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. The financial health of TSN is average, but there are quite some concerns on its profitability. TSN has a decent growth rate and is not valued too expensively. TSN also has an excellent dividend rating.
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.
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
TSN's Return On Assets of 2.52% is in line compared to the rest of the industry. TSN outperforms 48.35% of its industry peers.
Looking at the Return On Equity, with a value of 4.97%, TSN is in line with its industry, outperforming 46.15% of the companies in the same industry.
TSN's Return On Invested Capital of 4.30% is in line compared to the rest of the industry. TSN outperforms 52.75% of its industry peers.
TSN had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 28.20%.
| 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
With a Profit Margin value of 1.70%, TSN perfoms like the industry average, outperforming 52.75% of the companies in the same industry.
In the last couple of years the Profit Margin of TSN has declined.
TSN has a Operating Margin of 3.28%. This is comparable to the rest of the industry: TSN outperforms 49.45% of its industry peers.
In the last couple of years the Operating Margin of TSN has declined.
TSN has a Gross Margin of 7.14%. This is in the lower half of the industry: TSN underperforms 78.02% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TSN is destroying value.
TSN has about the same amout of shares outstanding than it did 1 year ago.
TSN has less shares outstanding than it did 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 3.12. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN's Altman-Z score of 3.12 is fine compared to the rest of the industry. TSN outperforms 68.13% of its industry peers.
TSN has a debt to FCF ratio of 7.06. This is a slightly negative value and a sign of low solvency as TSN would need 7.06 years to pay back of all of its debts.
TSN has a better Debt to FCF ratio (7.06) than 69.23% of its industry peers.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.61
WACC7.08%
2.3 Liquidity
A Current Ratio of 1.67 indicates that TSN should not have too much problems paying its short term obligations.
TSN's Current ratio of 1.67 is in line compared to the rest of the industry. TSN outperforms 58.24% of its industry peers.
A Quick Ratio of 0.69 indicates that TSN may have some problems paying its short term obligations.
TSN has a worse Quick ratio (0.69) than 62.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.38%, which is quite impressive.
Measured over the past years, TSN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.70% on average per year.
TSN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.39%.
The Revenue has been growing slightly by 4.68% on average over the past years.
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
TSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.28% yearly.
The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y24.2%
EPS Next 2Y16.54%
EPS Next 3Y19.19%
EPS Next 5Y24.28%
Revenue Next Year1.78%
Revenue Next 2Y1.79%
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.
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 13.64 indicates a correct valuation of TSN.
Compared to the rest of the industry, the Price/Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, TSN is valued a bit cheaper.
TSN is valuated correctly with a Price/Forward Earnings ratio of 12.48.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
TSN is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 68.13% of the companies listed 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 73.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 8.55 |
4.3 Compensation for Growth
The 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 19.19% in the coming years.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y16.54%
EPS Next 3Y19.19%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.74, TSN pays a bit more dividend than its industry peers.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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 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
75.60% of the earnings are spent on dividend by TSN. This is not a sustainable payout ratio.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.6%
EPS Next 2Y16.54%
EPS Next 3Y19.19%
52.53
+0.23 (+0.44%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change-0.06%
Ins Owners1.4%
Ins Owner Change0.37%
Market Cap18.71B
Analysts73.33
Price Target66.51 (26.61%)
Short Float %3.2%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
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)-0.14%
PT rev (3m)-2.07%
EPS NQ rev (1m)-10.24%
EPS NQ rev (3m)-11.56%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.48 | ||
| P/S | 0.35 | ||
| P/FCF | 14.57 | ||
| P/OCF | 8.28 | ||
| P/B | 1.02 | ||
| P/tB | 6.55 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)3.85
EY7.33%
EPS(NY)4.21
Fwd EY8.02%
FCF(TTM)3.6
FCFY6.86%
OCF(TTM)6.34
OCFY12.07%
SpS150.51
BVpS51.65
TBVpS8.01
PEG (NY)0.56
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 | 3.12 |
F-Score8
WACC7.08%
ROIC/WACC0.61
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 Year1.78%
Revenue Next 2Y1.79%
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%