TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD
TSCO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 121 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
TSCO had positive earnings in the past year.
TSCO had a positive operating cash flow in the past year.
TSCO had positive earnings in each of the past 5 years.
In the past 5 years TSCO always reported a positive cash flow from operatings.
1.2 Ratios
TSCO has a Return On Assets of 10.42%. This is amongst the best in the industry. TSCO outperforms 84.30% of its industry peers.
Looking at the Return On Equity, with a value of 48.35%, TSCO belongs to the top of the industry, outperforming 94.21% of the companies in the same industry.
TSCO has a Return On Invested Capital of 14.49%. This is amongst the best in the industry. TSCO outperforms 83.47% of its industry peers.
TSCO had an Average Return On Invested Capital over the past 3 years of 16.60%. This is above the industry average of 12.74%.
| 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
With an excellent Profit Margin value of 7.24%, TSCO belongs to the best of the industry, outperforming 83.47% of the companies in the same industry.
In the last couple of years the Profit Margin of TSCO has grown nicely.
Looking at the Operating Margin, with a value of 9.72%, TSCO belongs to the top of the industry, outperforming 82.64% of the companies in the same industry.
In the last couple of years the Operating Margin of TSCO has grown nicely.
With a Gross Margin value of 36.32%, TSCO perfoms like the industry average, outperforming 49.59% of the companies in the same 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 | 9.72% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSCO is creating some value.
TSCO has less shares outstanding than it did 1 year ago.
TSCO has more 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
An Altman-Z score of 4.92 indicates that TSCO is not in any danger for bankruptcy at the moment.
TSCO's Altman-Z score of 4.92 is amongst the best of the industry. TSCO outperforms 88.43% 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 has a better Debt to FCF ratio (3.45) than 67.77% 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 of 0.94. This is comparable to the rest of the industry: TSCO outperforms 41.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 4.92 |
ROIC/WACC1.5
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.41 indicates that TSCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, TSCO is in line with its industry, outperforming 48.76% 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 90.91% 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.
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)-1.95%
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 10.29% yearly.
TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.99% yearly.
EPS Next Y4.23%
EPS Next 2Y7.32%
EPS Next 3Y8.99%
EPS Next 5Y10.29%
Revenue Next Year4.69%
Revenue Next 2Y5.58%
Revenue Next 3Y6.22%
Revenue Next 5Y6.99%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 24.61, TSCO is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TSCO indicates a somewhat cheap valuation: TSCO is cheaper than 61.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, TSCO is valued at the same level.
TSCO is valuated rather expensively with a Price/Forward Earnings ratio of 21.05.
TSCO's Price/Forward Earnings ratio is in line with the industry average.
TSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.05 |
4.2 Price Multiples
TSCO's Enterprise Value to EBITDA ratio is in line with the industry average.
TSCO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.96 | ||
| EV/EBITDA | 14.86 |
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)5.81
PEG (5Y)1.45
EPS Next 2Y7.32%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.76%.
TSCO's Dividend Yield is a higher than the industry average which is at 5.10.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
43.98% of the earnings are spent on dividend by TSCO. This is a bit on the high side, but may be sustainable.
DP43.98%
EPS Next 2Y7.32%
EPS Next 3Y8.99%
NASDAQ:TSCO (5/22/2025, 12:43:55 PM)
49.4578
-0.58 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.06%
Inst Owner Change1.65%
Ins Owners0.27%
Ins Owner Change-0.03%
Market Cap26.29B
Analysts72.68
Price Target55.24 (11.69%)
Short Float %7.71%
Short Ratio7.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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)-6.21%
PT rev (3m)-6.7%
EPS NQ rev (1m)-4.3%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)-3.69%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)-1.82%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.05 | ||
| P/S | 1.76 | ||
| P/FCF | 42.96 | ||
| P/OCF | 19.05 | ||
| P/B | 11.75 | ||
| P/tB | 14.31 | ||
| EV/EBITDA | 14.86 |
EPS(TTM)2.01
EY4.06%
EPS(NY)2.35
Fwd EY4.75%
FCF(TTM)1.15
FCFY2.33%
OCF(TTM)2.6
OCFY5.25%
SpS28.13
BVpS4.21
TBVpS3.46
PEG (NY)5.81
PEG (5Y)1.45
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 | 4.92 |
F-Score6
WACC9.63%
ROIC/WACC1.5
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 Y4.23%
EPS Next 2Y7.32%
EPS Next 3Y8.99%
EPS Next 5Y10.29%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
Revenue Next Year4.69%
Revenue Next 2Y5.58%
Revenue Next 3Y6.22%
Revenue Next 5Y6.99%
EBIT growth 1Y-2.94%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year38.44%
EBIT Next 3Y17.6%
EBIT Next 5Y13.72%
FCF growth 1Y22.76%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y4.76%
OCF growth 3Y7.66%
OCF growth 5Y11.85%