TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
Overall TSN gets a fundamental rating of 5 out of 10. We evaluated TSN against 89 industry peers in the Food Products industry. TSN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TSN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TSN had positive earnings in the past year.
TSN had a positive operating cash flow in the past year.
TSN had positive earnings in 4 of the past 5 years.
In the past 5 years TSN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TSN (2.82%) is comparable to the rest of the industry.
TSN has a Return On Equity of 5.69%. This is comparable to the rest of the industry: TSN outperforms 50.56% of its industry peers.
TSN has a Return On Invested Capital (4.61%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for TSN is below the industry average of 9.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.69% | ||
| ROIC | 4.61% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.49%
ROIC(5y)7.87%
1.3 Margins
TSN's Profit Margin of 1.96% is in line compared to the rest of the industry. TSN outperforms 47.19% of its industry peers.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin of 3.71%. This is comparable to the rest of the industry: TSN outperforms 49.44% of its industry peers.
TSN's Operating Margin has declined in the last couple of years.
TSN has a worse Gross Margin (7.68%) than 77.53% of its industry peers.
TSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 1.96% | ||
| GM | 7.68% |
OM growth 3Y-34.98%
OM growth 5Y-13.43%
PM growth 3Y-38.58%
PM growth 5Y-20.31%
GM growth 3Y-23.32%
GM growth 5Y-9.16%
2. Health
2.1 Basic Checks
TSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TSN remains at a similar level compared to 1 year ago.
The number of shares outstanding for TSN has been reduced compared to 5 years ago.
The debt/assets ratio for TSN is higher compared to a year ago.
2.2 Solvency
TSN has an Altman-Z score of 3.19. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN's Altman-Z score of 3.19 is fine compared to the rest of the industry. TSN outperforms 71.91% of its industry peers.
The Debt to FCF ratio of TSN is 7.71, which is on the high side as it means it would take TSN, 7.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TSN (7.71) is comparable to the rest of the industry.
TSN has a Debt/Equity ratio of 0.52. This is a neutral value indicating TSN is somewhat dependend on debt financing.
The Debt to Equity ratio of TSN (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.71 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.64
WACC7.22%
2.3 Liquidity
A Current Ratio of 2.11 indicates that TSN has no problem at all paying its short term obligations.
TSN has a Current ratio of 2.11. This is in the better half of the industry: TSN outperforms 65.17% of its industry peers.
A Quick Ratio of 1.04 indicates that TSN should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.04, TSN is doing good in the industry, outperforming 62.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 203.42%, which is quite impressive.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 1.27% in the last year.
TSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
EPS 1Y (TTM)203.42%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%65.22%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%2.28%
3.2 Future
The Earnings Per Share is expected to grow by 24.28% on average over the next years. This is a very strong growth
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.64% yearly.
EPS Next Y22.47%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
EPS Next 5Y24.28%
Revenue Next Year0.94%
Revenue Next 2Y1.22%
Revenue Next 3Y1.63%
Revenue Next 5Y1.64%
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 accelerating.
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
A Price/Earnings ratio of 17.07 indicates a rather expensive valuation of TSN.
64.04% of the companies in the same industry are more expensive than TSN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (27.85), we can say TSN is valued slightly cheaper.
TSN is valuated correctly with a Price/Forward Earnings ratio of 14.84.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 73.03% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than 69.66% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 66.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.97 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
TSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TSN's earnings are expected to grow with 19.16% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y14.77%
EPS Next 3Y19.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.26%, TSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.32, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, TSN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
TSN has been paying a dividend for at least 10 years, so it has a reliable track record.
TSN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 65.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.4%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
60.61
-0.63 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.51%
Inst Owner Change0.53%
Ins Owners1.4%
Ins Owner Change3.45%
Market Cap21.59B
Analysts71.11
Price Target67.92 (12.06%)
Short Float %2.47%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP65.4%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.49%
Min EPS beat(2)28.68%
Max EPS beat(2)32.3%
EPS beat(4)4
Avg EPS beat(4)37.83%
Min EPS beat(4)28.68%
Max EPS beat(4)58.03%
EPS beat(8)6
Avg EPS beat(8)12.23%
EPS beat(12)7
Avg EPS beat(12)5.84%
EPS beat(16)11
Avg EPS beat(16)13.47%
Revenue beat(2)2
Avg Revenue beat(2)0.31%
Min Revenue beat(2)0.29%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.28%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)0.32%
Revenue beat(8)2
Avg Revenue beat(8)-1.76%
Revenue beat(12)5
Avg Revenue beat(12)-1.2%
Revenue beat(16)9
Avg Revenue beat(16)-0.09%
PT rev (1m)0.14%
PT rev (3m)1.64%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)4.93%
EPS NY rev (1m)0.53%
EPS NY rev (3m)7.06%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.07 | ||
| Fwd PE | 14.84 | ||
| P/S | 0.4 | ||
| P/FCF | 16.97 | ||
| P/OCF | 9.3 | ||
| P/B | 1.17 | ||
| P/tB | 7.45 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)3.55
EY5.86%
EPS(NY)4.08
Fwd EY6.74%
FCF(TTM)3.57
FCFY5.89%
OCF(TTM)6.52
OCFY10.75%
SpS150.52
BVpS51.95
TBVpS8.14
PEG (NY)0.76
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 5.69% | ||
| ROCE | 6.12% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.96% | ||
| ROICexgc | 10.24% | ||
| OM | 3.71% | ||
| PM (TTM) | 1.96% | ||
| GM | 7.68% | ||
| FCFM | 2.37% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.49%
ROIC(5y)7.87%
ROICexc(3y)5.69%
ROICexc(5y)8.33%
ROICexgc(3y)12.38%
ROICexgc(5y)20.31%
ROCE(3y)7.31%
ROCE(5y)10.46%
ROICexcg growth 3Y-39.85%
ROICexcg growth 5Y-18%
ROICexc growth 3Y-34.6%
ROICexc growth 5Y-11.67%
OM growth 3Y-34.98%
OM growth 5Y-13.43%
PM growth 3Y-38.58%
PM growth 5Y-20.31%
GM growth 3Y-23.32%
GM growth 5Y-9.16%
F-Score7
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 7.71 | ||
| Debt/EBITDA | 2.89 | ||
| Cap/Depr | 76.29% | ||
| Cap/Sales | 1.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.95% | ||
| Profit Quality | 120.91% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.19 |
F-Score7
WACC7.22%
ROIC/WACC0.64
Cap/Depr(3y)127.55%
Cap/Depr(5y)116.57%
Cap/Sales(3y)3.11%
Cap/Sales(5y)2.94%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)203.42%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%65.22%
EPS Next Y22.47%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%2.28%
Revenue Next Year0.94%
Revenue Next 2Y1.22%
Revenue Next 3Y1.63%
Revenue Next 5Y1.64%
EBIT growth 1Y180.42%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year102.31%
EBIT Next 3Y34.16%
EBIT Next 5Y27.21%
FCF growth 1Y2594.12%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y15.07%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%