TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TSN had positive earnings in the past year.
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 has a Return On Assets (2.16%) which is in line with its industry peers.
The Return On Equity of TSN (4.35%) is comparable to the rest of the industry.
TSN's Return On Invested Capital of 4.00% is in line compared to the rest of the industry. TSN outperforms 43.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is below the industry average of 9.03%.
| 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
Looking at the Profit Margin, with a value of 1.50%, TSN is in line with its industry, outperforming 40.70% of the companies in the same industry.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin (3.22%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TSN has declined.
The Gross Margin of TSN (7.33%) is worse than 79.07% of its industry peers.
TSN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
TSN has a worse debt/assets ratio than last year.
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 72.09% of its industry peers.
TSN has a debt to FCF ratio of 6.69. This is a slightly negative value and a sign of low solvency as TSN would need 6.69 years to pay back of all of its debts.
TSN has a Debt to FCF ratio (6.69) which is comparable to the rest of the 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 47.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.54
WACC7.37%
2.3 Liquidity
TSN has a Current Ratio of 2.04. This indicates that TSN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.04, TSN is doing good in the industry, outperforming 60.47% of the companies in the same industry.
A Quick Ratio of 0.95 indicates that TSN may have some problems paying its short term obligations.
TSN has a Quick ratio (0.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 133.08% over the past year.
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.
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 0.81% 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)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
The Earnings Per Share is expected to grow by 24.28% on average over the next years. This is a very strong growth
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.64% yearly.
EPS Next Y14.4%
EPS Next 2Y15.36%
EPS Next 3Y20.89%
EPS Next 5Y24.28%
Revenue Next Year0.74%
Revenue Next 2Y1.2%
Revenue Next 3Y1.58%
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
TSN is valuated rather expensively with a Price/Earnings ratio of 18.22.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 60.47% of the companies in the same industry.
TSN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.93 indicates a correct valuation of TSN.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 70.93% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 15.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 66.28% of the companies are valued more expensively.
66.28% 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 | 13.8 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
TSN's 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)1.27
PEG (5Y)N/A
EPS Next 2Y15.36%
EPS Next 3Y20.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.57%, TSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.86, 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
TSN has paid a dividend for at least 10 years, which is 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.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP85.5%
EPS Next 2Y15.36%
EPS Next 3Y20.89%
TYSON FOODS INC-CL A
NYSE:TSN (1/28/2025, 8:08:49 PM)
After market: 56.9612 +0.48 (+0.85%)56.48
-1.58 (-2.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change-0.21%
Ins Owners1.35%
Ins Owner Change3.05%
Market Cap20.12B
Analysts69.41
Price Target66.82 (18.31%)
Short Float %1.81%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend1.92
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)1.75%
PT rev (3m)5.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 15.93 | ||
| P/S | 0.38 | ||
| P/FCF | 13.8 | ||
| P/OCF | 7.77 | ||
| P/B | 1.09 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)3.1
EY5.49%
EPS(NY)3.55
Fwd EY6.28%
FCF(TTM)4.09
FCFY7.25%
OCF(TTM)7.27
OCFY12.88%
SpS149.67
BVpS51.63
TBVpS7.57
PEG (NY)1.27
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 | 3.13 |
F-Score7
WACC7.37%
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 Year0.74%
Revenue Next 2Y1.2%
Revenue Next 3Y1.58%
Revenue Next 5Y1.64%
EBIT growth 1Y121.11%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year97.11%
EBIT Next 3Y31.81%
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%