TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSN - US9024941034 - Common Stock
58.3 USD
+0.25 (+0.43%)
57.7201 USD
-0.58 (-0.99%)
TSN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium 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.
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
With a Return On Assets value of 1.29%, TSN perfoms like the industry average, outperforming 45.98% of the companies in the same industry.
TSN's Return On Equity of 2.62% is in line compared to the rest of the industry. TSN outperforms 45.98% 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 28.38%.
The last Return On Invested Capital (3.46%) for TSN is above the 3 year average (3.04%), which is a sign of increasing profitability.
| 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's Profit Margin of 0.87% is in line compared to the rest of the industry. TSN outperforms 44.83% of its industry peers.
TSN's Profit Margin has declined in the last couple of years.
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 79.31% 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
TSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSN has less shares outstanding
Compared to 1 year ago, TSN has an improved debt to assets ratio.
2.2 Solvency
TSN has an Altman-Z score of 3.11. 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 3.11, 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.
The Debt to Equity ratio of TSN (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.11 |
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.
Looking at the Current ratio, with a value of 1.55, TSN is in line with its industry, outperforming 54.02% of the companies in the same 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.
Looking at the Quick ratio, with a value of 0.66, TSN is doing worse than 68.97% of the companies in the same industry.
| 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.
TSN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.55% yearly.
The Revenue has been growing slightly by 2.12% in the past year.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
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
The Earnings Per Share is expected to grow by 16.57% on average over the next years. This is quite good.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.95% yearly.
EPS Next Y-6.85%
EPS Next 2Y6.01%
EPS Next 3Y11.88%
EPS Next 5Y16.57%
Revenue Next Year2.34%
Revenue Next 2Y1.66%
Revenue Next 3Y1.83%
Revenue Next 5Y1.95%
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
Based on the Price/Earnings ratio of 14.15, 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 70.11% of the companies are valued more expensively.
TSN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.19 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 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
TSN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TSN is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
TSN's Dividend Yield is a higher than the industry average which is at 5.06.
Compared to an average S&P500 Dividend Yield of 2.32, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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
147.05% of the earnings are spent on dividend by TSN. 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 3Y11.88%
58.3
+0.25 (+0.43%)
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 Change2.06%
Market Cap20.58B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.13 (10%)
Short Float %3.17%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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)1.29%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-5.3%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 15.19 | ||
| P/S | 0.38 | ||
| P/FCF | 17.49 | ||
| P/OCF | 9.55 | ||
| P/B | 1.14 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)4.12
EY7.07%
EPS(NY)3.84
Fwd EY6.58%
FCF(TTM)3.33
FCFY5.72%
OCF(TTM)6.1
OCFY10.47%
SpS154.2
BVpS51.23
TBVpS8.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number68.91
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 | 3.11 |
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 3Y11.88%
EPS Next 5Y16.57%
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 3Y1.83%
Revenue Next 5Y1.95%
EBIT growth 1Y-13.74%
EBIT growth 3Y-30.5%
EBIT growth 5Y-16.38%
EBIT Next Year76.25%
EBIT Next 3Y27.16%
EBIT Next 5Y22.4%
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 4 / 10 to TSN.
Can you provide the valuation status for TYSON FOODS INC-CL A?
ChartMill assigns a valuation rating of 4 / 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 14.15 and the Price/Book (PB) ratio is 1.14.
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%.