TYSON FOODS INC-CL A (TSN)
US9024941034 - Common Stock
Taking everything into account, TSN scores 4 out of 10 in our fundamental rating. TSN was compared to 91 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. Finally 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.
TSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TSN's Return On Assets of -0.02% is in line compared to the rest of the industry. TSN outperforms 41.76% of its industry peers.
Looking at the Return On Equity, with a value of -0.04%, TSN is in line with its industry, outperforming 42.86% of the companies in the same industry.
TSN has a Return On Invested Capital (3.16%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TSN is in line with the industry average of 8.95%.
The last Return On Invested Capital (3.16%) 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 | -0.02% | ||
| ROE | -0.04% | ||
| ROIC | 3.16% |
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
TSN has a Operating Margin (2.43%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TSN has declined.
TSN has a Gross Margin of 6.60%. This is in the lower half of the industry: TSN underperforms 76.92% of its industry peers.
TSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.43% | ||
| PM (TTM) | N/A | ||
| GM | 6.6% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TSN is creating some value.
Compared to 1 year ago, TSN has less shares outstanding
The number of shares outstanding for TSN has been increased compared to 5 years ago.
Compared to 1 year ago, TSN has a worse debt to assets ratio.
2.2 Solvency
TSN has an Altman-Z score of 3.01. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN has a better Altman-Z score (3.01) than 69.23% of its industry peers.
TSN has a debt to FCF ratio of 10.63. This is a negative value and a sign of low solvency as TSN would need 10.63 years to pay back of all of its debts.
TSN has a Debt to FCF ratio of 10.63. This is comparable to the rest of the industry: TSN outperforms 56.04% of its industry peers.
TSN has a Debt/Equity ratio of 0.54. This is a neutral value indicating TSN is somewhat dependend on debt financing.
TSN has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: TSN outperforms 48.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 10.63 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.45
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.82 indicates that TSN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.82, TSN is doing good in the industry, outperforming 60.44% of the companies in the same industry.
TSN has a Quick Ratio of 1.82. 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 (0.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for TSN have decreased by -1.54% 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 -0.33% in the past year.
The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)-1.54%
EPS 3Y-38.72%
EPS 5Y-26.4%
EPS Q2Q%480%
Revenue 1Y (TTM)-0.33%
Revenue growth 3Y6.98%
Revenue growth 5Y5.71%
Sales Q2Q%1.62%
3.2 Future
TSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.44% yearly.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
EPS Next Y115.21%
EPS Next 2Y69.62%
EPS Next 3Y51.5%
EPS Next 5Y51.44%
Revenue Next Year-0.23%
Revenue Next 2Y0.64%
Revenue Next 3Y1.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.10 indicates a rather expensive valuation of TSN.
TSN's Price/Earnings is on the same level as the industry average.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 31.46.
Based on the Price/Forward Earnings ratio of 15.39, the valuation of TSN can be described as correct.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (22.63), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 15.39 |
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 70.33% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TSN is valued a bit cheaper than 67.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.21 | ||
| EV/EBITDA | 10.66 |
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.
A more expensive valuation may be justified as TSN's earnings are expected to grow with 51.50% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y69.62%
EPS Next 3Y51.5%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.28%.
TSN's Dividend Yield is rather good when compared to the industry average which is at 3.51. TSN pays more dividend than 80.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.18, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of TSN has a limited annual growth rate of 5.22%.
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)5.22%
Div Incr Years13
Div Non Decr Years34
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-9714.29%
EPS Next 2Y69.62%
EPS Next 3Y51.5%
TYSON FOODS INC-CL A
NYSE:TSN (10/22/2024, 1:28:52 PM)
58.9
-0.28 (-0.47%)
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 Cap20.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 15.39 | ||
| 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)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.04% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.43% | ||
| PM (TTM) | N/A | ||
| GM | 6.6% | ||
| 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 | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.95 | ||
| 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)-1.54%
EPS 3Y-38.72%
EPS 5Y
EPS Q2Q%
EPS Next Y115.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.33%
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