TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 120 industry peers in the Specialty Retail industry. While TSCO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TSCO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSCO was profitable.
TSCO had a positive operating cash flow in the past year.
Each year in the past 5 years TSCO has been profitable.
In the past 5 years TSCO always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.42%, TSCO belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TSCO has a Return On Equity of 48.35%. This is amongst the best in the industry. TSCO outperforms 93.33% of its industry peers.
TSCO's Return On Invested Capital of 14.49% is amongst the best of the industry. TSCO outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 13.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 48.35% | ||
| ROIC | 14.49% |
ROA(3y)12.04%
ROA(5y)11.91%
ROE(3y)51.11%
ROE(5y)48.41%
ROIC(3y)16.6%
ROIC(5y)16.64%
1.3 Margins
The Profit Margin of TSCO (7.24%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
The Operating Margin of TSCO (9.72%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of TSCO has grown nicely.
TSCO's Gross Margin of 36.32% is in line compared to the rest of the industry. TSCO outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of TSCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.72% | ||
| PM (TTM) | 7.24% | ||
| GM | 36.32% |
OM growth 3Y-1.33%
OM growth 5Y2.07%
PM growth 3Y-1.88%
PM growth 5Y1.9%
GM growth 3Y1.02%
GM growth 5Y1.07%
2. Health
2.1 Basic Checks
TSCO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TSCO has been reduced compared to 1 year ago.
The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
The debt/assets ratio for TSCO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.97 indicates that TSCO is not in any danger for bankruptcy at the moment.
TSCO has a Altman-Z score of 4.97. This is amongst the best in the industry. TSCO outperforms 86.67% of its industry peers.
The Debt to FCF ratio of TSCO is 3.45, which is a good value as it means it would take TSCO, 3.45 years of fcf income to pay off all of its debts.
TSCO's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. TSCO outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that TSCO is somewhat dependend on debt financing.
TSCO has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 4.97 |
ROIC/WACC1.55
WACC9.36%
2.3 Liquidity
TSCO has a Current Ratio of 1.41. This is a normal value and indicates that TSCO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.41, TSCO perfoms like the industry average, outperforming 50.83% of the companies in the same industry.
A Quick Ratio of 0.17 indicates that TSCO may have some problems paying its short term obligations.
The Quick ratio of TSCO (0.17) is worse than 92.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
TSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.95%.
Measured over the past years, TSCO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.96% on average per year.
The Revenue has been growing slightly by 2.07% in the past year.
The Revenue has been growing by 12.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-1.95%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-7.1%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
3.2 Future
TSCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.51% yearly.
The Revenue is expected to grow by 6.86% on average over the next years.
EPS Next Y4%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
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 decreasing.
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
A Price/Earnings ratio of 25.74 indicates a quite expensive valuation of TSCO.
The rest of the industry has a similar Price/Earnings ratio as TSCO.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.05, TSCO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
When comparing the Price/Forward Earnings ratio of TSCO to the average of the S&P500 Index (22.39), we can say TSCO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 22.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.82 | ||
| EV/EBITDA | 15.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.44
PEG (5Y)1.52
EPS Next 2Y7.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.79%.
Compared to an average industry Dividend Yield of 5.17, TSCO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, TSCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
TSCO has paid a dividend for at least 10 years, which is a reliable track record.
TSCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-8.25%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
TSCO pays out 43.98% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.98%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
51.74
+0.43 (+0.84%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.06%
Inst Owner Change1.64%
Ins Owners0.27%
Ins Owner Change-0.03%
Market Cap27.43B
Analysts72.82
Price Target55.25 (6.78%)
Short Float %8.61%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.98%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.28%
Min EPS beat(2)-9.37%
Max EPS beat(2)-5.19%
EPS beat(4)0
Avg EPS beat(4)-4.56%
Min EPS beat(4)-9.37%
Max EPS beat(4)-1.81%
EPS beat(8)2
Avg EPS beat(8)-2.18%
EPS beat(12)3
Avg EPS beat(12)-1.97%
EPS beat(16)7
Avg EPS beat(16)0.88%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-2.27%
Revenue beat(8)0
Avg Revenue beat(8)-2.84%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)5
Avg Revenue beat(16)-1.28%
PT rev (1m)-5.93%
PT rev (3m)-6.38%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)-3.9%
EPS NY rev (3m)-4.14%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.74 | ||
| Fwd PE | 22.05 | ||
| P/S | 1.83 | ||
| P/FCF | 44.82 | ||
| P/OCF | 19.88 | ||
| P/B | 12.25 | ||
| P/tB | 14.93 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)2.01
EY3.88%
EPS(NY)2.35
Fwd EY4.53%
FCF(TTM)1.15
FCFY2.23%
OCF(TTM)2.6
OCFY5.03%
SpS28.21
BVpS4.22
TBVpS3.47
PEG (NY)6.44
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.42% | ||
| ROE | 48.35% | ||
| ROCE | 18.67% | ||
| ROIC | 14.49% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 15.77% | ||
| OM | 9.72% | ||
| PM (TTM) | 7.24% | ||
| GM | 36.32% | ||
| FCFM | 4.09% |
ROA(3y)12.04%
ROA(5y)11.91%
ROE(3y)51.11%
ROE(5y)48.41%
ROIC(3y)16.6%
ROIC(5y)16.64%
ROICexc(3y)17.31%
ROICexc(5y)18.77%
ROICexgc(3y)18.04%
ROICexgc(5y)19.31%
ROCE(3y)21.39%
ROCE(5y)21.43%
ROICexcg growth 3Y-8.38%
ROICexcg growth 5Y1.67%
ROICexc growth 3Y-9.19%
ROICexc growth 5Y1.55%
OM growth 3Y-1.33%
OM growth 5Y2.07%
PM growth 3Y-1.88%
PM growth 5Y1.9%
GM growth 3Y1.02%
GM growth 5Y1.07%
F-Score6
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 165.92% | ||
| Cap/Sales | 5.14% | ||
| Interest Coverage | 20.67 | ||
| Cash Conversion | 72.02% | ||
| Profit Quality | 56.55% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 4.97 |
F-Score6
WACC9.36%
ROIC/WACC1.55
Cap/Depr(3y)197.52%
Cap/Depr(5y)192.11%
Cap/Sales(3y)5.3%
Cap/Sales(5y)4.72%
Profit Quality(3y)54.61%
Profit Quality(5y)72.39%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.95%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%-7.1%
EPS Next Y4%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
EBIT growth 1Y-2.94%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year35.19%
EBIT Next 3Y16.87%
EBIT Next 5Y13.39%
FCF growth 1Y22.76%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y4.76%
OCF growth 3Y7.66%
OCF growth 5Y11.85%