TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
52.68 USD
+0.99 (+1.92%)
52.86 USD
+0.18 (+0.34%)
We assign a fundamental rating of 4 out of 10 to TSN. TSN was compared to 87 industry peers in the Food Products industry. The financial health of TSN is average, but there are quite some concerns on its profitability. TSN has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years TSN 4 years were profitable.
In the past 5 years TSN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.15%, TSN perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
The Return On Equity of TSN (4.28%) is comparable to the rest of the industry.
TSN has a Return On Invested Capital (4.91%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TSN is significantly below the industry average of 28.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROIC | 4.91% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
1.3 Margins
With a Profit Margin value of 1.45%, TSN perfoms like the industry average, outperforming 50.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TSN has declined.
TSN has a Operating Margin of 3.71%. This is comparable to the rest of the industry: TSN outperforms 54.02% of its industry peers.
TSN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 7.53%, TSN is not doing good in the industry: 74.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% |
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.
The number of shares outstanding for TSN has been reduced compared to 5 years ago.
The debt/assets ratio for TSN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.13 indicates that TSN is not in any danger for bankruptcy at the moment.
TSN's Altman-Z score of 3.13 is fine compared to the rest of the industry. TSN outperforms 66.67% of its industry peers.
The Debt to FCF ratio of TSN is 6.98, which is on the high side as it means it would take TSN, 6.98 years of fcf income to pay off all of its debts.
TSN has a Debt to FCF ratio of 6.98. This is in the better half of the industry: TSN outperforms 68.97% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that TSN is not too dependend on debt financing.
TSN has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: TSN outperforms 47.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.7
WACC7%
2.3 Liquidity
TSN has a Current Ratio of 1.73. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
TSN's Current ratio of 1.73 is in line compared to the rest of the industry. TSN outperforms 56.32% of its industry peers.
A Quick Ratio of 0.78 indicates that TSN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.78, TSN is doing worse than 60.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.55%, which is quite impressive.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
The Revenue has been growing slightly by 1.99% in the past 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)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
3.2 Future
The Earnings Per Share is expected to grow by 22.65% 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 2.10% on average per year.
EPS Next Y20.83%
EPS Next 2Y11.68%
EPS Next 3Y14.09%
EPS Next 5Y22.65%
Revenue Next Year2.99%
Revenue Next 2Y2.66%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
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.
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
With a Price/Earnings ratio of 13.54, TSN is valued correctly.
68.97% of the companies in the same industry are more expensive than TSN, based on the Price/Earnings ratio.
TSN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.63, the valuation of TSN can be described as correct.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 74.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, TSN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.63 |
4.2 Price Multiples
73.56% of the companies in the same industry are more expensive than TSN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TSN is valued a bit cheaper than the industry average as 71.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.44 | ||
| EV/EBITDA | 7.72 |
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 14.09% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y11.68%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.87%.
Compared to an average industry Dividend Yield of 5.19, 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 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
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)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 88.65% 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.
DP88.65%
EPS Next 2Y11.68%
EPS Next 3Y14.09%
52.68
+0.99 (+1.92%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change-0.4%
Ins Owners1.32%
Ins Owner Change-0.03%
Market Cap18.74B
Revenue(TTM)54.15B
Net Income(TTM)784.00M
Analysts70
Price Target63.66 (20.84%)
Short Float %3.27%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP88.65%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.8%
Min EPS beat(2)10.65%
Max EPS beat(2)14.96%
EPS beat(4)4
Avg EPS beat(4)21.65%
Min EPS beat(4)10.65%
Max EPS beat(4)32.3%
EPS beat(8)8
Avg EPS beat(8)33.91%
EPS beat(12)8
Avg EPS beat(12)6.65%
EPS beat(16)11
Avg EPS beat(16)9.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)1.4%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-1.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)-1.83%
PT rev (3m)-4.3%
EPS NQ rev (1m)-4.39%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)-3.39%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 13.63 | ||
| P/S | 0.35 | ||
| P/FCF | 14.44 | ||
| P/OCF | 8.38 | ||
| P/B | 1.02 | ||
| P/tB | 5.88 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)3.89
EY7.38%
EPS(NY)3.87
Fwd EY7.34%
FCF(TTM)3.65
FCFY6.93%
OCF(TTM)6.29
OCFY11.94%
SpS152.19
BVpS51.54
TBVpS8.96
PEG (NY)0.65
PEG (5Y)N/A
Graham Number67.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROCE | 6.53% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 10.74% | ||
| OM | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% | ||
| FCFM | 2.4% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
ROICexc(3y)5.73%
ROICexc(5y)8.35%
ROICexgc(3y)12.45%
ROICexgc(5y)20.35%
ROCE(3y)7.36%
ROCE(5y)10.49%
ROICexgc growth 3Y-39.85%
ROICexgc 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-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 69.71% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.66% | ||
| Profit Quality | 165.56% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.13 |
F-Score8
WACC7%
ROIC/WACC0.7
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)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
EPS Next Y20.83%
EPS Next 2Y11.68%
EPS Next 3Y14.09%
EPS Next 5Y22.65%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
Revenue Next Year2.99%
Revenue Next 2Y2.66%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
EBIT growth 1Y55.74%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year106.24%
EBIT Next 3Y32.58%
EBIT Next 5Y27.68%
FCF growth 1Y1224.49%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y0.49%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%
TYSON FOODS INC-CL A / TSN FAQ
What is the fundamental rating for TSN stock?
ChartMill assigns a fundamental rating of 4 / 10 to TSN.
Can you provide the valuation status for TYSON FOODS INC-CL A?
ChartMill assigns a valuation rating of 6 / 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 3 / 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 13.54 and the Price/Book (PB) ratio is 1.02.
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 88.65%.