TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TSN - US9024941034 - Common Stock
58.03 USD
+0.66 (+1.15%)
58 USD
-0.03 (-0.05%)
Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 87 industry peers in the Food Products industry. Both the profitability and the financial health of TSN get a neutral evaluation. Nothing too spectacular is happening here. TSN has a correct valuation and a medium growth rate.
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.
In the past 5 years TSN always reported a positive cash flow from operatings.
1.2 Ratios
TSN has a Return On Assets (1.29%) which is comparable to the rest of the industry.
The Return On Equity of TSN (2.62%) is comparable to the rest of the industry.
TSN has a Return On Invested Capital of 3.46%. This is comparable to the rest of the industry: TSN outperforms 55.17% of its industry peers.
TSN had an Average Return On Invested Capital over the past 3 years of 3.04%. This is significantly below the industry average of 28.02%.
The 3 year average ROIC (3.04%) for TSN is below the current ROIC(3.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 2.62% | ||
| ROIC | 3.46% |
ROA(3y)0.55%
ROA(5y)3.77%
ROE(3y)1.13%
ROE(5y)7.4%
ROIC(3y)3.04%
ROIC(5y)6.4%
1.3 Margins
TSN has a Profit Margin of 0.87%. This is comparable to the rest of the industry: TSN outperforms 45.98% of its industry peers.
TSN's Profit Margin has declined in the last couple of years.
The Operating Margin of TSN (2.72%) 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 6.57%, TSN is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
TSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | 0.87% | ||
| GM | 6.57% |
OM growth 3Y-30.99%
OM growth 5Y-20.17%
PM growth 3Y-47.67%
PM growth 5Y-28.84%
GM growth 3Y-19.14%
GM growth 5Y-13.62%
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for TSN has been reduced compared to 5 years ago.
The debt/assets ratio for TSN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.10 indicates that TSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.10, TSN is doing good in the industry, outperforming 67.82% of the companies in the same industry.
TSN has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as TSN would need 7.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.50, TSN is doing good in the industry, outperforming 68.97% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.49
WACC7.02%
2.3 Liquidity
TSN has a Current Ratio of 1.55. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
TSN's Current ratio of 1.55 is in line compared to the rest of the industry. TSN outperforms 52.87% of its industry peers.
A Quick Ratio of 0.66 indicates that TSN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, TSN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
TSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.90%, which is quite impressive.
TSN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.55% yearly.
The Revenue has been growing slightly by 2.12% in the past year.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.74% on average per year.
EPS 1Y (TTM)32.9%
EPS 3Y-22.14%
EPS 5Y-6.55%
EPS Q2Q%25%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y0.72%
Revenue growth 5Y4.74%
Sales Q2Q%2.17%
3.2 Future
The Earnings Per Share is expected to grow by 16.57% on average over the next years. This is quite good.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.95% yearly.
EPS Next Y-5.31%
EPS Next 2Y2.78%
EPS Next 3Y11.09%
EPS Next 5Y16.57%
Revenue Next Year2.26%
Revenue Next 2Y1.53%
Revenue Next 3Y1.84%
Revenue Next 5Y1.95%
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
Based on the Price/Earnings ratio of 14.08, the valuation of TSN can be described as correct.
Based on the Price/Earnings ratio, TSN is valued a bit cheaper than 67.82% of the companies in the same industry.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 14.87 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 70.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.87 |
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 indicates a somewhat cheap valuation: TSN is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.41 | ||
| EV/EBITDA | 9.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.78%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.56%.
TSN's Dividend Yield is a higher than the industry average which is at 2.46.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.64%.
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)3.64%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
TSN pays out 147.05% 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.
