
EPS Next Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue Next Year2.96%
Revenue Next 2Y2.67%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
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
TSN is valuated correctly with a Price/Earnings ratio of 13.21.
Based on the Price/Earnings ratio, TSN is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (26.91), we can say TSN is valued rather cheaply.
TSN is valuated correctly with a Price/Forward Earnings ratio of 12.68.
77.01% of the companies in the same industry are more expensive than TSN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than 74.71% of the companies in the same industry.
73.56% 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 | 14.08 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
TSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TSN's earnings are expected to grow with 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y14.33%
EPS Next 3Y16.49%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
TSN's Dividend Yield is a higher than the industry average which is at 5.09.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
TSN has been paying a dividend for at least 10 years, so it has a reliable track record.
TSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 88.65% 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.
DP88.65%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
51.38
-0.43 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change-0.12%
Ins Owners1.32%
Ins Owner Change-0.03%
Market Cap18.28B
Revenue(TTM)54.15B
Net Income(TTM)784.00M
Analysts70
Price Target65.05 (26.61%)
Short Float %3.58%
Short Ratio3.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP88.65%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.8%
Min EPS beat(2)10.65%
Max EPS beat(2)14.96%
EPS beat(4)4
Avg EPS beat(4)21.65%
Min EPS beat(4)10.65%
Max EPS beat(4)32.3%
EPS beat(8)8
Avg EPS beat(8)33.91%
EPS beat(12)8
Avg EPS beat(12)6.65%
EPS beat(16)11
Avg EPS beat(16)9.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)1.4%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-1.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)0.32%
PT rev (3m)-2.2%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.68 | ||
| P/S | 0.34 | ||
| P/FCF | 14.08 | ||
| P/OCF | 8.17 | ||
| P/B | 1 | ||
| P/tB | 5.74 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)3.89
EY7.57%
EPS(NY)4.05
Fwd EY7.89%
FCF(TTM)3.65
FCFY7.1%
OCF(TTM)6.29
OCFY12.24%
SpS152.19
BVpS51.54
TBVpS8.96
PEG (NY)0.53
PEG (5Y)N/A
Graham Number67.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROCE | 6.53% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 10.74% | ||
| OM | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% | ||
| FCFM | 2.4% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
ROICexc(3y)5.73%
ROICexc(5y)8.35%
ROICexgc(3y)12.45%
ROICexgc(5y)20.35%
ROCE(3y)7.36%
ROCE(5y)10.49%
ROICexgc growth 3Y-39.85%
ROICexgc growth 5Y-18%
ROICexc growth 3Y-34.6%
ROICexc growth 5Y-11.67%
OM growth 3Y-34.98%
OM growth 5Y-13.43%
PM growth 3Y-38.58%
PM growth 5Y-20.31%
GM growth 3Y-23.32%
GM growth 5Y-9.16%
F-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 69.71% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.66% | ||
| Profit Quality | 165.56% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.13 |
F-Score8
WACC6.91%
ROIC/WACC0.71
Cap/Depr(3y)127.55%
Cap/Depr(5y)116.57%
Cap/Sales(3y)3.11%
Cap/Sales(5y)2.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
EPS Next Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
Revenue Next Year2.96%
Revenue Next 2Y2.67%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
EBIT growth 1Y55.74%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year106.24%
EBIT Next 3Y32.58%
EBIT Next 5Y27.68%
FCF growth 1Y1224.49%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y0.49%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%
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 6 / 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 3 / 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 13.21 and the Price/Book (PB) ratio is 1.
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 88.65%.