TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
53.98 USD
-0.32 (-0.59%)
54.45 USD
+0.47 (+0.87%)
Taking everything into account, TSN scores 5 out of 10 in our fundamental rating. TSN was compared to 86 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 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 has a Return On Assets (1.29%) which is in line with its industry peers.
TSN has a Return On Equity of 2.62%. This is comparable to the rest of the industry: TSN outperforms 46.51% of its industry peers.
The Return On Invested Capital of TSN (3.46%) 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 29.14%.
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
With a Profit Margin value of 0.87%, TSN perfoms like the industry average, outperforming 45.35% 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 (2.72%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TSN has declined.
The Gross Margin of TSN (6.57%) is worse than 79.07% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSN 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.
The debt/assets ratio for TSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.07 indicates that TSN is not in any danger for bankruptcy at the moment.
The Altman-Z score of TSN (3.07) is better than 69.77% of its industry peers.
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 has a better Debt to FCF ratio (7.50) than 67.44% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that TSN is not too dependend on debt financing.
TSN's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. TSN outperforms 46.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.5
WACC6.91%
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.
The Current ratio of TSN (1.55) is comparable to the rest of the industry.
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's Quick ratio of 0.66 is on the low side compared to the rest of the industry. TSN is outperformed by 70.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.90%, which is quite impressive.
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.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.12%.
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.
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
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
Based on the Price/Earnings ratio of 13.10, the valuation of TSN can be described as correct.
Based on the Price/Earnings ratio, TSN is valued a bit cheaper than the industry average as 73.26% of the companies are valued more expensively.
TSN is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.07, TSN is valued correctly.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 73.26% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. TSN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 61.63% of the companies are valued more expensively.
70.93% of the companies in the same industry are more expensive than TSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.32 | ||
| EV/EBITDA | 9.43 |
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
TSN has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.16, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP147.05%
EPS Next 2Y6.01%
EPS Next 3Y16.35%
53.98
-0.32 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change-0.23%
Ins Owners1.32%
Ins Owner Change-0.09%
Market Cap19.20B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target63.66 (17.93%)
Short Float %3.27%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 | 13.1 | ||
| Fwd PE | 14.07 | ||
| P/S | 0.35 | ||
| P/FCF | 16.32 | ||
| P/OCF | 8.91 | ||
| P/B | 1.06 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)4.12
EY7.63%
EPS(NY)3.84
Fwd EY7.11%
FCF(TTM)3.31
FCFY6.13%
OCF(TTM)6.06
OCFY11.22%
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 | 3.07 |
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 13.1 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%.