NYSE:TSN

Stock Analysis Report

Executive Summary

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide.

Snowflake

Fundamentals

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has Tyson Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

TSN

-1.0%

US Food

1.0%

US Market


1 Year Return

31.0%

TSN

0.07%

US Food

8.0%

US Market

Return vs Industry: TSN exceeded the US Food industry which returned 0.1% over the past year.

Return vs Market: TSN exceeded the US Market which returned 8% over the past year.


Shareholder returns

TSNIndustryMarket
7 Day-3.7%-1.0%1.0%
30 Day-7.3%-3.2%-0.07%
90 Day-1.3%-2.6%-1.0%
1 Year33.8%31.0%3.0%0.07%10.4%8.0%
3 Year22.3%16.0%-3.2%-11.7%46.2%36.7%
5 Year124.4%108.7%42.3%25.3%64.3%46.2%

Price Volatility Vs. Market

How volatile is Tyson Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tyson Foods undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSN ($80.97) is trading below our estimate of fair value ($189.1)

Significantly Below Fair Value: TSN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TSN is good value based on its PE Ratio (13.4x) compared to the Food industry average (25.5x).

PE vs Market: TSN is good value based on its PE Ratio (13.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: TSN is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TSN is overvalued based on its PB Ratio (2.1x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Tyson Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSN's forecast earnings growth (16.9% per year) is above the savings rate (2.7%).

Earnings vs Market: TSN's earnings (16.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: TSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TSN's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TSN's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TSN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tyson Foods performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TSN's earnings have grown significantly by 20.6% per year over the past 5 years.

Accelerating Growth: TSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TSN had negative earnings growth (-24%) over the past year, making it difficult to compare to the Food industry average (-24%).


Return on Equity

High ROE: TSN's Return on Equity (15.6%) is considered low.


Return on Assets

ROA vs Industry: TSN has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: TSN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tyson Foods's financial position?


Financial Position Analysis

Short Term Liabilities: TSN's short term assets ($7.4B) exceeds its short term liabilities ($5.6B)

Long Term Liabilities: TSN's short term assets (7.4B) do not cover its long term liabilities (13.9B)


Debt to Equity History and Analysis

Debt Level: TSN's debt to equity ratio (89%) is considered high

Reducing Debt: TSN's debt to equity ratio has increased from 29.1% to 89% over the past 5 years.

Debt Coverage: TSN's debt is well covered by operating cash flow (20.5%).

Interest Coverage: TSN's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: TSN has a high level of physical assets or inventory.

Debt Coverage by Assets: TSN's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Tyson Foods's current dividend yield, its reliability and sustainability?

1.85%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Tyson Foods before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TSN's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TSN's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: TSN's dividends per share have been stable in the past 10 years.

Growing Dividend: TSN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.6%), TSN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSN's dividends in 3 years are forecast to be well covered by earnings (24.7% payout ratio).


Next Steps

Management

What is the CEO of Tyson Foods's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Noel White (61yo)

1.1yrs

Tenure

US$5,736,937

Compensation

Mr. Noel White has been President, Chief Executive Officer and Director at Tyson Foods, Inc. since September 30, 2018. Mr. White was Group President of Fresh Meats & International at Tyson Foods, Inc. unti ...


CEO Compensation Analysis

Compensation vs. Market: Noel has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Noel's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: TSN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TSN's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$996,29817 May 19
Stephen Stouffer
EntityIndividual
Shares12,000
Max PriceUS$83.02
SellUS$500,28216 May 19
Douglas Ramsey
EntityIndividual
Shares6,114.12
Max PriceUS$81.82
SellUS$160,55001 Apr 19
Scott Rouse
EntityIndividual
Shares2,500
Max PriceUS$64.22
SellUS$127,05326 Feb 19
Chad Martin
EntityIndividual
Shares2,032.85
Max PriceUS$62.50
SellUS$27,22619 Dec 18
Robert Thurber
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$54.46
BuyUS$400,10710 Dec 18
Gaurdie Banister
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares6,897
Max PriceUS$58.01

Ownership Breakdown


Management Team

  • R. Hudson

    Senior VP

    • Tenure: 0yrs
  • Mary Oleksiuk (57yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 5.1yrs
    • Compensation: US$5.19m
  • Noel White (61yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$5.74m
  • Stewart Glendinning (54yo)

    Executive VP & CFO

    • Tenure: 1.7yrs
    • Compensation: US$7.59m
  • Steve Gibbs (47yo)

    Senior VP

    • Tenure: 0.8yrs
  • Donnie King (57yo)

    Group President of International & Chief Administration Officer

    • Tenure: 0.7yrs
    • Compensation: US$7.99m
  • Jon Kathol

    VP of Investor Relations & Assistant Secretary

    • Tenure: 8yrs
  • Jay Spradley (53yo)

    Executive VP & Chief Technology Officer

    • Tenure: 2.3yrs
  • Amy Tu (51yo)

    Executive VP & General Counsel

    • Tenure: 1.8yrs
  • Noelle O’Mara

    Group President of Prepared Foods & Interim Chief Marketing Officer

    • Tenure: 0.4yrs

Board Members

  • Kevin McNamara (62yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$255.00k
  • John Tyson (66yo)

    Chairman

    • Tenure: 21.8yrs
    • Compensation: US$10.00m
  • Barbara Tyson (70yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$264.60k
  • Cheryl Miller (46yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$265.00k
  • Gaurdie Banister (62yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$291.05k
  • Noel White (61yo)

    President

    • Tenure: 1.1yrs
    • Compensation: US$5.74m
  • Jeff Schomburger (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$250.58k
  • Mikel Durham (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$265.00k
  • Robert Thurber (72yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$265.00k
  • Samuel Banks (46yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$250.00k

Company Information

Tyson Foods, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tyson Foods, Inc.
  • Ticker: TSN
  • Exchange: NYSE
  • Founded: 1935
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$29.529b
  • Shares outstanding: 364.69m
  • Website: https://www.tysonfoods.com

Number of Employees


Location

  • Tyson Foods, Inc.
  • 2200 West Don Tyson Parkway
  • Springdale
  • Arkansas
  • 72762
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSNNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1980
TF7ADB (Deutsche Boerse AG)YesClass A Common StockDEEURJan 1980
0LHRLSE (London Stock Exchange)YesClass A Common StockGBUSDJan 1980
TSN *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNJan 1980
TSNF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 1 COM CLASS'A' USD0.10BRBRLMay 2019

Biography

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:42
End of Day Share Price2019/10/21 00:00
Earnings2019/06/29
Annual Earnings2018/09/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.