TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
52.48 USD
+0.32 (+0.61%)
52.48 USD
0 (0%)
Overall TSN gets a fundamental rating of 4 out of 10. We evaluated TSN against 87 industry peers in the Food Products industry. While TSN seems to be doing ok healthwise, there are quite some concerns on its profitability. TSN has a correct valuation and a medium growth rate.
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.
TSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.15%, TSN perfoms like the industry average, outperforming 49.43% of the companies in the same industry.
TSN's Return On Equity of 4.28% is in line compared to the rest of the industry. TSN outperforms 48.28% of its industry peers.
TSN has a Return On Invested Capital (4.91%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TSN is significantly below the industry average of 28.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROIC | 4.91% |
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 1.45%, TSN is in line with its industry, outperforming 50.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TSN has declined.
Looking at the Operating Margin, with a value of 3.71%, TSN is in line with its industry, outperforming 54.02% of the companies in the same industry.
In the last couple of years the Operating Margin of TSN has declined.
Looking at the Gross Margin, with a value of 7.53%, TSN is doing worse than 74.71% of the companies in the same industry.
TSN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% |
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.
TSN has about the same amout of shares outstanding than it did 1 year ago.
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 3.14. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
TSN has a Altman-Z score of 3.14. This is in the better half of the industry: TSN outperforms 66.67% of its industry peers.
The Debt to FCF ratio of TSN is 6.98, which is on the high side as it means it would take TSN, 6.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.98, TSN is in the better half of the industry, outperforming 70.11% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that TSN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, TSN perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.14 |
ROIC/WACC0.71
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.73 indicates that TSN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.73, TSN perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that TSN may have some problems paying its short term obligations.
TSN has a worse Quick ratio (0.78) than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.55% over the past year.
The earnings per share for TSN have been decreasing by -10.70% on average. This is quite bad
The Revenue has been growing slightly by 1.99% in the past 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)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
3.2 Future
The Earnings Per Share is expected to grow by 22.65% on average over the next years. This is a very strong growth
Based on estimates for the next years, TSN will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue Next Year2.96%
Revenue Next 2Y2.67%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 13.49, TSN is valued correctly.
TSN's Price/Earnings ratio is a bit cheaper when compared to the industry. TSN is cheaper than 72.41% of the companies in the same industry.
TSN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
A Price/Forward Earnings ratio of 12.95 indicates a correct valuation of TSN.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than 77.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, TSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than 72.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TSN indicates a somewhat cheap valuation: TSN is cheaper than 73.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 7.8 |
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 16.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y14.33%
EPS Next 3Y16.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, TSN has a reasonable but not impressive dividend return.
TSN's Dividend Yield is a higher than the industry average which is at 5.09.
Compared to an average S&P500 Dividend Yield of 2.36, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years13
Div Non Decr Years34
5.3 Sustainability
88.65% of the earnings are spent on dividend by TSN. This is not a sustainable payout ratio.
TSN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP88.65%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
52.48
+0.32 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.65%
Inst Owner Change-0.12%
Ins Owners1.32%
Ins Owner Change-0.03%
Market Cap18.67B
Analysts70
Price Target65.05 (23.95%)
Short Float %3.41%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend1.92
Dividend Growth(5Y)3.44%
DP88.65%
Div Incr Years13
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.8%
Min EPS beat(2)10.65%
Max EPS beat(2)14.96%
EPS beat(4)4
Avg EPS beat(4)21.65%
Min EPS beat(4)10.65%
Max EPS beat(4)32.3%
EPS beat(8)8
Avg EPS beat(8)33.91%
EPS beat(12)8
Avg EPS beat(12)6.65%
EPS beat(16)11
Avg EPS beat(16)9.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)1.4%
Revenue beat(4)3
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)1.4%
Revenue beat(8)3
Avg Revenue beat(8)-0.68%
Revenue beat(12)4
Avg Revenue beat(12)-1.36%
Revenue beat(16)8
Avg Revenue beat(16)-0.57%
PT rev (1m)0.32%
PT rev (3m)-2.2%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 12.95 | ||
| P/S | 0.34 | ||
| P/FCF | 14.38 | ||
| P/OCF | 8.35 | ||
| P/B | 1.02 | ||
| P/tB | 5.86 | ||
| EV/EBITDA | 7.8 |
EPS(TTM)3.89
EY7.41%
EPS(NY)4.05
Fwd EY7.72%
FCF(TTM)3.65
FCFY6.95%
OCF(TTM)6.29
OCFY11.98%
SpS152.19
BVpS51.54
TBVpS8.96
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 4.28% | ||
| ROCE | 6.53% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 10.74% | ||
| OM | 3.71% | ||
| PM (TTM) | 1.45% | ||
| GM | 7.53% | ||
| FCFM | 2.4% |
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 | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 69.71% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.66% | ||
| Profit Quality | 165.56% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.14 |
F-Score8
WACC6.94%
ROIC/WACC0.71
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)52.55%
EPS 3Y-27.93%
EPS 5Y-10.7%
EPS Q2Q%4.6%
EPS Next Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y4.25%
Revenue growth 5Y4.68%
Sales Q2Q%3.98%
Revenue Next Year2.96%
Revenue Next 2Y2.67%
Revenue Next 3Y2.09%
Revenue Next 5Y2.1%
EBIT growth 1Y55.74%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year106.24%
EBIT Next 3Y32.58%
EBIT Next 5Y27.68%
FCF growth 1Y1224.49%
FCF growth 3Y-17.86%
FCF growth 5Y3.06%
OCF growth 1Y0.49%
OCF growth 3Y-12.3%
OCF growth 5Y0.61%