TYSON FOODS INC-CL A (TSN)
US9024941034 - Common Stock
We assign a fundamental rating of 4 out of 10 to TSN. TSN was compared to 92 industry peers in the Food Products industry. The financial health of TSN is average, but there are quite some concerns on its profitability. TSN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TSN was profitable.
In the past year TSN had a positive cash flow from operations.
Of the past 5 years TSN 4 years were profitable.
In the past 5 years TSN always reported a positive cash flow from operatings.
1.2 Ratios
TSN has a Return On Assets of -1.64%. This is in the lower half of the industry: TSN underperforms 60.44% of its industry peers.
Looking at the Return On Equity, with a value of -3.40%, TSN is in line with its industry, outperforming 40.66% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.33%, TSN is in line with its industry, outperforming 46.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is in line with the industry average of 8.76%.
The last Return On Invested Capital (2.33%) for TSN is well below the 3 year average (9.12%), which needs to be investigated, but indicates that TSN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.64% | ||
| ROE | -3.4% | ||
| ROIC | 2.33% |
ROA(3y)5.13%
ROA(5y)5.48%
ROE(3y)10.02%
ROE(5y)11.55%
ROIC(3y)9.12%
ROIC(5y)8.96%
1.3 Margins
With a Operating Margin value of 1.79%, TSN perfoms like the industry average, outperforming 43.96% of the companies in the same industry.
TSN's Operating Margin has declined in the last couple of years.
TSN has a worse Gross Margin (6.00%) than 75.82% of its industry peers.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.79% | ||
| PM (TTM) | N/A | ||
| GM | 6% |
OM growth 3Y-44.06%
OM growth 5Y-27.94%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-26.01%
GM growth 5Y-15.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TSN is still creating some value.
Compared to 1 year ago, TSN has less shares outstanding
TSN has more shares outstanding than it did 5 years ago.
TSN has a worse debt/assets ratio than last year.
2.2 Solvency
TSN has an Altman-Z score of 3.00. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN's Altman-Z score of 3.00 is fine compared to the rest of the industry. TSN outperforms 69.23% of its industry peers.
The Debt to FCF ratio of TSN is 15.72, which is on the high side as it means it would take TSN, 15.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.72, TSN is in line with its industry, outperforming 50.55% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that TSN is somewhat dependend on debt financing.
TSN's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. TSN outperforms 50.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 15.72 | ||
| Altman-Z | 3 |
ROIC/WACC0.32
WACC7.19%
2.3 Liquidity
TSN has a Current Ratio of 1.77. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
TSN has a Current ratio of 1.77. This is in the better half of the industry: TSN outperforms 60.44% of its industry peers.
TSN has a Quick Ratio of 1.77. This is a bad value and indicates that TSN is not financially healthy enough and could expect problems in meeting its short term obligations.
TSN has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for TSN have decreased strongly by -58.22% in the last year.
Measured over the past years, TSN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.40% on average per year.
The Revenue has decreased by -1.39% in the past year.
The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)-58.22%
EPS 3Y-38.72%
EPS 5Y-26.4%
EPS Q2Q%1650%
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y6.98%
Revenue growth 5Y5.71%
Sales Q2Q%-0.46%
3.2 Future
The Earnings Per Share is expected to grow by 51.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.54% on average over the next years.
EPS Next Y100.03%
EPS Next 2Y68.68%
EPS Next 3Y50.63%
EPS Next 5Y51.44%
Revenue Next Year-0.48%
Revenue Next 2Y0.79%
Revenue Next 3Y1.29%
Revenue Next 5Y1.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 33.34, which means the current valuation is very expensive for TSN.
Compared to the rest of the industry, the Price/Earnings ratio of TSN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (24.41), we can say TSN is valued slightly more expensively.
A Price/Forward Earnings ratio of 16.12 indicates a correct valuation of TSN.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 73.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 16.12 |
4.2 Price Multiples
TSN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.16 | ||
| EV/EBITDA | 12.66 |
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.
TSN's earnings are expected to grow with 50.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y68.68%
EPS Next 3Y50.63%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.24%.
Compared to an average industry Dividend Yield of 3.74, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, TSN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of TSN has a limited annual growth rate of 5.22%.
TSN has paid a dividend for at least 10 years, which is 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)5.22%
Div Incr Years12
Div Non Decr Years33
5.3 Sustainability
TSN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-109.92%
EPS Next 2Y68.68%
EPS Next 3Y50.63%
TYSON FOODS INC-CL A
NYSE:TSN (7/26/2024, 7:04:00 PM)
After market: 61.01 0 (0%)61.01
+0.72 (+1.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.34 | ||
| Fwd PE | 16.12 | ||
| 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)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.64% | ||
| ROE | -3.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.79% | ||
| PM (TTM) | N/A | ||
| GM | 6% | ||
| 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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.87 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-58.22%
EPS 3Y-38.72%
EPS 5Y
EPS Q2Q%
EPS Next Y100.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.39%
Revenue growth 3Y6.98%
Revenue growth 5Y
Sales 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