TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
53.66 USD
+0.55 (+1.04%)
53.5 USD
-0.16 (-0.3%)
We assign a fundamental rating of 5 out of 10 to TSN. TSN was compared to 87 industry peers in the Food Products industry. TSN has only an average score on both its financial health and profitability. 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.
In the past year TSN had a positive cash flow from operations.
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
With a Return On Assets value of 1.29%, TSN perfoms like the industry average, outperforming 45.98% of the companies in the same industry.
TSN's Return On Equity of 2.62% is in line compared to the rest of the industry. TSN outperforms 45.98% of its industry peers.
TSN has a Return On Invested Capital of 3.46%. This is comparable to the rest of the industry: TSN outperforms 52.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is significantly below the industry average of 28.37%.
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
With a Profit Margin value of 0.87%, TSN perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
TSN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.72%, TSN is in line with its industry, outperforming 49.43% of the companies in the same industry.
In the last couple of years the Operating Margin of TSN has declined.
With a Gross Margin value of 6.57%, TSN is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
TSN's Gross Margin has declined in the last couple of years.
| 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
TSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TSN has been reduced compared to 5 years ago.
TSN has a better debt/assets ratio than last year.
2.2 Solvency
TSN has an Altman-Z score of 3.06. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TSN (3.06) is better than 68.97% of its industry peers.
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 66.67% 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.
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 | 3.06 |
ROIC/WACC0.5
WACC6.9%
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.
TSN has a Current ratio (1.55) which is in line with its industry peers.
A Quick Ratio of 0.66 indicates that TSN may have some problems paying its short term obligations.
The Quick ratio of TSN (0.66) is worse than 70.11% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -6.55% on average over the past years.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.12%.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
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 25.24% 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 3.14% yearly.
EPS Next Y-6.85%
EPS Next 2Y6.01%
EPS Next 3Y16.35%
EPS Next 5Y25.24%
Revenue Next Year2.34%
Revenue Next 2Y1.66%
Revenue Next 3Y2.06%
Revenue Next 5Y3.14%
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 13.02, the valuation of TSN can be described as correct.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 72.41% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, TSN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.98, the valuation of TSN can be described as correct.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 72.41% of the companies in the same industry.
TSN is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 62.07% of the companies listed in the same industry.
TSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSN is cheaper than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.22 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TSN's earnings are expected to grow with 16.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y16.35%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.17, 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP147.05%
EPS Next 2Y6.01%
EPS Next 3Y16.35%
53.66
+0.55 (+1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change0.83%
Ins Owners1.32%
Ins Owner Change0.08%
Market Cap19.09B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.13 (19.51%)
Short Float %3.17%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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)-2.14%
PT rev (3m)-1.97%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)-5.3%
EPS NY rev (3m)-8.86%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 13.98 | ||
| P/S | 0.35 | ||
| P/FCF | 16.22 | ||
| P/OCF | 8.86 | ||
| P/B | 1.06 | ||
| P/tB | 6.38 | ||
| EV/EBITDA | 9.32 |
EPS(TTM)4.12
EY7.68%
EPS(NY)3.84
Fwd EY7.15%
FCF(TTM)3.31
FCFY6.17%
OCF(TTM)6.06
OCFY11.29%
SpS153.02
BVpS50.83
TBVpS8.41
PEG (NY)N/A
PEG (5Y)N/A
Graham Number68.65
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 | 3.06 |
F-Score6
WACC6.9%
ROIC/WACC0.5
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-6.85%
EPS Next 2Y6.01%
EPS Next 3Y16.35%
EPS Next 5Y25.24%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y0.72%
Revenue growth 5Y4.74%
Sales Q2Q%2.17%
Revenue Next Year2.34%
Revenue Next 2Y1.66%
Revenue Next 3Y2.06%
Revenue Next 5Y3.14%
EBIT growth 1Y-13.74%
EBIT growth 3Y-30.5%
EBIT growth 5Y-16.38%
EBIT Next Year76.25%
EBIT Next 3Y27.24%
EBIT Next 5Y24.79%
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 5 / 10 to TSN.
Can you provide the valuation status for TYSON FOODS INC-CL A?
ChartMill assigns a valuation rating of 5 / 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 13.02 and the Price/Book (PB) ratio is 1.06.
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%.