TSN Stock Overview
Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide.
Tyson Foods Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$81.75|
|52 Week High||US$100.72|
|52 Week Low||US$74.43|
|1 Month Change||-0.73%|
|3 Month Change||-4.14%|
|1 Year Change||2.26%|
|3 Year Change||-9.10%|
|5 Year Change||29.25%|
|Change since IPO||876.12%|
Recent News & Updates
The Return Trends At Tyson Foods (NYSE:TSN) Look Promising
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...
Tyson: Does The 10% Drop Following Q3 Earnings Signal A Buy Or A Sell?
Tyson’s recent results succumbed to macroeconomic headwinds. Some segments suffered large double-digit declines in operating income. While the long-term outlook for the stock appears positive, inflationary pressures could dull results over the short to mid-term. Tyson Foods, Inc. (TSN) is one of the globe's largest food companies and holds a leading position among producers of animal protein products. Tyson released Q3 2022 results last week, and the stock initially fell more than 10%. The poor results were largely caused by the current macroeconomic climate. The tight labor market, mounting input costs, and consumers' response to inflationary pressures are all taking a toll on the stock. Although the quarterly results speak volumes regarding macroeconomic pressures, the numbers do not reveal the trends and initiatives that will likely bode well for investors over the long haul. Everybody Has To Eat, Right? The investing community is deluged of late by articles highlighting recession and inflation-resistant stocks. Of course, one theme points to how companies with business models rooted in necessities will hold their ground despite inflationary pressures. Until we are required to purchase oxygen, food will rank at the top of every person's gotta-buy-list. Therein lies why Tyson was deemed an essential business during the pandemic. So companies that sell food products are inflation resistant. Yes, or no? In my article that debuted the day after Christmas, I warned readers that Tyson's business model should not be expected to perform well during periods of high inflation. Tyson and similar companies are often touted as investments that are inflation proof. However, studies by Morningstar reveal that over the last ten years, Tyson was only able to increase its prices on chicken above prevailing inflation about half the time. The same study indicated that over the last five years, Tyson's price increases lagged inflation by 1.5%. However, management touts the company's ability to maneuver its way through mounting inflationary risks. My opinion is buttressed by a list recently put forth by UBS analysts of the Riskiest defensive stocks as a recession looms. Tyson ranked second among fifteen companies "which may not be as defensive as commonly perceived." While perusing the Q3 results, it is apparent that inflationary pressures present a fierce headwind for the stock. Tyson's Q3 Results: A Window Into Weaknesses Taken at a glance, Tyson's Q3 results might not appear particularly poor. Non-GAAP EPS of $1.94 missed by $0.03, but revenue of $13.5B beat consensus by $250M. Furthermore, organic sales grew 9%. Tyson finished the quarter as the market share leader in the majority of the retail core categories in which it competes, the company's e-commerce sales grew 15% versus last year, and the balance sheet grew stronger. The International/Other segment posted volume increases of 11.7% year-to-date and 21.9% versus the same quarter last year. However, digging a bit deeper, there are ample causes for concern. Adjusted operating income fell 27% year-over-year, and adjusted EPS by 28% from the comparable quarter. Q3 marked the first year-over-year fall in Tyson's adjusted operating margin since the outbreak of COVID-19, and the revenue beat was largely driven by Tyson increasing pricing to meet input costs. While organic sales increased 9%, price/mix accounted for 8% of the growth. Total volume was down for both the quarter and year-to-date. Volumes for Prepared Foods dropped 5.5% year-over-year, Pork volumes were down 2.1% year-to-date, and Beef volumes also fell, although they were up 1.3% over the comparable quarter. Those three segments account for 68% of the company's revenues. However, the loss in volumes only tells half the story. Due to increases in input costs, the adjusted operating income of the Beef segment fell year-over-year by 55% and in Pork by 63%. Look no further than the statements provided during the earnings call for the cause of the poor results. Volumes were down both for the third quarter and year-to-date due to supply constraints and a challenging macroeconomic environment impacting consumer demand. …We saw continued increases in cost of goods across the business, in some instances, up to 15%. Notable examples were labor, feed ingredients, live animals and freight costs. …Global demand is being impacted domestically by high retail prices and internationally by the strong dollar, making U.S. pork relatively expensive as compared to alternative sources globally. Stewart Glendinning, EVP and CFO Management now guides for FY22 volumes to fall .21 billion pounds below FY21 numbers. 