TYSON FOODS INC-CL A (TSN)
US9024941034 - Common Stock
Overall TSN gets a fundamental rating of 5 out of 10. We evaluated TSN against 90 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
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
TSN's Return On Assets of 2.16% is in line compared to the rest of the industry. TSN outperforms 46.07% of its industry peers.
TSN has a Return On Equity (4.35%) which is in line with its industry peers.
TSN has a Return On Invested Capital (4.00%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TSN is below the industry average of 8.93%.
| 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.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin (3.22%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TSN has declined.
TSN has a Gross Margin of 7.33%. This is in the lower half of the industry: TSN underperforms 77.53% 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
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.
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.
With a decent Altman-Z score value of 3.19, TSN is doing good in the industry, outperforming 71.91% of the companies in the same industry.
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.
TSN's Debt to FCF ratio of 6.69 is fine compared to the rest of the industry. TSN outperforms 60.67% of its industry peers.
TSN has a Debt/Equity ratio of 0.53. This is a neutral value indicating TSN is somewhat dependend on debt financing.
TSN has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.54
WACC7.43%
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.
TSN has a better Current ratio (2.04) than 64.04% of its industry peers.
A Quick Ratio of 0.95 indicates that TSN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, TSN is in line with its industry, outperforming 55.06% of the companies in the same industry.
| 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.
TSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.70% yearly.
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 0.81% 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)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 30.12% on average per year.
Based on estimates for the next years, TSN will show a small growth in Revenue. The Revenue will grow by 3.09% on average per year.
EPS Next Y13.93%
EPS Next 2Y22.99%
EPS Next 3Y24.34%
EPS Next 5Y30.12%
Revenue Next Year1.76%
Revenue Next 2Y2.07%
Revenue Next 3Y2.19%
Revenue Next 5Y3.09%
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
TSN is valuated rather expensively with a Price/Earnings ratio of 20.57.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 62.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (28.96), we can say TSN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.06, TSN is valued on the expensive side.
68.54% 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 (23.82), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.06 |
4.2 Price Multiples
TSN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TSN is cheaper than 69.66% of the companies in the same industry.
TSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSN is cheaper than 70.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.56 | ||
| EV/EBITDA | 9.85 |
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 24.34% in the coming years.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y22.99%
EPS Next 3Y24.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.16%, TSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.80, TSN pays a bit more dividend than its industry peers.
TSN's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP85.5%
EPS Next 2Y22.99%
EPS Next 3Y24.34%
TYSON FOODS INC-CL A
NYSE:TSN (11/21/2024, 8:04:00 PM)
After market: 63.77 0 (0%)63.77
+0.52 (+0.82%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap22.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.57 | ||
| Fwd PE | 18.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 4.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.22% | ||
| PM (TTM) | 1.5% | ||
| GM | 7.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)133.08%
EPS 3Y-27.93%
EPS 5Y
EPS Q2Q%
EPS Next Y13.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.81%
Revenue growth 3Y4.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y