TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSN. TSN was compared to 91 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 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.
In the past year TSN had a positive cash flow from operations.
Of the past 5 years TSN 4 years were profitable.
Each year in the past 5 years TSN had a positive operating cash flow.
1.2 Ratios
TSN's Return On Assets of 2.52% is in line compared to the rest of the industry. TSN outperforms 47.25% of its industry peers.
TSN's Return On Equity of 4.97% is in line compared to the rest of the industry. TSN outperforms 46.15% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.30%, TSN is in line with its industry, outperforming 52.75% of the companies in the same industry.
TSN had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 28.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.97% | ||
| ROIC | 4.3% |
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
TSN's Profit Margin of 1.70% is in line compared to the rest of the industry. TSN outperforms 50.55% of its industry peers.
TSN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 3.28%, TSN is in line with its industry, outperforming 49.45% of the companies in the same industry.
In the last couple of years the Operating Margin of TSN has declined.
With a Gross Margin value of 7.14%, TSN is not doing good in the industry: 79.12% 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 | 3.28% | ||
| PM (TTM) | 1.7% | ||
| GM | 7.14% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
TSN has about the same amout of 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 a worse debt to assets ratio.
2.2 Solvency
TSN has an Altman-Z score of 3.14. 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 3.14, TSN is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
The Debt to FCF ratio of TSN is 7.06, which is on the high side as it means it would take TSN, 7.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.06, TSN is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
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 49.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.6
WACC7.2%
2.3 Liquidity
A Current Ratio of 1.67 indicates that TSN should not have too much problems paying its short term obligations.
TSN's Current ratio of 1.67 is in line compared to the rest of the industry. TSN outperforms 58.24% of its industry peers.
A Quick Ratio of 0.69 indicates that TSN may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, TSN is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.38% over the past year.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 1.39% in the last year.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
EPS 1Y (TTM)110.38%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%48.39%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
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 24.28% on average per year.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y25.32%
EPS Next 2Y16.35%
EPS Next 3Y18.23%
EPS Next 5Y24.28%
Revenue Next Year1.71%
Revenue Next 2Y1.86%
Revenue Next 3Y1.84%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 14.08, TSN is valued correctly.
68.13% of the companies in the same industry are more expensive than TSN, based on the Price/Earnings ratio.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of TSN.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 76.92% of the companies in the same industry.
TSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 63.74% of the companies listed in the same industry.
TSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TSN is cheaper than 72.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 8.78 |
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.
TSN's earnings are expected to grow with 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y16.35%
EPS Next 3Y18.23%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.49%.
Compared to an average industry Dividend Yield of 4.66, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, TSN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
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
75.60% of the earnings are spent on dividend by TSN. This is not a sustainable payout ratio.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.6%
EPS Next 2Y16.35%
EPS Next 3Y18.23%
54.22
-0.42 (-0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change0.01%
Ins Owners1.4%
Ins Owner Change0.37%
Market Cap19.31B
Analysts73.33
Price Target66.61 (22.85%)
Short Float %2.69%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP75.6%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.66%
Min EPS beat(2)10.65%
Max EPS beat(2)28.68%
EPS beat(4)4
Avg EPS beat(4)25.99%
Min EPS beat(4)10.65%
Max EPS beat(4)32.32%
EPS beat(8)7
Avg EPS beat(8)26.68%
EPS beat(12)7
Avg EPS beat(12)5.16%
EPS beat(16)11
Avg EPS beat(16)12.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)0.32%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)-0.71%
PT rev (3m)-1.8%
EPS NQ rev (1m)1.54%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 12.92 | ||
| P/S | 0.36 | ||
| P/FCF | 15.04 | ||
| P/OCF | 8.55 | ||
| P/B | 1.05 | ||
| P/tB | 6.77 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)3.85
EY7.1%
EPS(NY)4.2
Fwd EY7.74%
FCF(TTM)3.6
FCFY6.65%
OCF(TTM)6.34
OCFY11.7%
SpS150.51
BVpS51.65
TBVpS8.01
PEG (NY)0.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.97% | ||
| ROCE | 5.71% | ||
| ROIC | 4.3% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 9.28% | ||
| OM | 3.28% | ||
| PM (TTM) | 1.7% | ||
| GM | 7.14% | ||
| FCFM | 2.39% |
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%
ROICexcg growth 3Y-39.85%
ROICexcg 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 | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 70.75% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.06% | ||
| Profit Quality | 140.48% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.14 |
F-Score8
WACC7.2%
ROIC/WACC0.6
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)110.38%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%48.39%
EPS Next Y25.32%
EPS Next 2Y16.35%
EPS Next 3Y18.23%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
Revenue Next Year1.71%
Revenue Next 2Y1.86%
Revenue Next 3Y1.84%
Revenue Next 5Y2.01%
EBIT growth 1Y67.17%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year103.41%
EBIT Next 3Y33.76%
EBIT Next 5Y27.68%
FCF growth 1Y1251.58%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y1.21%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%