DP147.05%
EPS Next 2Y2.78%
EPS Next 3Y11.09%
58.03
+0.66 (+1.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.73%
Inst Owner Change0%
Ins Owners1.33%
Ins Owner Change2.05%
Market Cap20.49B
Revenue(TTM)54.44B
Net Income(TTM)474.00M
Analysts70
Price Target64.92 (11.87%)
Short Float %3.45%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.97
Dividend Growth(5Y)3.64%
DP147.05%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.74%
Min EPS beat(2)14.96%
Max EPS beat(2)36.52%
EPS beat(4)4
Avg EPS beat(4)22.7%
Min EPS beat(4)10.65%
Max EPS beat(4)36.52%
EPS beat(8)8
Avg EPS beat(8)35.18%
EPS beat(12)9
Avg EPS beat(12)10.24%
EPS beat(16)11
Avg EPS beat(16)11.35%
Revenue beat(2)1
Avg Revenue beat(2)-0.18%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)1.4%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.45%
Revenue beat(12)3
Avg Revenue beat(12)-1.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.69%
PT rev (1m)1.23%
PT rev (3m)-0.21%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-3.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.08 | ||
| Fwd PE | 14.87 | ||
| P/S | 0.38 | ||
| P/FCF | 17.41 | ||
| P/OCF | 9.51 | ||
| P/B | 1.13 | ||
| P/tB | 6.85 | ||
| EV/EBITDA | 9.8 |
EPS(TTM)4.12
EY7.1%
EPS(NY)3.9
Fwd EY6.72%
FCF(TTM)3.33
FCFY5.74%
OCF(TTM)6.1
OCFY10.52%
SpS154.2
BVpS51.23
TBVpS8.47
PEG (NY)N/A
PEG (5Y)N/A
Graham Number68.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.29% | ||
| ROE | 2.62% | ||
| ROCE | 4.9% | ||
| ROIC | 3.46% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 7.5% | ||
| OM | 2.72% | ||
| PM (TTM) | 0.87% | ||
| GM | 6.57% | ||
| FCFM | 2.16% |
ROA(3y)0.55%
ROA(5y)3.77%
ROE(3y)1.13%
ROE(5y)7.4%
ROIC(3y)3.04%
ROIC(5y)6.4%
ROICexc(3y)3.17%
ROICexc(5y)6.78%
ROICexgc(3y)6.6%
ROICexgc(5y)15.99%
ROCE(3y)4.32%
ROCE(5y)9.07%
ROICexgc growth 3Y-30.89%
ROICexgc growth 5Y-20.07%
ROICexc growth 3Y-29.37%
ROICexc growth 5Y-16.52%
OM growth 3Y-30.99%
OM growth 5Y-20.17%
PM growth 3Y-47.67%
PM growth 5Y-28.84%
GM growth 3Y-19.14%
GM growth 5Y-13.62%
F-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 71.86% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 75.8% | ||
| Profit Quality | 248.31% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 3.1 |
F-Score6
WACC7.02%
ROIC/WACC0.49
Cap/Depr(3y)99.18%
Cap/Depr(5y)110.82%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.9%
EPS 3Y-22.14%
EPS 5Y-6.55%
EPS Q2Q%25%
EPS Next Y-5.31%
EPS Next 2Y2.78%
EPS Next 3Y11.09%
EPS Next 5Y16.57%
Revenue 1Y (TTM)2.12%
Revenue growth 3Y0.72%
Revenue growth 5Y4.74%
Sales Q2Q%2.17%
Revenue Next Year2.26%
Revenue Next 2Y1.53%
Revenue Next 3Y1.84%
Revenue Next 5Y1.95%
EBIT growth 1Y-13.74%
EBIT growth 3Y-30.5%
EBIT growth 5Y-16.38%
EBIT Next Year70.35%
EBIT Next 3Y25.82%
EBIT Next 5Y22.35%
FCF growth 1Y-19.27%
FCF growth 3Y13.74%
FCF growth 5Y-15.14%
OCF growth 1Y-16.8%
OCF growth 3Y-7.09%
OCF growth 5Y-11.07%
TYSON FOODS INC-CL A / TSN FAQ
What is the fundamental rating for TSN stock?
ChartMill assigns a fundamental rating of 4 / 10 to TSN.
What is the valuation status of TYSON FOODS INC-CL A (TSN) stock?
ChartMill assigns a valuation rating of 4 / 10 to TYSON FOODS INC-CL A (TSN). This can be considered as Fairly Valued.
How profitable is TYSON FOODS INC-CL A (TSN) stock?
TYSON FOODS INC-CL A (TSN) has a profitability rating of 4 / 10.
What is the valuation of TYSON FOODS INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TYSON FOODS INC-CL A (TSN) is 14.08 and the Price/Book (PB) ratio is 1.13.
Can you provide the dividend sustainability for TSN stock?
The dividend rating of TYSON FOODS INC-CL A (TSN) is 6 / 10 and the dividend payout ratio is 147.05%.