TYSON FOODS INC-CL A (TSN)
US9024941034 - Common Stock
Taking everything into account, TSN scores 5 out of 10 in our fundamental rating. TSN was compared to 91 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 is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years TSN had a positive operating cash flow.
1.2 Ratios
TSN's Return On Assets of 2.16% is in line compared to the rest of the industry. TSN outperforms 48.35% of its industry peers.
The Return On Equity of TSN (4.35%) is comparable to the rest of the industry.
TSN has a Return On Invested Capital of 4.00%. This is comparable to the rest of the industry: TSN outperforms 46.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSN is below the industry average of 8.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.35% | ||
| ROIC | 4% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.49%
ROIC(5y)7.87%
1.3 Margins
The Profit Margin of TSN (1.50%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TSN has declined.
With a Operating Margin value of 3.22%, TSN perfoms like the industry average, outperforming 50.55% of the companies in the same industry.
TSN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 7.33%, TSN is not doing good in the industry: 78.02% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.22% | ||
| PM (TTM) | 1.5% | ||
| GM | 7.33% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSN is destroying value.
TSN has about the same amout of 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 is higher compared to a year ago.
2.2 Solvency
TSN has an Altman-Z score of 3.12. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN has a better Altman-Z score (3.12) than 72.53% of its industry peers.
The Debt to FCF ratio of TSN is 6.69, which is on the high side as it means it would take TSN, 6.69 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.69, TSN perfoms like the industry average, outperforming 59.34% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that TSN is somewhat dependend on debt financing.
TSN has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: TSN outperforms 47.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.54
WACC7.39%
2.3 Liquidity
A Current Ratio of 2.04 indicates that TSN has no problem at all paying its short term obligations.
TSN has a Current ratio of 2.04. This is in the better half of the industry: TSN outperforms 62.64% of its industry peers.
TSN has a Quick Ratio of 2.04. This is a bad value and indicates that TSN is not financially healthy enough and could expect problems in meeting its short term obligations.
TSN has a Quick ratio of 0.95. This is comparable to the rest of the industry: TSN outperforms 56.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.08%, which is quite impressive.
Measured over the past years, TSN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.70% on average per year.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 0.81%.
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)133.08%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%148.65%
Revenue 1Y (TTM)0.81%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%1.63%
3.2 Future
Based on estimates for the next years, TSN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.28% on average per year.
Based on estimates for the next years, TSN will show a small growth in Revenue. The Revenue will grow by 1.64% on average per year.
EPS Next Y14.4%
EPS Next 2Y15.36%
EPS Next 3Y20.89%
EPS Next 5Y24.28%
Revenue Next Year0.78%
Revenue Next 2Y1.27%
Revenue Next 3Y1.68%
Revenue Next 5Y1.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 18.72, the valuation of TSN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 64.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. TSN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.36, which indicates a correct valuation of TSN.
73.63% of the companies in the same industry are more expensive than TSN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (23.73), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 70.33% of the companies are valued more expensively.
68.13% 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 | 14.16 | ||
| EV/EBITDA | 9.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as TSN's earnings are expected to grow with 20.89% in the coming years.
PEG (NY)1.3
PEG (5Y)N/A
EPS Next 2Y15.36%
EPS Next 3Y20.89%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.44%.
TSN's Dividend Yield is a higher than the industry average which is at 3.83.
TSN's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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 85.50% 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.
DP85.5%
EPS Next 2Y15.36%
EPS Next 3Y20.89%
TYSON FOODS INC-CL A
NYSE:TSN (12/20/2024, 8:04:00 PM)
After market: 58.02 0 (0%)58.02
-0.18 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change1.93%
Ins Owners1.35%
Ins Owner Change3.07%
Market Cap20.65B
Analysts68.24
Price Target65.68 (13.2%)
Short Float %2.01%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Dividend Growth(5Y)3.44%
DP85.5%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)32.31%
Min EPS beat(2)32.3%
Max EPS beat(2)32.32%
EPS beat(4)4
Avg EPS beat(4)47.66%
Min EPS beat(4)32.3%
Max EPS beat(4)67.99%
EPS beat(8)5
Avg EPS beat(8)4.01%
EPS beat(12)7
Avg EPS beat(12)7.56%
EPS beat(16)11
Avg EPS beat(16)13.49%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.12%
Max Revenue beat(2)0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)0.29%
Revenue beat(8)1
Avg Revenue beat(8)-2.17%
Revenue beat(12)5
Avg Revenue beat(12)-0.79%
Revenue beat(16)8
Avg Revenue beat(16)-0.39%
PT rev (1m)0%
PT rev (3m)3.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.27%
EPS NY rev (1m)0.4%
EPS NY rev (3m)-7.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 16.36 | ||
| P/S | 0.39 | ||
| P/FCF | 14.16 | ||
| P/OCF | 7.97 | ||
| P/B | 1.12 | ||
| P/tB | 7.66 | ||
| EV/EBITDA | 9.2 |
EPS(TTM)3.1
EY5.34%
EPS(NY)3.55
Fwd EY6.11%
FCF(TTM)4.1
FCFY7.06%
OCF(TTM)7.28
OCFY12.54%
SpS149.8
BVpS51.68
TBVpS7.58
PEG (NY)1.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.35% | ||
| ROCE | 5.32% | ||
| ROIC | 4% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 8.68% | ||
| OM | 3.22% | ||
| PM (TTM) | 1.5% | ||
| GM | 7.33% | ||
| FCFM | 2.74% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.49%
ROIC(5y)7.87%
ROICexc(3y)5.69%
ROICexc(5y)8.33%
ROICexgc(3y)12.38%
ROICexgc(5y)20.31%
ROCE(3y)7.31%
ROCE(5y)10.46%
ROICexcg growth 3Y-39.85%
ROICexcg 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-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 3.12 | ||
| Cap/Depr | 80.86% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 3.73 | ||
| Cash Conversion | 83.07% | ||
| Profit Quality | 182.25% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 3.12 |
F-Score7
WACC7.39%
ROIC/WACC0.54
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)133.08%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%148.65%
EPS Next Y14.4%
EPS Next 2Y15.36%
EPS Next 3Y20.89%
EPS Next 5Y24.28%
Revenue 1Y (TTM)0.81%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%1.63%
Revenue Next Year0.78%
Revenue Next 2Y1.27%
Revenue Next 3Y1.68%
Revenue Next 5Y1.64%
EBIT growth 1Y121.11%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year97.8%
EBIT Next 3Y35.88%
EBIT Next 5Y27.69%
FCF growth 1Y879.68%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y47.83%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%