TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
54.12 USD
-0.22 (-0.4%)
54.19 USD
+0.07 (+0.13%)
Taking everything into account, TSN scores 5 out of 10 in our fundamental rating. TSN was compared to 89 industry peers in the Food Products industry. While TSN seems to be doing ok healthwise, there are quite some concerns on its profitability. TSN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TSN had positive earnings in the past year.
TSN had a positive operating cash flow in the past year.
TSN had positive earnings in 4 of the past 5 years.
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 49.44% of the companies in the same industry.
With a Return On Equity value of 4.28%, TSN perfoms like the industry average, outperforming 47.19% of the companies in the same industry.
TSN has a Return On Invested Capital of 4.91%. This is comparable to the rest of the industry: TSN outperforms 53.93% of its industry peers.
TSN had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 28.32%.
| 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
Looking at the Profit Margin, with a value of 1.45%, TSN is in line with its industry, outperforming 50.56% of the companies in the same industry.
TSN's Profit Margin has declined in the last couple of years.
The Operating Margin of TSN (3.71%) 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 7.53%. This is in the lower half of the industry: TSN underperforms 75.28% of its industry peers.
TSN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
The number of shares outstanding for TSN remains at a similar level compared to 1 year ago.
TSN has less shares outstanding than it did 5 years ago.
TSN has a worse debt/assets ratio than last year.
2.2 Solvency
TSN has an Altman-Z score of 3.16. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, TSN is doing good in the industry, outperforming 66.29% of the companies in the same industry.
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 better Debt to FCF ratio (6.98) than 71.91% 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 (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.7
WACC6.99%
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.
With a Current ratio value of 1.73, TSN perfoms like the industry average, outperforming 56.18% of the companies in the same industry.
TSN has a Quick Ratio of 1.73. This is a bad value and indicates that TSN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TSN (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.55% over the past year.
TSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.70% yearly.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
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
Based on estimates for the next years, TSN will show a very strong growth in Earnings Per Share. The EPS will grow by 22.65% on average per year.
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 Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue Next Year2.74%
Revenue Next 2Y2.48%
Revenue Next 3Y1.99%
Revenue Next 5Y2.1%
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
TSN is valuated correctly with a Price/Earnings ratio of 13.91.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 71.91% of the companies in the same industry.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 13.36, TSN is valued correctly.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 71.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.36 |
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 69.66% 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 75.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.83 | ||
| EV/EBITDA | 7.98 |
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 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y14.33%
EPS Next 3Y16.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.57%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is a higher than the industry average which is at 5.03.
Compared to an average S&P500 Dividend Yield of 2.38, TSN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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 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.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.65%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
54.12
-0.22 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.77%
Inst Owner Change-0.81%
Ins Owners1.4%
Ins Owner Change-0.03%
Market Cap19.25B
Analysts71.11
Price Target64.85 (19.83%)
Short Float %3.08%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
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)-0.14%
PT rev (3m)-2.65%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)0.7%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0.95%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 13.36 | ||
| P/S | 0.36 | ||
| P/FCF | 14.83 | ||
| P/OCF | 8.61 | ||
| P/B | 1.05 | ||
| P/tB | 6.04 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)3.89
EY7.19%
EPS(NY)4.05
Fwd EY7.49%
FCF(TTM)3.65
FCFY6.74%
OCF(TTM)6.29
OCFY11.62%
SpS152.19
BVpS51.54
TBVpS8.96
PEG (NY)0.55
PEG (5Y)N/A
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%
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 | 0.45 | ||
| 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 | 3.16 |
F-Score8
WACC6.99%
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 Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
Revenue Next Year2.74%
Revenue Next 2Y2.48%
Revenue Next 3Y1.99%
Revenue Next 5Y2.1%
EBIT growth 1Y55.74%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year102.08%
EBIT Next 3Y33.52%
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%