TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSN. TSN was compared to 91 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. Finally TSN also has an excellent dividend rating.
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.
Each year in the past 5 years TSN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.52%, TSN is in line with its industry, outperforming 47.25% of the companies in the same industry.
With a Return On Equity value of 4.97%, TSN perfoms like the industry average, outperforming 45.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.30%, TSN is in line with its industry, outperforming 52.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is significantly below the industry average of 28.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.97% | ||
| ROIC | 4.3% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
1.3 Margins
TSN's Profit Margin of 1.70% is in line compared to the rest of the industry. TSN outperforms 51.65% of its industry peers.
In the last couple of years the Profit Margin of TSN has declined.
TSN has a Operating Margin (3.28%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TSN has declined.
With a Gross Margin value of 7.14%, TSN is not doing good in the industry: 78.02% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TSN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.28% | ||
| PM (TTM) | 1.7% | ||
| GM | 7.14% |
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.
Compared to 1 year ago, TSN has about the same amount of shares outstanding.
TSN has less shares outstanding than it did 5 years ago.
TSN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that TSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.14, TSN is doing good in the industry, outperforming 68.13% of the companies in the same industry.
The Debt to FCF ratio of TSN is 7.06, which is on the high side as it means it would take TSN, 7.06 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.06, TSN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that TSN is not too dependend on debt financing.
TSN has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.59
WACC7.25%
2.3 Liquidity
TSN has a Current Ratio of 1.67. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.67, TSN perfoms like the industry average, outperforming 58.24% of the companies in the same industry.
A Quick Ratio of 0.69 indicates that TSN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.69, TSN is doing worse than 64.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 110.38% over the past year.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
The Revenue has been growing slightly by 1.39% in the past 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)110.38%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%48.39%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
3.2 Future
Based on estimates for the next years, TSN will show a very strong growth in Earnings Per Share. The EPS will grow by 24.28% on average per year.
Based on estimates for the next years, TSN will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y24.2%
EPS Next 2Y16.54%
EPS Next 3Y19.19%
EPS Next 5Y24.28%
Revenue Next Year1.74%
Revenue Next 2Y1.81%
Revenue Next 3Y1.67%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
TSN is valuated correctly with a Price/Earnings ratio of 13.91.
70.33% 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 (27.51), we can say TSN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.72, TSN is valued correctly.
TSN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 75.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.58. TSN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
63.74% of the companies in the same industry are more expensive than TSN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TSN is valued a bit cheaper than 72.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.86 | ||
| EV/EBITDA | 8.75 |
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 19.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y16.54%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
TSN's Dividend Yield is a higher than the industry average which is at 4.72.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
TSN has paid a dividend for at least 10 years, which is a reliable track record.
TSN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 75.60% 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.
DP75.6%
EPS Next 2Y16.54%
EPS Next 3Y19.19%
NYSE:TSN (7/15/2025, 10:37:08 AM)
53.56
-0.76 (-1.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change0.01%
Ins Owners1.4%
Ins Owner Change0.37%
Market Cap19.08B
Analysts73.33
Price Target66.61 (24.37%)
Short Float %3.14%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP75.6%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.66%
Min EPS beat(2)10.65%
Max EPS beat(2)28.68%
EPS beat(4)4
Avg EPS beat(4)25.99%
Min EPS beat(4)10.65%
Max EPS beat(4)32.32%
EPS beat(8)7
Avg EPS beat(8)26.68%
EPS beat(12)7
Avg EPS beat(12)5.16%
EPS beat(16)11
Avg EPS beat(16)12.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)0.32%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)4
Avg Revenue beat(12)-1.41%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)0%
PT rev (3m)-1.8%
EPS NQ rev (1m)-2.21%
EPS NQ rev (3m)-5.12%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)1.14%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.72 | ||
| P/S | 0.36 | ||
| P/FCF | 14.86 | ||
| P/OCF | 8.45 | ||
| P/B | 1.04 | ||
| P/tB | 6.68 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)3.85
EY7.19%
EPS(NY)4.21
Fwd EY7.86%
FCF(TTM)3.6
FCFY6.73%
OCF(TTM)6.34
OCFY11.84%
SpS150.51
BVpS51.65
TBVpS8.01
PEG (NY)0.57
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.52% | ||
| ROE | 4.97% | ||
| ROCE | 5.71% | ||
| ROIC | 4.3% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 9.28% | ||
| OM | 3.28% | ||
| PM (TTM) | 1.7% | ||
| GM | 7.14% | ||
| FCFM | 2.39% |
ROA(3y)3.05%
ROA(5y)4.71%
ROE(3y)5.74%
ROE(5y)9.58%
ROIC(3y)5.52%
ROIC(5y)7.89%
ROICexc(3y)5.73%
ROICexc(5y)8.35%
ROICexgc(3y)12.45%
ROICexgc(5y)20.35%
ROCE(3y)7.36%
ROCE(5y)10.49%
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-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 70.75% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.06% | ||
| Profit Quality | 140.48% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.14 |
F-Score8
WACC7.25%
ROIC/WACC0.59
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)110.38%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%48.39%
EPS Next Y24.2%
EPS Next 2Y16.54%
EPS Next 3Y19.19%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
Revenue Next Year1.74%
Revenue Next 2Y1.81%
Revenue Next 3Y1.67%
Revenue Next 5Y2.01%
EBIT growth 1Y67.17%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year103.41%
EBIT Next 3Y33.76%
EBIT Next 5Y27.68%
FCF growth 1Y1251.58%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y1.21%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%