TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
TSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 90 industry peers in the Food Products industry. While TSN seems to be doing ok healthwise, there are quite some concerns on its 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.
TSN had a positive operating cash flow in the past year.
Of the past 5 years TSN 4 years were profitable.
Each year in the past 5 years TSN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.82%, TSN is in line with its industry, outperforming 47.62% of the companies in the same industry.
With a Return On Equity value of 5.69%, TSN perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
TSN's Return On Invested Capital of 4.61% is in line compared to the rest of the industry. TSN outperforms 44.05% of its industry peers.
TSN had an Average Return On Invested Capital over the past 3 years of 5.49%. This is below the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.69% | ||
| ROIC | 4.61% |
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
TSN's Profit Margin of 1.96% is in line compared to the rest of the industry. TSN outperforms 40.48% of its industry peers.
In the last couple of years the Profit Margin of TSN has declined.
Looking at the Operating Margin, with a value of 3.71%, TSN is in line with its industry, outperforming 47.62% of the companies in the same industry.
In the last couple of years the Operating Margin of TSN has declined.
The Gross Margin of TSN (7.68%) is worse than 77.38% of its industry peers.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 1.96% | ||
| GM | 7.68% |
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.
The number of shares outstanding for TSN remains at a similar level compared to 1 year ago.
TSN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.19 indicates that TSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, TSN is in the better half of the industry, outperforming 72.62% of the companies in the same industry.
The Debt to FCF ratio of TSN is 7.71, which is on the high side as it means it would take TSN, 7.71 years of fcf income to pay off all of its debts.
TSN has a Debt to FCF ratio of 7.71. This is comparable to the rest of the industry: TSN outperforms 54.76% of its industry peers.
TSN has a Debt/Equity ratio of 0.52. This is a neutral value indicating TSN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, TSN is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.63
WACC7.26%
2.3 Liquidity
TSN has a Current Ratio of 2.11. This indicates that TSN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TSN (2.11) is better than 61.90% of its industry peers.
A Quick Ratio of 1.04 indicates that TSN should not have too much problems paying its short term obligations.
TSN's Quick ratio of 1.04 is in line compared to the rest of the industry. TSN outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 203.42% 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 1.27% in the last year.
TSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
EPS 1Y (TTM)203.42%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%65.22%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%2.28%
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
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 Y21.61%
EPS Next 2Y14.55%
EPS Next 3Y19.5%
EPS Next 5Y24.28%
Revenue Next Year0.96%
Revenue Next 2Y1.18%
Revenue Next 3Y1.63%
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.
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
A Price/Earnings ratio of 17.24 indicates a rather expensive valuation of TSN.
Based on the Price/Earnings ratio, TSN is valued a bit cheaper than 61.90% of the companies in the same industry.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (29.01), we can say TSN is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.04 indicates a correct valuation of TSN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (22.40), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.04 |
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 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TSN is valued a bit cheaper than the industry average as 65.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.13 | ||
| EV/EBITDA | 8.69 |
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.
A more expensive valuation may be justified as TSN's earnings are expected to grow with 19.50% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y14.55%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.38%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is a higher than the industry average which is at 3.91.
TSN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 65.40% 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.
DP65.4%
EPS Next 2Y14.55%
EPS Next 3Y19.5%
NYSE:TSN (2/28/2025, 3:05:09 PM)
61.19
+0.7 (+1.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.51%
Inst Owner Change0.45%
Ins Owners1.4%
Ins Owner Change3.45%
Market Cap21.80B
Analysts68.89
Price Target67.83 (10.85%)
Short Float %2.31%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.38% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP65.4%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.49%
Min EPS beat(2)28.68%
Max EPS beat(2)32.3%
EPS beat(4)4
Avg EPS beat(4)37.83%
Min EPS beat(4)28.68%
Max EPS beat(4)58.03%
EPS beat(8)6
Avg EPS beat(8)12.23%
EPS beat(12)7
Avg EPS beat(12)5.84%
EPS beat(16)11
Avg EPS beat(16)13.47%
Revenue beat(2)2
Avg Revenue beat(2)0.31%
Min Revenue beat(2)0.29%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)0.32%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)-1.2%
Revenue beat(16)9
Avg Revenue beat(16)-0.09%
PT rev (1m)1.5%
PT rev (3m)3.27%
EPS NQ rev (1m)7.3%
EPS NQ rev (3m)10.48%
EPS NY rev (1m)6.31%
EPS NY rev (3m)6.74%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 15.04 | ||
| P/S | 0.41 | ||
| P/FCF | 17.13 | ||
| P/OCF | 9.39 | ||
| P/B | 1.18 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 8.69 |
EPS(TTM)3.55
EY5.8%
EPS(NY)4.07
Fwd EY6.65%
FCF(TTM)3.57
FCFY5.84%
OCF(TTM)6.52
OCFY10.65%
SpS150.52
BVpS51.95
TBVpS8.14
PEG (NY)0.8
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.69% | ||
| ROCE | 6.12% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.96% | ||
| ROICexgc | 10.24% | ||
| OM | 3.71% | ||
| PM (TTM) | 1.96% | ||
| GM | 7.68% | ||
| FCFM | 2.37% |
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 | 0.52 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 76.29% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.95% | ||
| Profit Quality | 120.91% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.19 |
F-Score7
WACC7.26%
ROIC/WACC0.63
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)203.42%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%65.22%
EPS Next Y21.61%
EPS Next 2Y14.55%
EPS Next 3Y19.5%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%2.28%
Revenue Next Year0.96%
Revenue Next 2Y1.18%
Revenue Next 3Y1.63%
Revenue Next 5Y1.64%
EBIT growth 1Y180.42%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year101.39%
EBIT Next 3Y31.1%
EBIT Next 5Y27.69%
FCF growth 1Y2594.12%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y15.07%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%