TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 90 industry peers in the Food Products industry. While TSN seems to be doing ok healthwise, there are quite some concerns on its profitability. TSN is not valued too expensively and it also shows a decent growth rate. TSN also has an excellent dividend rating.
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
TSN has a Return On Assets (2.52%) which is comparable to the rest of the industry.
With a Return On Equity value of 4.97%, TSN perfoms like the industry average, outperforming 51.11% 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 47.78% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is below the industry average of 8.63%.
| 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
Looking at the Profit Margin, with a value of 1.70%, TSN is in line with its industry, outperforming 47.78% of the companies in the same industry.
TSN's Profit Margin has declined in the last couple of years.
TSN has a Operating Margin of 3.28%. This is comparable to the rest of the industry: TSN outperforms 50.00% of its industry peers.
TSN's Operating Margin has declined in the last couple of years.
TSN has a worse Gross Margin (7.14%) than 77.78% of its industry peers.
TSN's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
Compared to 1 year ago, TSN has about the same amount of shares outstanding.
Compared to 5 years ago, TSN has less shares outstanding
Compared to 1 year ago, TSN has a worse debt to assets ratio.
2.2 Solvency
TSN has an Altman-Z score of 3.15. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.15, TSN is doing good in the industry, outperforming 71.11% 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.
TSN's Debt to FCF ratio of 7.06 is fine compared to the rest of the industry. TSN outperforms 64.44% of its industry peers.
TSN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, TSN is in line with its industry, outperforming 51.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.58
WACC7.35%
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 57.78% of its industry peers.
TSN has a Quick Ratio of 1.67. 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 of 0.69. This is in the lower half of the industry: TSN underperforms 64.44% 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.
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 1.39% in the last year.
Measured over the past years, TSN shows a small growth in Revenue. The Revenue has been growing by 4.68% on average per year.
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 1.64% on average per year.
EPS Next Y25.89%
EPS Next 2Y16.44%
EPS Next 3Y18.32%
EPS Next 5Y24.28%
Revenue Next Year1.69%
Revenue Next 2Y1.85%
Revenue Next 3Y1.78%
Revenue Next 5Y1.64%
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
With a Price/Earnings ratio of 14.43, TSN is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 68.89% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. TSN is valued slightly cheaper when compared to this.
TSN is valuated correctly with a Price/Forward Earnings ratio of 13.22.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 74.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (21.76), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 13.22 |
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 66.67% of the companies listed in the same industry.
66.67% of the companies in the same industry are more expensive than TSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.41 | ||
| EV/EBITDA | 8.88 |
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 18.32% in the coming years.
PEG (NY)0.56
PEG (5Y)N/A
EPS Next 2Y16.44%
EPS Next 3Y18.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.59%, TSN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.59, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
5.2 History
The dividend of TSN has a limited annual growth rate of 3.44%.
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)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.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.6%
EPS Next 2Y16.44%
EPS Next 3Y18.32%
55.55
+0.07 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.51%
Inst Owner Change2.21%
Ins Owners1.4%
Ins Owner Change0.71%
Market Cap19.79B
Analysts71.11
Price Target67.08 (20.76%)
Short Float %2.7%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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)-1.09%
PT rev (3m)1.31%
EPS NQ rev (1m)-1.43%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)2.79%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)1.48%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 13.22 | ||
| P/S | 0.37 | ||
| P/FCF | 15.41 | ||
| P/OCF | 8.76 | ||
| P/B | 1.08 | ||
| P/tB | 6.93 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)3.85
EY6.93%
EPS(NY)4.2
Fwd EY7.57%
FCF(TTM)3.6
FCFY6.49%
OCF(TTM)6.34
OCFY11.42%
SpS150.52
BVpS51.66
TBVpS8.02
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 | 3.15 |
F-Score8
WACC7.35%
ROIC/WACC0.58
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 Y25.89%
EPS Next 2Y16.44%
EPS Next 3Y18.32%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
Revenue Next Year1.69%
Revenue Next 2Y1.85%
Revenue Next 3Y1.78%
Revenue Next 5Y1.64%
EBIT growth 1Y67.17%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year102.31%
EBIT Next 3Y34.16%
EBIT Next 5Y27.21%
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%