TYSON FOODS INC-CL A (TSN)

US9024941034 - Common Stock

57.32  +0.44 (+0.77%)

After market: 57.09 -0.23 (-0.4%)

Fundamental Rating

4

Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 92 industry peers in the Food Products industry. TSN has an average financial health and profitability rating. TSN has a valuation in line with the averages, but on the other hand it scores bad on growth.



4

1. Profitability

1.1 Basic Checks

In the past year TSN was profitable.
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

Looking at the Return On Assets, with a value of -1.64%, TSN is in line with its industry, outperforming 40.66% of the companies in the same industry.
TSN has a Return On Equity (-3.40%) which is comparable to the rest of the industry.
TSN has a Return On Invested Capital (2.33%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is in line with the industry average of 8.02%.
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 RankSector 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

Looking at the Operating Margin, with a value of 1.79%, TSN is in line with its industry, outperforming 45.05% of the companies in the same industry.
TSN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 6.00%, TSN is doing worse than 75.82% of the companies in the same industry.
TSN's Gross Margin has declined in the last couple of years.
Industry RankSector 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%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSN is creating some value.
TSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TSN has more shares outstanding
TSN has a worse debt/assets ratio than last year.

2.2 Solvency

TSN has an Altman-Z score of 2.96. This is not the best score and indicates that TSN is in the grey zone with still only limited risk for bankruptcy at the moment.
TSN's Altman-Z score of 2.96 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.
With a Debt to FCF ratio value of 15.72, TSN perfoms like the industry average, 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 RankSector Rank
Debt/Equity 0.53
Debt/FCF 15.72
Altman-Z 2.96
ROIC/WACC0.33
WACC7.06%

2.3 Liquidity

A Current Ratio of 1.77 indicates that TSN should not have too much problems paying its short term obligations.
TSN has a better Current ratio (1.77) than 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 RankSector Rank
Current Ratio 1.77
Quick Ratio 0.87

3

3. Growth

3.1 Past

TSN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.22%.
TSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.40% yearly.
The Revenue has decreased 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 5.71% yearly.
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

Based on estimates for the next years, TSN will show a very strong growth in Earnings Per Share. The EPS will grow by 51.44% on average per year.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
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

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.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 31.32, which means the current valuation is very expensive for TSN.
The rest of the industry has a similar Price/Earnings ratio as TSN.
TSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.15.
The Price/Forward Earnings ratio is 15.15, which indicates a correct valuation of TSN.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than the industry average as 73.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (20.65), we can say TSN is valued slightly cheaper.
Industry RankSector Rank
PE 31.32
Fwd PE 15.15

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 61.54% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSN.
Industry RankSector Rank
P/FCF 29.28
EV/EBITDA 12.22

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.
TSN's earnings are expected to grow with 50.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y68.68%
EPS Next 3Y50.63%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.45%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is rather good when compared to the industry average which is at 3.77. TSN pays more dividend than 80.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TSN pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.45%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.22%
Div Incr Years12
Div Non Decr Years33

5.3 Sustainability

The earnings of TSN are negative and hence is the payout ratio. TSN will probably not be able to sustain this dividend level.
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 (7/12/2024, 7:05:35 PM)

After market: 57.09 -0.23 (-0.4%)

57.32

+0.44 (+0.77%)

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 Cap20.41B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.45%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 31.32
Fwd PE 15.15
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)0.31
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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