TYSON FOODS INC-CL A (TSN) Stock Fundamental Analysis
USA - NYSE:TSN - US9024941034 - Common Stock
53.59 USD
-0.42 (-0.78%)
53.59 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TSN. TSN was compared to 89 industry peers in the Food Products industry. The financial health of TSN is average, but there are quite some concerns on its profitability. TSN is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years TSN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.15%, TSN is in line with its industry, outperforming 49.44% of the companies in the same industry.
The Return On Equity of TSN (4.28%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.91%, TSN perfoms like the industry average, outperforming 53.93% of the companies in the same industry.
TSN had an Average Return On Invested Capital over the past 3 years of 5.52%. This is significantly below the industry average of 27.85%.
| 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
The Profit Margin of TSN (1.45%) 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 (3.71%) is comparable to the rest of the 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 75.28% of the companies in the same industry.
In the last couple of years the Gross Margin of TSN has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TSN is destroying value.
TSN has about the same amout of shares outstanding than it did 1 year ago.
TSN has less shares outstanding than it did 5 years ago.
TSN has a worse debt/assets ratio than last year.
2.2 Solvency
TSN has an Altman-Z score of 3.16. This indicates that TSN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, TSN is in the better half of the industry, outperforming 66.29% of the companies in the same industry.
TSN has a debt to FCF ratio of 6.98. This is a slightly negative value and a sign of low solvency as TSN would need 6.98 years to pay back of all of its debts.
The Debt to FCF ratio of TSN (6.98) is better than 70.79% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that TSN is not too dependend on debt financing.
The Debt to Equity ratio of TSN (0.45) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 6.98 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.7
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.73 indicates that TSN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.73, TSN is in line with its industry, outperforming 56.18% 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.
Looking at the Quick ratio, with a value of 0.78, TSN is in line with its industry, outperforming 40.45% of the companies in the same industry.
| 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.
TSN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.70% yearly.
Looking at the last year, TSN shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
TSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.68% yearly.
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
Based on estimates for the next years, TSN will show a very strong growth in Earnings Per Share. The EPS will grow by 22.65% on average per year.
TSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.
EPS Next Y25.07%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
EPS Next 5Y22.65%
Revenue Next Year2.74%
Revenue Next 2Y2.48%
Revenue Next 3Y1.99%
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 13.78, TSN is valued correctly.
71.91% of the companies in the same industry are more expensive than TSN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.38, TSN is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.22, the valuation of TSN can be described as correct.
Based on the Price/Forward Earnings ratio, TSN is valued a bit cheaper than the industry average as 73.03% of the companies are valued more expensively.
TSN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TSN is valued a bit cheaper than the industry average as 69.66% of the companies are valued more expensively.
74.16% 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 | 14.69 | ||
| EV/EBITDA | 7.92 |
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)0.55
PEG (5Y)N/A
EPS Next 2Y14.33%
EPS Next 3Y16.49%
5. Dividend
5.1 Amount
TSN has a Yearly Dividend Yield of 3.70%. Purely for dividend investing, there may be better candidates out there.
TSN's Dividend Yield is a higher than the industry average which is at 5.12.
Compared to an average S&P500 Dividend Yield of 2.38, TSN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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 88.65% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TSN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.65%
EPS Next 2Y14.33%
EPS Next 3Y16.49%
53.59
-0.42 (-0.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.77%
Inst Owner Change-0.81%
Ins Owners1.4%
Ins Owner Change-0.03%
Market Cap19.07B
Analysts71.11
Price Target64.85 (21.01%)
Short Float %3.08%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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)-0.14%
PT rev (3m)-2.65%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-5.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 13.22 | ||
| P/S | 0.35 | ||
| P/FCF | 14.69 | ||
| P/OCF | 8.52 | ||
| P/B | 1.04 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)3.89
EY7.26%
EPS(NY)4.05
Fwd EY7.56%
FCF(TTM)3.65
FCFY6.81%
OCF(TTM)6.29
OCFY11.73%
SpS152.19
BVpS51.54
TBVpS8.96
PEG (NY)0.55
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 | 3.16 |
F-Score8
WACC7.04%
ROIC/WACC0.7
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 Year2.74%
Revenue Next 2Y2.48%
Revenue Next 3Y1.99%
Revenue Next 5Y2.1%
EBIT growth 1Y55.74%
EBIT growth 3Y-32.21%
EBIT growth 5Y-9.38%
EBIT Next Year102.08%
EBIT Next 3Y33.52%
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%