2022 volumes relative to FY21 for Beef are expected to drop by 1.5%, for Pork by 2.1%, and by Prepared Foods by 5.5%. Positive Developments And Trends Tyson is largely a US-centric company. However, management is making inroads into foreign markets. Therein lies enormous growth potential tied to a burgeoning global middle class that increasingly consumes quantities of animal proteins. Seeking Alpha/Tyson Presentation The 2018 acquisition of Keystone Foods brought eight production facilities under Tyson's banner in the Asia-Pacific region. In 2019, Tyson took a 40% stake in the Brazilian poultry behemoth Grupo Vibra, a company that serves more than 50 countries. That followed a move earlier that year in which Tyson acquired the Thai and European businesses of BRF S.A. That deal included four production facilities in Thailand, and one each in the Netherlands and the United Kingdom. Roughly a month ago, Tyson acquired stakes in two Saudi Arabian companies, Supreme Foods Processing, and Agriculture Development. Both of the companies are subsidiaries of meat provider Tanmiah Food Company. Supreme Foods deals in pre-cooked chicken and beef products and operates a distribution network across the Middle East. Agriculture Development Company operates hatcheries and feed mills and produces broiler chickens. In FY21, Tyson reported $4.8 billion in U.S. export sales and $2 billion in foreign country revenues. In toto, that represented 14% of the company's sales. The International/Other segment reported an increase in volumes of 11.7% year-to-date and 21.9% versus the same quarter last year. Herein lies a long, broad growth path for TSN. From 2000 through 2018, population growth and a burgeoning middle class led to a 40% increase in global protein consumption. Furthermore, Allied Market Research reported the global animal protein market hauled in over $44 billion in 2019. They forecast a CAGR of 5.4% for the global animal protein market through 2027. Recent trade deals will allow Tyson to increase sales to our nearest neighbors. Canada and Mexico are the first and third-largest export markets for US food and agricultural products. Beginning in 2020, the USMCA trade deal increases chicken exports to Canada to 57,000 metric tons over a six-year period. The agreement also allows for an additional 1% annual increase over the following ten years. Imports of Turkey products will also increase by 1,000 metric tons. This doubles the market access allowed by the previous agreements. Management is also working to lower costs and increase production through a variety of initiatives. Tyson's productivity program is designed to deliver $1 billion in savings by FY24. The program incorporates the widespread use of automation to combat labor shortages and employee retention issues. During the Q3 earnings call, management affirmed that the productivity program is delivering results at the upper range of initial projections. Seeking Alpha/Tyson Presentation
Tyson Foods Q3 2022 Earnings Preview
Tyson Foods (NYSE:TSN) is scheduled to announce Q3 earnings results on Monday, August 8th, before market open. The consensus EPS Estimate is $1.97 (-27.0% Y/Y) and the consensus Revenue Estimate is $13.25B (+6.2% Y/Y). Over the last 2 years, TSN has beaten EPS estimates 100% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 9 upward revisions and 2 downward. Revenue estimates have seen 8 upward revisions and 0 downward.
|TSN||US Food||US Market|
Return vs Industry: TSN underperformed the US Food industry which returned 7.6% over the past year.
Return vs Market: TSN exceeded the US Market which returned -8.4% over the past year.
|TSN Average Weekly Movement||3.6%|
|Food Industry Average Movement||6.1%|
|Market Average Movement||7.6%|
|10% most volatile stocks in US Market||17.1%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: TSN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TSN's weekly volatility (4%) has been stable over the past year.
About the Company
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 and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products; and supplies poultry breeding stock; sells specialty products, such as hides and meats.
Tyson Foods Fundamentals Summary
|TSN fundamental statistics|
Is TSN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TSN income statement (TTM)|
|Cost of Revenue||US$44.18b|
Last Reported Earnings
Jul 02, 2022
Next Earnings Date
|Earnings per share (EPS)||11.28|
|Net Profit Margin||7.75%|
How did TSN perform over the long term?See historical performance and comparison
2.2%Current Dividend Yield
Does TSN pay a reliable dividends?See TSN dividend history and benchmarks
|Tyson Foods dividend dates|
|Ex Dividend Date||Aug 31 2022|
|Dividend Pay Date||Sep 15 2022|
|Days until Ex dividend||11 days|
|Days until Dividend pay date||26 days|
Does TSN pay a reliable dividends?See TSN dividend history and benchmarks
Is TSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TSN?
