TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
NYSE:TSN - New York Stock Exchange, Inc. - US9024941034 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to TSN. TSN was compared to 91 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 has a decent growth rate and is not valued too expensively. TSN also has an excellent dividend rating.
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.
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 2.52%. This is comparable to the rest of the industry: TSN outperforms 48.35% of its industry peers.
With a Return On Equity value of 4.97%, TSN perfoms like the industry average, outperforming 47.25% of the companies in the same industry.
With a Return On Invested Capital value of 4.30%, TSN perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TSN is significantly below the industry average of 28.40%.
| 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
With a Profit Margin value of 1.70%, TSN perfoms like the industry average, outperforming 51.65% of the companies in the same industry.
In the last couple of years the Profit Margin of TSN has declined.
TSN's Operating Margin of 3.28% is in line compared to the rest of the industry. TSN outperforms 50.55% of its industry peers.
TSN's Operating Margin has declined in the last couple of years.
TSN's Gross Margin of 7.14% is on the low side compared to the rest of the industry. TSN is outperformed by 78.02% of its industry peers.
In the last couple of years the Gross Margin of TSN has declined.
| 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
The debt/assets ratio for TSN is higher compared to a year ago.
2.2 Solvency
TSN has an Altman-Z score of 3.17. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN has a better Altman-Z score (3.17) than 68.13% 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.
With a decent Debt to FCF ratio value of 7.06, TSN is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TSN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
TSN's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. TSN outperforms 49.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 7.06 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.47
WACC9.21%
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.
TSN's Current ratio of 1.67 is in line compared to the rest of the industry. TSN outperforms 57.14% 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.
With a Quick ratio value of 0.69, TSN is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| 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.
TSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.70% yearly.
The Revenue has been growing slightly by 1.39% in the past year.
The Revenue has been growing slightly by 4.68% on average over the past years.
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
TSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.28% yearly.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y25.32%
EPS Next 2Y16.35%
EPS Next 3Y18.23%
EPS Next 5Y24.28%
Revenue Next Year1.71%
Revenue Next 2Y1.86%
Revenue Next 3Y1.84%
Revenue Next 5Y2.01%
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 14.90, which indicates a correct valuation of TSN.
Compared to the rest of the industry, the Price/Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 69.23% of the companies listed in the same industry.
TSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 13.67, TSN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 73.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TSN to the average of the S&P500 Index (21.90), we can say TSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 63.74% of the companies are valued more expensively.
71.43% 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 | 15.91 | ||
| EV/EBITDA | 9.09 |
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 18.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y16.35%
EPS Next 3Y18.23%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.75, TSN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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 2Y16.35%
EPS Next 3Y18.23%
57.36
-0.09 (-0.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change2.42%
Ins Owners1.4%
Ins Owner Change0.37%
Market Cap20.43B
Analysts72.22
Price Target66.61 (16.13%)
Short Float %2.69%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)-0.71%
PT rev (3m)-1.8%
EPS NQ rev (1m)-1.56%
EPS NQ rev (3m)-2.97%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)1.41%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 13.67 | ||
| P/S | 0.38 | ||
| P/FCF | 15.91 | ||
| P/OCF | 9.05 | ||
| P/B | 1.11 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)3.85
EY6.71%
EPS(NY)4.2
Fwd EY7.32%
FCF(TTM)3.6
FCFY6.28%
OCF(TTM)6.34
OCFY11.06%
SpS150.51
BVpS51.65
TBVpS8.01
PEG (NY)0.59
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 | 3.17 |
F-Score8
WACC9.21%
ROIC/WACC0.47
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 Y25.32%
EPS Next 2Y16.35%
EPS Next 3Y18.23%
EPS Next 5Y24.28%
Revenue 1Y (TTM)1.39%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%0.02%
Revenue Next Year1.71%
Revenue Next 2Y1.86%
Revenue Next 3Y1.84%
Revenue Next 5Y2.01%
EBIT growth 1Y67.17%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year103.41%
EBIT Next 3Y33.76%
EBIT Next 5Y27.68%
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%