TRACTOR SUPPLY COMPANY (TSCO)
US8923561067 - Common Stock
We assign a fundamental rating of 5 out of 10 to TSCO. TSCO was compared to 126 industry peers in the Specialty Retail industry. TSCO has an excellent profitability rating, but there are some minor concerns on its financial health. TSCO is valied quite expensively at the moment, while it does show 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.
In the past 5 years TSCO has always been profitable.
Each year in the past 5 years TSCO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.05%, TSCO belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
With an excellent Return On Equity value of 51.50%, TSCO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
TSCO has a Return On Invested Capital of 16.32%. This is amongst the best in the industry. TSCO outperforms 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 51.5% | ||
| ROIC | 16.33% |
ROA(3y)12.57%
ROA(5y)11.79%
ROE(3y)51.54%
ROE(5y)45.88%
ROIC(3y)17.41%
ROIC(5y)16.4%
1.3 Margins
The Profit Margin of TSCO (7.61%) is better than 82.54% of its industry peers.
In the last couple of years the Profit Margin of TSCO has grown nicely.
TSCO has a better Operating Margin (10.16%) than 83.33% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (35.92%) which is in line with 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 | 10.16% | ||
| PM (TTM) | 7.61% | ||
| GM | 35.92% |
OM growth 3Y0.41%
OM growth 5Y2.74%
PM growth 3Y2.55%
PM growth 5Y2.5%
GM growth 3Y0.46%
GM growth 5Y1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TSCO is creating value.
Compared to 1 year ago, TSCO has less shares outstanding
Compared to 5 years ago, TSCO has less shares outstanding
TSCO has a worse debt/assets ratio than last year.
2.2 Solvency
TSCO has an Altman-Z score of 5.66. 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 5.66, TSCO belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
The Debt to FCF ratio of TSCO is 3.04, which is a good value as it means it would take TSCO, 3.04 years of fcf income to pay off all of its debts.
TSCO has a Debt to FCF ratio of 3.04. This is in the better half of the industry: TSCO outperforms 64.29% of its industry peers.
TSCO has a Debt/Equity ratio of 0.82. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
The Debt to Equity ratio of TSCO (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 3.04 | ||
| Altman-Z | 5.66 |
ROIC/WACC1.81
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.50 indicates that TSCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, TSCO is in line with its industry, outperforming 50.79% of the companies in the same industry.
TSCO has a Quick Ratio of 1.50. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
TSCO has a Quick ratio of 0.28. This is in the lower half of the industry: TSCO underperforms 76.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
TSCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.91%.
The Earnings Per Share has been growing by 18.49% on average over the past years. This is quite good.
Looking at the last year, TSCO shows a small growth in Revenue. The Revenue has grown by 2.47% in the last year.
The Revenue has been growing by 12.97% on average over the past years. This is quite good.
EPS 1Y (TTM)3.91%
EPS 3Y13.67%
EPS 5Y18.49%
EPS growth Q2Q-6.17%
Revenue 1Y (TTM)2.47%
Revenue growth 3Y11.08%
Revenue growth 5Y12.97%
Revenue growth Q2Q-8.65%
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 9.96% yearly.
TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.12% yearly.
EPS Next Y3.35%
EPS Next 2Y6.77%
EPS Next 3Y8.04%
EPS Next 5Y9.96%
Revenue Next Year2.77%
Revenue Next 2Y4.47%
Revenue Next 3Y5.12%
Revenue Next 5Y6.12%
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.
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
Based on the Price/Earnings ratio of 27.15, the valuation of TSCO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TSCO is on the same level as its industry peers.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.84.
Based on the Price/Forward Earnings ratio of 26.27, the valuation of TSCO can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
The average S&P500 Price/Forward Earnings ratio is at 21.35. TSCO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.15 | ||
| Fwd PE | 26.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSCO is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSCO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.96 | ||
| EV/EBITDA | 16.02 |
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)8.11
PEG (5Y)1.47
EPS Next 2Y6.77%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.66%. 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 3.47.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of TSCO grows each year by 28.18%, which is quite nice.
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)28.18%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
TSCO pays out 40.61% of its income as dividend. This is a bit on the high side, but may be sustainable.
TSCO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.61%
EPS Next 2Y6.77%
EPS Next 3Y8.04%
TRACTOR SUPPLY COMPANY
NASDAQ:TSCO (4/26/2024, 7:20:45 PM)
After market: 273.9 0 (0%)273.9
+8.64 (+3.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap29.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.15 | ||
| Fwd PE | 26.27 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.11
PEG (5Y)1.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.05% | ||
| ROE | 51.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.16% | ||
| PM (TTM) | 7.61% | ||
| GM | 35.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.91%
EPS 3Y13.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.47%
Revenue growth 3Y11.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y