Other financial metrics that can be useful for relative valuation.
|What is TSN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TSN's PE Ratio compare to its peers?
|TSN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
HRL Hormel Foods
TSN Tyson Foods
Price-To-Earnings vs Peers: TSN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the peer average (28x).
Price to Earnings Ratio vs Industry
How does TSN's PE Ratio compare vs other companies in the US Food Industry?
Price-To-Earnings vs Industry: TSN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the US Food industry average (19.1x)
Price to Earnings Ratio vs Fair Ratio
What is TSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||7.3x|
|Fair PE Ratio||20.8x|
Price-To-Earnings vs Fair Ratio: TSN is good value based on its Price-To-Earnings Ratio (7.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).
Share Price vs Fair Value
What is the Fair Price of TSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TSN ($81.75) is trading below our estimate of fair value ($307.84)
Significantly Below Fair Value: TSN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Tyson Foods forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TSN's earnings are forecast to decline over the next 3 years (-3.4% per year).
Earnings vs Market: TSN's earnings are forecast to decline over the next 3 years (-3.4% per year).
High Growth Earnings: TSN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TSN's revenue (1.3% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: TSN's revenue (1.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TSN's Return on Equity is forecast to be low in 3 years time (14%).
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How has Tyson Foods performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TSN has high quality earnings.
Growing Profit Margin: TSN's current net profit margins (7.7%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: TSN's earnings have grown by 9.2% per year over the past 5 years.
Accelerating Growth: TSN's earnings growth over the past year (73%) exceeds its 5-year average (9.2% per year).
Earnings vs Industry: TSN earnings growth over the past year (73%) exceeded the Food industry 5.4%.
Return on Equity
High ROE: TSN's Return on Equity (20.9%) is considered high.
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How is Tyson Foods's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TSN's short term assets ($9.3B) exceed its short term liabilities ($4.7B).
Long Term Liabilities: TSN's short term assets ($9.3B) do not cover its long term liabilities ($12.1B).
Debt to Equity History and Analysis
Debt Level: TSN's net debt to equity ratio (37.3%) is considered satisfactory.
Reducing Debt: TSN's debt to equity ratio has reduced from 106.5% to 42.7% over the past 5 years.
Debt Coverage: TSN's debt is well covered by operating cash flow (36.9%).
Interest Coverage: TSN's interest payments on its debt are well covered by EBIT (16x coverage).
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What is Tyson Foods's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TSN's dividend (2.25%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: TSN's dividend (2.25%) is low compared to the top 25% of dividend payers in the US market (3.97%).
Stability and Growth of Payments
Stable Dividend: TSN's dividends per share have been stable in the past 10 years.
Growing Dividend: TSN's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (16.5%), TSN's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (47.2%), TSN's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Donnie King (60 yo)
Mr. Donnie D. King serves as President and Chief Executive Officer of Tyson Foods, Inc. since June 2, 2021 and serves as its Director since February 2022. Mr. King served as Chief Operating Officer at Tyso...
CEO Compensation Analysis
Compensation vs Market: Donnie's total compensation ($USD9.00M) is below average for companies of similar size in the US market ($USD12.86M).
Compensation vs Earnings: Donnie's compensation has increased by more than 20% in the past year.
Experienced Management: TSN's management team is considered experienced (2.3 years average tenure).
Experienced Board: TSN's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Tyson Foods, Inc.'s employee growth, exchange listings and data sources
- Name: Tyson Foods, Inc.
- Ticker: TSN
- Exchange: NYSE
- Founded: 1935
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Implied Market Cap: US$29.400b
- Shares outstanding: 359.63m
- Website: https://www.tysonfoods.com
Number of Employees
- Tyson Foods, Inc.
- 2200 West Don Tyson Parkway
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/19 00:00|
|End of Day Share Price||2022/08/19 00:00|
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.