TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSN - US9024941034 - Common Stock
57.14 USD
-0.03 (-0.05%)
57.2134 USD
+0.07 (+0.13%)
Taking everything into account, TSN scores 5 out of 10 in our fundamental rating. TSN was compared to 87 industry peers in the Food Products industry. Both the profitability and the financial health of TSN get a neutral evaluation. Nothing too spectacular is happening here. 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.
TSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TSN (1.29%) is comparable to the rest of the industry.
TSN has a Return On Equity of 2.62%. This is comparable to the rest of the industry: TSN outperforms 45.98% of its industry peers.
TSN has a Return On Invested Capital (3.46%) which is comparable to the rest of the industry.
TSN had an Average Return On Invested Capital over the past 3 years of 3.04%. This is significantly below the industry average of 28.38%.
The 3 year average ROIC (3.04%) for TSN is below the current ROIC(3.46%), indicating increased profibility in the last year.
| 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
TSN has a Profit Margin of 0.87%. This is comparable to the rest of the industry: TSN outperforms 44.83% 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 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.
TSN has a Gross Margin of 6.57%. This is in the lower half of the industry: TSN underperforms 79.31% of its industry peers.
In the last couple of years the Gross Margin of TSN has declined.
| 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.
The number of shares outstanding for TSN has been reduced compared to 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 3.10. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.10, TSN is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
TSN has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as TSN would need 7.50 years to pay back of all of its debts.
TSN's Debt to FCF ratio of 7.50 is fine compared to the rest of the industry. TSN outperforms 68.97% 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 of 0.44. This is comparable to the rest of the industry: TSN outperforms 47.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.5
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.55 indicates that TSN should not have too much problems paying its short term obligations.
TSN's Current ratio of 1.55 is in line compared to the rest of the industry. TSN outperforms 54.02% of its industry peers.
TSN has a Quick Ratio of 1.55. 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 0.66. This is in the lower half of the industry: TSN underperforms 68.97% 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.
Measured over the past years, TSN shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.55% on average per year.
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 2.12% in the last year.
The Revenue has been growing slightly by 4.74% on average over the past years.
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
TSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.24% yearly.
The Revenue is expected to grow by 3.14% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 13.87, which indicates a correct valuation of TSN.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 68.97% of the companies in the same industry.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
A Price/Forward Earnings ratio of 14.89 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 71.26% of the companies listed in the same industry.
TSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
TSN's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 17.27 | ||
| EV/EBITDA | 9.83 |
4.3 Compensation for Growth
TSN's earnings are expected to grow with 16.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y16.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is a higher than the industry average which is at 5.20.
Compared to an average S&P500 Dividend Yield of 2.41, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.64%.
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)3.64%
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%
57.14
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change0.89%
Ins Owners1.32%
Ins Owner Change-0.49%
Market Cap20.33B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.13 (12.23%)
Short Float %3.17%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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)-1.42%
PT rev (3m)-1.11%
EPS NQ rev (1m)5.05%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-5.3%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 14.89 | ||
| P/S | 0.37 | ||
| P/FCF | 17.27 | ||
| P/OCF | 9.43 | ||
| P/B | 1.12 | ||
| P/tB | 6.79 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)4.12
EY7.21%
EPS(NY)3.84
Fwd EY6.72%
FCF(TTM)3.31
FCFY5.79%
OCF(TTM)6.06
OCFY10.6%
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 | 3.1 |
F-Score6
WACC6.91%
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 13.87 and the Price/Book (PB) ratio is 1.12.
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%.