TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD
Taking everything into account, TSCO scores 5 out of 10 in our fundamental rating. TSCO was compared to 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. While showing a medium growth rate, TSCO is valued expensive at the moment.
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.
Each year in the past 5 years TSCO had a positive operating cash flow.
1.2 Ratios
TSCO's Return On Assets of 10.42% is amongst the best of 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's Return On Invested Capital of 14.49% is amongst the best of 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 13.08%.
| 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
TSCO has a better Profit Margin (7.24%) than 84.30% of its industry peers.
TSCO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.72%, TSCO belongs to the top of the industry, outperforming 83.47% of the companies in the same industry.
In the last couple of years the Operating Margin of TSCO has grown nicely.
The Gross Margin of TSCO (36.32%) 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 | 9.72% | ||
| 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 well above the Cost of Capital (WACC), which means it is creating value.
TSCO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TSCO has been increased compared to 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 4.93. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
TSCO has a better Altman-Z score (4.93) than 90.08% of its industry peers.
TSCO has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as TSCO would need 3.45 years to pay back of all of its debts.
TSCO's Debt to FCF ratio of 3.45 is fine compared to the rest of the industry. TSCO outperforms 67.77% of its industry peers.
TSCO has a Debt/Equity ratio of 0.94. This is a neutral value indicating TSCO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.94, TSCO perfoms like the industry average, outperforming 42.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.62
WACC8.95%
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.
The Current ratio of TSCO (1.41) is comparable to the rest of the industry.
A Quick Ratio of 0.17 indicates that TSCO may have some problems paying its short term obligations.
TSCO's Quick ratio of 0.17 is on the low side compared to the rest of the industry. TSCO is outperformed by 90.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The earnings per share for TSCO have decreased by -1.95% in the last year.
The Earnings Per Share has been growing by 16.96% on average over the past years. This is quite good.
TSCO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.07%.
TSCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.25% yearly.
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
The Earnings Per Share is expected to grow by 10.29% on average over the next years. This is quite good.
Based on estimates for the next years, TSCO will show a small growth in Revenue. The Revenue will grow by 6.99% on average per year.
EPS Next Y8.22%
EPS Next 2Y9.47%
EPS Next 3Y9.96%
EPS Next 5Y10.29%
Revenue Next Year5.62%
Revenue Next 2Y6.18%
Revenue Next 3Y6.49%
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
TSCO is valuated quite expensively with a Price/Earnings ratio of 25.05.
Compared to the rest of the industry, the Price/Earnings ratio of TSCO is on the same level as its industry peers.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.75, which is the current average of the S&P500 Index.
TSCO is valuated rather expensively with a Price/Forward Earnings ratio of 20.59.
The rest of the industry has a similar Price/Forward Earnings ratio as TSCO.
TSCO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 20.59 |
4.2 Price Multiples
TSCO's Enterprise Value to EBITDA is on the same level as the industry average.
TSCO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.73 | ||
| EV/EBITDA | 14.95 |
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.
The excellent profitability rating of TSCO may justify a higher PE ratio.
PEG (NY)3.05
PEG (5Y)1.48
EPS Next 2Y9.47%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.83%, TSCO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.39, TSCO pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, TSCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 2Y9.47%
EPS Next 3Y9.96%
50.35
-0.27 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.06%
Inst Owner Change0.25%
Ins Owners0.27%
Ins Owner Change-1.29%
Market Cap26.77B
Analysts72.68
Price Target58.73 (16.64%)
Short Float %6.6%
Short Ratio6.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)-7.48%
Min EPS beat(2)-9.77%
Max EPS beat(2)-5.19%
EPS beat(4)0
Avg EPS beat(4)-4.66%
Min EPS beat(4)-9.77%
Max EPS beat(4)-1.81%
EPS beat(8)2
Avg EPS beat(8)-2.23%
EPS beat(12)3
Avg EPS beat(12)-2%
EPS beat(16)7
Avg EPS beat(16)0.85%
Revenue beat(2)0
Avg Revenue beat(2)-3.14%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)-2.27%
Revenue beat(8)0
Avg Revenue beat(8)-2.86%
Revenue beat(12)1
Avg Revenue beat(12)-2.34%
Revenue beat(16)5
Avg Revenue beat(16)-1.29%
PT rev (1m)-0.48%
PT rev (3m)-0.39%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 20.59 | ||
| P/S | 1.79 | ||
| P/FCF | 43.73 | ||
| P/OCF | 19.39 | ||
| P/B | 11.96 | ||
| P/tB | 14.56 | ||
| EV/EBITDA | 14.95 |
EPS(TTM)2.01
EY3.99%
EPS(NY)2.44
Fwd EY4.86%
FCF(TTM)1.15
FCFY2.29%
OCF(TTM)2.6
OCFY5.16%
SpS28.13
BVpS4.21
TBVpS3.46
PEG (NY)3.05
PEG (5Y)1.48
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 | 4.93 |
F-Score6
WACC8.95%
ROIC/WACC1.62
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 Y8.22%
EPS Next 2Y9.47%
EPS Next 3Y9.96%
EPS Next 5Y10.29%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
Revenue Next Year5.62%
Revenue Next 2Y6.18%
Revenue Next 3Y6.49%
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%