TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
USA - NASDAQ:TSCO - US8923561067 - Common Stock
55.83 USD
-0.4 (-0.71%)
55.6 USD
-0.23 (-0.41%)
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making TSCO a very profitable company, without any liquidiy or solvency issues. TSCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year TSCO was profitable.
In the past year TSCO had a positive cash flow from operations.
In the past 5 years TSCO has always been profitable.
TSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSCO has a Return On Assets of 10.30%. This is amongst the best in the industry. TSCO outperforms 84.43% of its industry peers.
With an excellent Return On Equity value of 43.66%, TSCO belongs to the best of the industry, outperforming 94.26% of the companies in the same industry.
TSCO's Return On Invested Capital of 14.63% is amongst the best of the industry. TSCO outperforms 85.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSCO is above the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 43.66% | ||
| ROIC | 14.63% |
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
TSCO's Profit Margin of 7.18% is amongst the best of the industry. TSCO outperforms 83.61% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
TSCO has a better Operating Margin (9.70%) than 83.61% of its industry peers.
In the last couple of years the Operating Margin of TSCO has grown nicely.
TSCO has a Gross Margin (36.41%) which is comparable to the rest of the industry.
TSCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.41% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TSCO is still creating some value.
The number of shares outstanding for TSCO has been reduced compared to 1 year ago.
TSCO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TSCO has an improved debt to assets ratio.
2.2 Solvency
TSCO has an Altman-Z score of 5.15. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.15, TSCO belongs to the top of the industry, outperforming 86.89% of the companies in the same industry.
The Debt to FCF ratio of TSCO is 2.08, which is a good value as it means it would take TSCO, 2.08 years of fcf income to pay off all of its debts.
TSCO has a better Debt to FCF ratio (2.08) than 74.59% of its industry peers.
TSCO has a Debt/Equity ratio of 0.68. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
TSCO has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for TSCO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.57
WACC9.33%
2.3 Liquidity
TSCO has a Current Ratio of 1.28. This is a normal value and indicates that TSCO is financially healthy and should not expect problems in meeting its short term obligations.
TSCO has a Current ratio (1.28) which is in line with its industry peers.
TSCO has a Quick Ratio of 1.28. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.16, TSCO is not doing good in the industry: 90.98% of the companies in the same industry are doing better.
TSCO does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
TSCO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.74%.
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.
Looking at the last year, TSCO shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
Measured over the past years, TSCO shows a quite strong growth in Revenue. The Revenue has been growing by 12.25% on average per year.
EPS 1Y (TTM)-1.74%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%3.05%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%4.55%
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 9.81% yearly.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 6.97% on average per year.
EPS Next Y5.25%
EPS Next 2Y8%
EPS Next 3Y9.01%
EPS Next 5Y9.81%
Revenue Next Year5.23%
Revenue Next 2Y5.85%
Revenue Next 3Y6.26%
Revenue Next 5Y6.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
A Price/Earnings ratio of 27.37 indicates a quite expensive valuation of TSCO.
Compared to the rest of the industry, the Price/Earnings ratio of TSCO indicates a somewhat cheap valuation: TSCO is cheaper than 64.75% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TSCO to the average of the S&P500 Index (27.86), we can say TSCO is valued inline with the index average.
With a Price/Forward Earnings ratio of 23.46, TSCO is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
TSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.37 | ||
| Fwd PE | 23.46 |
4.2 Price Multiples
TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
61.48% of the companies in the same industry are more expensive than TSCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | 15.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TSCO does not grow enough to justify the current Price/Earnings ratio.
TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.22
PEG (5Y)1.61
EPS Next 2Y8%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.64%. Purely for dividend investing, there may be better candidates out there.
TSCO's Dividend Yield is a higher than the industry average which is at 5.68.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
TSCO has been paying a dividend for at least 10 years, so it has a reliable track record.
TSCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.25%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
TSCO pays out 44.10% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP44.1%
EPS Next 2Y8%
EPS Next 3Y9.01%
55.83
-0.4 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.6%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-0.11%
Market Cap29.59B
Analysts74.36
Price Target62.48 (11.91%)
Short Float %7.64%
Short Ratio8.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP44.1%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.19%
Min EPS beat(2)-9.37%
Max EPS beat(2)-1.01%
EPS beat(4)0
Avg EPS beat(4)-4.35%
Min EPS beat(4)-9.37%
Max EPS beat(4)-1.01%
EPS beat(8)2
Avg EPS beat(8)-1.79%
EPS beat(12)3
Avg EPS beat(12)-1.94%
EPS beat(16)6
Avg EPS beat(16)0.45%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.86%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.38%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.52%
Revenue beat(12)1
Avg Revenue beat(12)-2.26%
Revenue beat(16)4
Avg Revenue beat(16)-1.48%
PT rev (1m)0.72%
PT rev (3m)13.1%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)2.26%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.37 | ||
| Fwd PE | 23.46 | ||
| P/S | 1.95 | ||
| P/FCF | 36.07 | ||
| P/OCF | 18.42 | ||
| P/B | 11.88 | ||
| P/tB | 14.15 | ||
| EV/EBITDA | 15.97 |
EPS(TTM)2.04
EY3.65%
EPS(NY)2.38
Fwd EY4.26%
FCF(TTM)1.55
FCFY2.77%
OCF(TTM)3.03
OCFY5.43%
SpS28.58
BVpS4.7
TBVpS3.95
PEG (NY)5.22
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 43.66% | ||
| ROCE | 18.85% | ||
| ROIC | 14.63% | ||
| ROICexc | 15.07% | ||
| ROICexgc | 15.91% | ||
| OM | 9.7% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.41% | ||
| FCFM | 5.41% |
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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 165.18% | ||
| Cap/Sales | 5.19% | ||
| Interest Coverage | 19.71 | ||
| Cash Conversion | 82.55% | ||
| Profit Quality | 75.43% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 5.15 |
F-Score6
WACC9.33%
ROIC/WACC1.57
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)-1.74%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%3.05%
EPS Next Y5.25%
EPS Next 2Y8%
EPS Next 3Y9.01%
EPS Next 5Y9.81%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%4.55%
Revenue Next Year5.23%
Revenue Next 2Y5.85%
Revenue Next 3Y6.26%
Revenue Next 5Y6.97%
EBIT growth 1Y-1.99%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year36.18%
EBIT Next 3Y16.92%
EBIT Next 5Y13.57%
FCF growth 1Y25.03%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y6.1%
OCF growth 3Y7.66%
OCF growth 5Y11.85%