TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - US8923561067 - Common Stock
61.52 USD
-0.09 (-0.15%)
61.52 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TSCO. TSCO was compared to 123 industry peers in the Specialty Retail industry. TSCO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TSCO is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TSCO was profitable.
TSCO had a positive operating cash flow in the past year.
Each year in the past 5 years TSCO has been profitable.
TSCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.30%, TSCO belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
The Return On Equity of TSCO (43.66%) is better than 91.87% of its industry peers.
TSCO has a better Return On Invested Capital (14.63%) than 83.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 11.94%.
| 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 has a Profit Margin of 7.18%. This is amongst the best in the industry. TSCO outperforms 83.74% of its industry peers.
TSCO's Profit Margin has improved in the last couple of years.
TSCO has a better Operating Margin (9.70%) than 83.74% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin of 36.41%. This is comparable to the rest of the industry: TSCO outperforms 51.22% of its industry peers.
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
An Altman-Z score of 5.38 indicates that TSCO is not in any danger for bankruptcy at the moment.
The Altman-Z score of TSCO (5.38) is better than 86.99% of its industry peers.
TSCO has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as TSCO would need 2.08 years to pay back of all of its debts.
TSCO's Debt to FCF ratio of 2.08 is fine compared to the rest of the industry. TSCO outperforms 76.42% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that TSCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, TSCO is in line with its industry, outperforming 45.53% 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 | 0.68 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.57
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.28 indicates that TSCO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.28, TSCO is in line with its industry, outperforming 47.15% of the companies in the same industry.
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.
TSCO's Quick ratio of 0.16 is on the low side compared to the rest of the industry. TSCO is outperformed by 90.24% 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 | 1.28 | ||
| 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%.
TSCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.96% yearly.
The Revenue has been growing slightly by 2.96% in the past year.
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)-1.74%
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 Y5.14%
EPS Next 2Y7.95%
EPS Next 3Y8.96%
EPS Next 5Y9.81%
Revenue Next Year5.22%
Revenue Next 2Y5.88%
Revenue Next 3Y6.26%
Revenue Next 5Y6.97%
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
Based on the Price/Earnings ratio of 30.16, the valuation of TSCO can be described as expensive.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than 60.16% of the companies in the same industry.
TSCO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
With a Price/Forward Earnings ratio of 25.88, TSCO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 25.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TSCO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSCO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.75 | ||
| EV/EBITDA | 17.54 |
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)5.86
PEG (5Y)1.78
EPS Next 2Y7.95%
EPS Next 3Y8.96%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.51%. 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 5.70.
TSCO's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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
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 2Y7.95%
EPS Next 3Y8.96%
61.52
-0.09 (-0.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.12%
Inst Owner Change0.07%
Ins Owners0.27%
Ins Owner Change-0.11%
Market Cap32.60B
Analysts74.36
Price Target62.03 (0.83%)
Short Float %8.07%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)11.44%
PT rev (3m)12.29%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)1.03%
EPS NY rev (3m)0.87%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.16 | ||
| Fwd PE | 25.88 | ||
| P/S | 2.15 | ||
| P/FCF | 39.75 | ||
| P/OCF | 20.3 | ||
| P/B | 13.09 | ||
| P/tB | 15.59 | ||
| EV/EBITDA | 17.54 |
EPS(TTM)2.04
EY3.32%
EPS(NY)2.38
Fwd EY3.86%
FCF(TTM)1.55
FCFY2.52%
OCF(TTM)3.03
OCFY4.93%
SpS28.58
BVpS4.7
TBVpS3.95
PEG (NY)5.86
PEG (5Y)1.78
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 | 5.38 |
F-Score6
WACC9.32%
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 Y5.14%
EPS Next 2Y7.95%
EPS Next 3Y8.96%
EPS Next 5Y9.81%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%4.55%
Revenue Next Year5.22%
Revenue Next 2Y5.88%
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 3Y16.95%
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%