TRACTOR SUPPLY COMPANY (TSCO) Stock Fundamental Analysis
NASDAQ:TSCO - Nasdaq - US8923561067 - Common Stock - Currency: USD
TSCO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. TSCO scores excellent on profitability, but 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
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.
In the past 5 years TSCO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TSCO (10.42%) is better than 83.47% of its industry peers.
The Return On Equity of TSCO (48.35%) is better than 93.39% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for TSCO is above the industry average of 13.07%.
| 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
The Profit Margin of TSCO (7.24%) is better than 83.47% of its industry peers.
TSCO's Profit Margin has improved in the last couple of years.
TSCO has a Operating Margin of 9.72%. This is amongst the best in the industry. TSCO outperforms 83.47% of its industry peers.
TSCO's Operating Margin has improved in the last couple of years.
TSCO has a Gross Margin (36.32%) which is comparable to the rest of the industry.
TSCO's Gross Margin has been stable in the last couple of years.
| 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
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.
The number of shares outstanding for TSCO has been reduced compared to 5 years ago.
Compared to 1 year ago, TSCO has an improved debt to assets ratio.
2.2 Solvency
TSCO has an Altman-Z score of 5.21. This indicates that TSCO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.21, TSCO belongs to the best of the industry, outperforming 88.43% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.45, TSCO is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
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 43.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.54
WACC9.39%
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 53.72% of the companies in the same industry.
TSCO has a Quick Ratio of 1.41. This is a bad value and indicates that TSCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TSCO (0.17) is worse than 91.74% 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.
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
The Earnings Per Share is expected to grow by 9.51% on average over the next years. This is quite good.
TSCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y4%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 28.25, the valuation of TSCO can be described as expensive.
Based on the Price/Earnings ratio, TSCO is valued a bit cheaper than the industry average as 61.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TSCO is valued at the same level.
The Price/Forward Earnings ratio is 24.21, which indicates a rather expensive current valuation of TSCO.
TSCO's Price/Forward Earnings is on the same level as the industry average.
TSCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.21 |
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.
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 | 49.19 | ||
| EV/EBITDA | 16.87 |
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.
TSCO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.07
PEG (5Y)1.67
EPS Next 2Y7.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
TSCO has a Yearly Dividend Yield of 1.60%.
Compared to an average industry Dividend Yield of 4.86, TSCO pays a better dividend. On top of this TSCO pays more dividend than 80.17% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, TSCO is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
5.2 History
The dividend of TSCO decreases each year by -8.25%.
TSCO has been paying a dividend for at least 10 years, so it has 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 2Y7.24%
EPS Next 3Y8.99%
56.79
-0.65 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.21%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-0.03%
Market Cap30.11B
Analysts72.82
Price Target55.25 (-2.71%)
Short Float %7.81%
Short Ratio6.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.6% |
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)0.01%
PT rev (3m)-6.2%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-4.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.25 | ||
| Fwd PE | 24.21 | ||
| P/S | 2.01 | ||
| P/FCF | 49.19 | ||
| P/OCF | 21.82 | ||
| P/B | 13.45 | ||
| P/tB | 16.38 | ||
| EV/EBITDA | 16.87 |
EPS(TTM)2.01
EY3.54%
EPS(NY)2.35
Fwd EY4.13%
FCF(TTM)1.15
FCFY2.03%
OCF(TTM)2.6
OCFY4.58%
SpS28.21
BVpS4.22
TBVpS3.47
PEG (NY)7.07
PEG (5Y)1.67
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 | 5.21 |
F-Score6
WACC9.39%
ROIC/WACC1.54
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%
EPS Next 2Y7.24%
EPS Next 3Y8.99%
EPS Next 5Y9.51%
Revenue 1Y (TTM)2.07%
Revenue growth 3Y5.34%
Revenue growth 5Y12.25%
Sales Q2Q%2.12%
Revenue Next Year4.65%
Revenue Next 2Y5.56%
Revenue Next 3Y6.22%
Revenue Next 5Y6.86%
EBIT growth 1Y-2.94%
EBIT growth 3Y3.95%
EBIT growth 5Y14.58%
EBIT Next Year35.19%
EBIT Next 3Y16.87%
EBIT Next 5Y13.39%
FCF growth 1Y22.76%
FCF growth 3Y7.66%
FCF growth 5Y1.39%
OCF growth 1Y4.76%
OCF growth 3Y7.66%
OCF growth 5Y11.85%