Tyson Foods, Inc.
Tyson Foods, Inc. Fundamental Analysis
Tyson Foods, Inc. (TSN) shows weak financial fundamentals with a PE ratio of 51.22, profit margin of 0.81%, and ROE of 2.50%. The company generates $56.2B in annual revenue with weak year-over-year growth of 2.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TSN's fundamental strength across five key dimensions:
Efficiency Score
WeakTSN struggles to generate sufficient returns from assets.
Valuation Score
ModerateTSN shows balanced valuation metrics.
Growth Score
WeakTSN faces weak or negative growth trends.
Financial Health Score
ExcellentTSN maintains a strong and stable balance sheet.
Profitability Score
ModerateTSN maintains healthy but balanced margins.
Key Financial Metrics
Is TSN Expensive or Cheap?
P/E Ratio
TSN trades at 51.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TSN's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values Tyson Foods, Inc. at 1.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.25 times EBITDA. This is generally considered low.
How Well Does TSN Make Money?
Net Profit Margin
For every $100 in sales, Tyson Foods, Inc. keeps $0.81 as profit after all expenses.
Operating Margin
Core operations generate 2.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.50 in profit for every $100 of shareholder equity.
ROA
Tyson Foods, Inc. generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tyson Foods, Inc. generates limited operating cash flow of $2.16B, signaling weaker underlying cash strength.
Free Cash Flow
Tyson Foods, Inc. generates weak or negative free cash flow of $1.24B, restricting financial flexibility.
FCF Per Share
Each share generates $3.48 in free cash annually.
FCF Yield
TSN converts 5.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
51.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TSN Stacks Against Its Sector Peers
| Metric | TSN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 51.22 | 21.18 | Worse (Expensive) |
| ROE | 2.50% | 1130.00% | Weak |
| Net Margin | 0.81% | -2195.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.83 | 2.53 | Neutral |
| ROA | 1.29% | -611087.00% (disorted) | Weak |
TSN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tyson Foods, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.50%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-76.01%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-41.98%
Industry Style: Defensive, Dividend, Low Volatility
Declining