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 89 industry peers in the Food Products industry. TSN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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
Looking at the Return On Assets, with a value of 2.52%, TSN is in line with its industry, outperforming 48.31% of the companies in the same industry.
TSN's Return On Equity of 4.97% is in line compared to the rest of the industry. TSN outperforms 50.56% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.30%, TSN is in line with its industry, outperforming 47.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TSN is below the industry average of 8.83%.
| 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
TSN has a Profit Margin (1.70%) which is comparable to the rest of the industry.
TSN's Profit Margin has declined in the last couple of years.
The Operating Margin of TSN (3.28%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TSN has declined.
The Gross Margin of TSN (7.14%) is worse than 78.65% 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
TSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TSN remains at a similar level compared to 1 year ago.
TSN has less shares outstanding than it did 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 3.15. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TSN (3.15) is better than 70.79% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.06, TSN is in the better half of the industry, outperforming 61.80% 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's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. TSN outperforms 49.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.59
WACC7.29%
2.3 Liquidity
TSN has a Current Ratio of 1.67. This is a normal value and indicates that TSN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.67, TSN perfoms like the industry average, outperforming 57.30% of the companies in the same industry.
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 66.29% 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%.
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
The Earnings Per Share is expected to grow by 24.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.64% on average over the next years.
EPS Next Y22.47%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
EPS Next 5Y24.28%
Revenue Next Year1.44%
Revenue Next 2Y1.71%
Revenue Next 3Y1.72%
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.
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
The Price/Earnings ratio is 14.38, which indicates a correct valuation of TSN.
66.29% of the companies in the same industry are more expensive than TSN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TSN to the average of the S&P500 Index (24.95), we can say TSN is valued slightly cheaper.
TSN is valuated correctly with a Price/Forward Earnings ratio of 13.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 74.16% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. TSN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
TSN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TSN is cheaper than 66.29% of the companies in the same industry.
68.54% 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 | 15.36 | ||
| EV/EBITDA | 8.87 |
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.
TSN's earnings are expected to grow with 19.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y14.77%
EPS Next 3Y19.16%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.61%.
Compared to an average industry Dividend Yield of 4.63, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
75.60% of the earnings are spent on dividend by TSN. This is not a sustainable payout ratio.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.6%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
55.36
-0.63 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners85.51%
Inst Owner Change1.72%
Ins Owners1.4%
Ins Owner Change3.45%
Market Cap19.72B
Analysts71.11
Price Target67.08 (21.17%)
Short Float %2.7%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)-2.83%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0.53%
EPS NY rev (3m)6.86%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)1.09%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 13.56 | ||
| P/S | 0.37 | ||
| P/FCF | 15.36 | ||
| P/OCF | 8.73 | ||
| P/B | 1.07 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 8.87 |
EPS(TTM)3.85
EY6.95%
EPS(NY)4.08
Fwd EY7.38%
FCF(TTM)3.6
FCFY6.51%
OCF(TTM)6.34
OCFY11.46%
SpS150.52
BVpS51.66
TBVpS8.02
PEG (NY)0.64
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
WACC7.29%
ROIC/WACC0.59
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 Y22.47%
EPS Next 2Y14.77%
EPS Next 3Y19.16%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
Revenue Next Year1.44%
Revenue Next 2Y1.71%
Revenue Next 3Y1.72%
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%