Tractor Supply Company
Tractor Supply Company Fundamental Analysis
Tractor Supply Company (TSCO) shows moderate financial fundamentals with a PE ratio of 25.42, profit margin of 7.06%, and ROE of 44.36%. The company generates $15.5B in annual revenue with weak year-over-year growth of 2.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TSCO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTSCO demonstrates superior asset utilization.
Valuation Score
ModerateTSCO shows balanced valuation metrics.
Growth Score
WeakTSCO faces weak or negative growth trends.
Financial Health Score
ModerateTSCO shows balanced financial health with some risks.
Profitability Score
ModerateTSCO maintains healthy but balanced margins.
Key Financial Metrics
Is TSCO Expensive or Cheap?
P/E Ratio
TSCO trades at 25.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TSCO's PEG of -52.87 indicates potential undervaluation.
Price to Book
The market values Tractor Supply Company at 10.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.40 times EBITDA. This is generally considered low.
How Well Does TSCO Make Money?
Net Profit Margin
For every $100 in sales, Tractor Supply Company keeps $7.06 as profit after all expenses.
Operating Margin
Core operations generate 9.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $44.36 in profit for every $100 of shareholder equity.
ROA
Tractor Supply Company generates $10.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tractor Supply Company produces operating cash flow of $1.64B, showing steady but balanced cash generation.
Free Cash Flow
Tractor Supply Company produces free cash flow of $741.02M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.40 in free cash annually.
FCF Yield
TSCO converts 2.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-52.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How TSCO Stacks Against Its Sector Peers
| Metric | TSCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.42 | 25.25 | Neutral |
| ROE | 44.36% | 1170.00% | Weak |
| Net Margin | 7.06% | 742.00% | Weak |
| Debt/Equity | 3.73 | 0.77 | Weak (High Leverage) |
| Current Ratio | 1.34 | 9.19 | Neutral |
| ROA | 10.02% | -6467.00% (disorted) | Strong |
TSCO outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tractor Supply Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.67%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
118.32%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
95.15%
Industry Style: Cyclical, Growth, Discretionary
High Growth