54.38 USD
+0.31 (+0.57%)
54.1715 USD
-0.21 (-0.38%)
Taking everything into account, TSCO scores 6 out of 10 in our fundamental rating. TSCO was compared to 122 industry peers in the Specialty Retail industry. TSCO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TSCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TSCO had positive earnings in the past year.
In the past year TSCO had a positive cash flow from operations.
Each year in the past 5 years TSCO has been profitable.
Each year in the past 5 years TSCO had a positive operating cash flow.
1.2 Ratios
TSCO has a Return On Assets of 10.16%. This is amongst the best in the industry. TSCO outperforms 86.07% of its industry peers.
TSCO has a better Return On Equity (42.95%) than 94.26% of its industry peers.
TSCO has a better Return On Invested Capital (14.30%) than 84.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TSCO is above the industry average of 11.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.16% | ||
| ROE | 42.95% | ||
| ROIC | 14.3% |
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
Looking at the Profit Margin, with a value of 7.18%, TSCO belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
In the last couple of years the Profit Margin of TSCO has grown nicely.
TSCO has a better Operating Margin (9.66%) than 81.97% of its industry peers.
In the last couple of years the Operating Margin of TSCO has grown nicely.
The Gross Margin of TSCO (36.46%) is comparable to the rest of the industry.
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 | 9.66% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.46% |
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 well above the Cost of Capital (WACC), so TSCO is creating value.
TSCO has less shares outstanding than it did 1 year ago.
TSCO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TSCO has been reduced compared to a year ago.
2.2 Solvency
TSCO has an Altman-Z score of 4.98. 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 4.98, TSCO belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
The Debt to FCF ratio of TSCO is 1.87, which is an excellent value as it means it would take TSCO, only 1.87 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.87, TSCO is doing good in the industry, outperforming 77.05% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that TSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, TSCO perfoms like the industry average, outperforming 49.18% of the companies in the same industry.
Although TSCO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.56
WACC9.16%
2.3 Liquidity
TSCO has a Current Ratio of 1.30. 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 of 1.30. This is comparable to the rest of the industry: TSCO outperforms 50.82% of its industry peers.
A Quick Ratio of 0.14 indicates that TSCO may have some problems paying its short term obligations.
The Quick ratio of TSCO (0.14) is worse than 92.62% of its industry peers.
The current and quick ratio evaluation for TSCO is rather negative, while it does have 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 | 1.3 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.17% over the past year.
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 4.26% in the past 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)1.17%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%9.37%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
3.2 Future
Based on estimates for the next years, TSCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.44% on average per year.
TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.74% yearly.
EPS Next Y5.4%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
EPS Next 5Y9.44%
Revenue Next Year5.15%
Revenue Next 2Y5.84%
Revenue Next 3Y6.18%
Revenue Next 5Y6.74%
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 26.14 indicates a quite expensive valuation of TSCO.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than 66.39% of the companies in the same industry.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 22.83, the valuation of TSCO can be described as rather expensive.
TSCO's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, TSCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
Based on the Price/Free Cash Flow ratio, TSCO is valued a bit cheaper than 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.17 | ||
| EV/EBITDA | 15.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TSCO may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)1.54
EPS Next 2Y8.06%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.68%.
TSCO's Dividend Yield is a higher than the industry average which is at 5.65.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 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
43.76% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
DP43.76%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
54.38
+0.31 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.6%
Inst Owner Change-3.23%
Ins Owners0.27%
Ins Owner Change6.69%
Market Cap28.73B
Revenue(TTM)15.40B
Net Income(TTM)1.11B
Analysts75.9
Price Target64.51 (18.63%)
Short Float %275.82%
Short Ratio6.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend0.88
Dividend Growth(5Y)-8.25%
DP43.76%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.69%
Min EPS beat(2)-1.01%
Max EPS beat(2)-0.36%
EPS beat(4)0
Avg EPS beat(4)-3.98%
Min EPS beat(4)-9.37%
Max EPS beat(4)-0.36%
EPS beat(8)2
Avg EPS beat(8)-1.79%
EPS beat(12)3
Avg EPS beat(12)-1.91%
EPS beat(16)5
Avg EPS beat(16)-0.52%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-2.26%
Min Revenue beat(4)-3.86%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-2.33%
Revenue beat(12)1
Avg Revenue beat(12)-2.25%
Revenue beat(16)3
Avg Revenue beat(16)-1.8%
PT rev (1m)0.26%
PT rev (3m)3.99%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0.1%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 22.83 | ||
| P/S | 1.87 | ||
| P/FCF | 30.17 | ||
| P/OCF | 15.72 | ||
| P/B | 11.17 | ||
| P/tB | 13.22 | ||
| EV/EBITDA | 15.28 |
EPS(TTM)2.08
EY3.82%
EPS(NY)2.38
Fwd EY4.38%
FCF(TTM)1.8
FCFY3.31%
OCF(TTM)3.46
OCFY6.36%
SpS29.14
BVpS4.87
TBVpS4.11
PEG (NY)4.84
PEG (5Y)1.54
Graham Number15.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.16% | ||
| ROE | 42.95% | ||
| ROCE | 18.43% | ||
| ROIC | 14.3% | ||
| ROICexc | 14.64% | ||
| ROICexgc | 15.42% | ||
| OM | 9.66% | ||
| PM (TTM) | 7.18% | ||
| GM | 36.46% | ||
| FCFM | 6.18% |
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%
ROICexgc growth 3Y-8.38%
ROICexgc 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 Turnover1.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.87 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 179.98% | ||
| Cap/Sales | 5.68% | ||
| Interest Coverage | 21.12 | ||
| Cash Conversion | 92.57% | ||
| Profit Quality | 86.18% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 4.98 |
F-Score6
WACC9.16%
ROIC/WACC1.56
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)1.17%
EPS 3Y5.77%
EPS 5Y16.96%
EPS Q2Q%9.37%
EPS Next Y5.4%
EPS Next 2Y8.06%
EPS Next 3Y9.08%
EPS Next 5Y9.44%
Revenue 1Y (TTM)4.26%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%7.23%
Revenue Next Year5.15%
Revenue Next 2Y5.84%
Revenue Next 3Y6.18%
Revenue Next 5Y6.74%
EBIT growth 1Y0.31%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year36.18%
EBIT Next 3Y16.92%
EBIT Next 5Y13.27%
FCF growth 1Y16.19%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y9.53%
OCF growth 3Y7.66%
OCF growth 5Y11.85%
TRACTOR SUPPLY COMPANY / TSCO FAQ
What is the ChartMill fundamental rating of TRACTOR SUPPLY COMPANY (TSCO) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TSCO.
What is the valuation status for TSCO stock?
ChartMill assigns a valuation rating of 4 / 10 to TRACTOR SUPPLY COMPANY (TSCO). This can be considered as Fairly Valued.
How profitable is TRACTOR SUPPLY COMPANY (TSCO) stock?
TRACTOR SUPPLY COMPANY (TSCO) has a profitability rating of 8 / 10.
What is the financial health of TRACTOR SUPPLY COMPANY (TSCO) stock?
The financial health rating of TRACTOR SUPPLY COMPANY (TSCO) is 8 / 10.
Is the dividend of TRACTOR SUPPLY COMPANY sustainable?
The dividend rating of TRACTOR SUPPLY COMPANY (TSCO) is 5 / 10 and the dividend payout ratio is 43.76%.