TYSON FOODS INC-CL A (TSN)

US9024941034 - Common Stock

53.81  +0.72 (+1.36%)

After market: 53.81 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to TSN. TSN was compared to 91 industry peers in the Food Products industry. Both the profitability and financial health of TSN have multiple concerns. TSN has a valuation in line with the averages, but it does not seem to be growing. Finally TSN also has an excellent dividend rating.



3

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.
Of the past 5 years TSN 4 years were profitable.
In the past 5 years TSN always reported a positive cash flow from operatings.

1.2 Ratios

TSN has a Return On Assets of -2.33%. This is in the lower half of the industry: TSN underperforms 63.33% of its industry peers.
With a Return On Equity value of -4.72%, TSN is not doing good in the industry: 62.22% of the companies in the same industry are doing better.
The Return On Invested Capital of TSN (1.69%) 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 7.75%.
The last Return On Invested Capital (1.69%) 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 -2.33%
ROE -4.72%
ROIC 1.69%
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 (1.25%) which is in line with its industry peers.
TSN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 5.45%, TSN is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
TSN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 1.25%
PM (TTM) N/A
GM 5.45%
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%

3

2. Health

2.1 Basic Checks

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

2.2 Solvency

An Altman-Z score of 2.92 indicates that TSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
TSN's Altman-Z score of 2.92 is fine compared to the rest of the industry. TSN outperforms 70.00% of its industry peers.
TSN has a debt to FCF ratio of 16.52. This is a negative value and a sign of low solvency as TSN would need 16.52 years to pay back of all of its debts.
TSN has a Debt to FCF ratio (16.52) which is in line with its industry peers.
TSN has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
TSN has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: TSN outperforms 50.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 16.52
Altman-Z 2.92
ROIC/WACC0.24
WACC7.07%

2.3 Liquidity

A Current Ratio of 1.49 indicates that TSN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, TSN is in line with its industry, outperforming 42.22% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that TSN may have some problems paying its short term obligations.
TSN has a Quick ratio of 0.67. This is in the lower half of the industry: TSN underperforms 71.11% of its industry peers.
Industry RankSector Rank
Current Ratio 1.49
Quick Ratio 0.67

3

3. Growth

3.1 Past

The earnings per share for TSN have decreased strongly by -82.56% 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.
TSN shows a decrease in Revenue. In the last year, the revenue decreased by -1.25%.
The Revenue has been growing slightly by 5.71% on average over the past years.
EPS 1Y (TTM)-82.56%
EPS 3Y-38.72%
EPS 5Y-26.4%
EPS growth Q2Q-18.82%
Revenue 1Y (TTM)-1.25%
Revenue growth 3Y6.98%
Revenue growth 5Y5.71%
Revenue growth Q2Q0.44%

3.2 Future

The Earnings Per Share is expected to grow by 51.44% on average over the next years. This is a very strong growth
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.54% yearly.
EPS Next Y51.68%
EPS Next 2Y59.31%
EPS Next 3Y49.5%
EPS Next 5Y51.44%
Revenue Next Year-0.46%
Revenue Next 2Y0.79%
Revenue Next 3Y1.4%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 45.99, the valuation of TSN can be described as expensive.
TSN's Price/Earnings is on the same level as the industry average.
TSN is valuated expensively when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.94 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 73.33% of the companies in the same industry.
TSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.63.
Industry RankSector Rank
PE 45.99
Fwd PE 15.94

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 62.22% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as TSN.
Industry RankSector Rank
P/FCF 32.72
EV/EBITDA 13.1

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 49.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y59.31%
EPS Next 3Y49.5%

7

5. Dividend

5.1 Amount

TSN has a Yearly Dividend Yield of 3.73%.
TSN's Dividend Yield is rather good when compared to the industry average which is at 3.52. TSN pays more dividend than 84.44% of the companies in the same industry.
TSN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.46.
Industry RankSector Rank
Dividend Yield 3.73%

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 Years10
Div Non Decr Years10

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-78.41%
EPS Next 2Y59.31%
EPS Next 3Y49.5%

TYSON FOODS INC-CL A

NYSE:TSN (2/23/2024, 7:16:32 PM)

After market: 53.81 0 (0%)

53.81

+0.72 (+1.36%)

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 Cap19.18B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.73%
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 45.99
Fwd PE 15.94
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)0.89
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.33%
ROE -4.72%
ROCE
ROIC
ROICexc
ROICexgc
OM 1.25%
PM (TTM) N/A
GM 5.45%
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 Turnover1.44
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.49
Quick Ratio 0.67
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)
Growth
EPS 1Y (TTM)-82.56%
EPS 3Y-38.72%
EPS 5Y
EPS growth Q2Q
EPS Next Y51.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.25%
Revenue growth 3Y6.98%
Revenue growth 5Y
Revenue growth 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