NYSE:TSN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: TSN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

TSN

-3.3%

US Food

-4.2%

US Market


1 Year Return

22.4%

TSN

12.3%

US Food

14.0%

US Market

Return vs Industry: TSN exceeded the US Food industry which returned 12.3% over the past year.

Return vs Market: TSN exceeded the US Market which returned 14% over the past year.


Shareholder returns

TSNIndustryMarket
7 Day-5.7%-3.3%-4.2%
30 Day-12.0%-3.4%-1.8%
90 Day-16.1%-0.8%2.6%
1 Year24.8%22.4%15.2%12.3%16.3%14.0%
3 Year27.1%20.8%-3.6%-11.3%43.2%34.0%
5 Year91.7%78.3%38.2%22.0%65.9%47.6%

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?

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSN ($75.59) is trading below our estimate of fair value ($113.49)

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 (13.5x) compared to the Food industry average (22.7x).

PE vs Market: TSN is good value based on its PE Ratio (13.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: TSN is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TSN is good value based on its PB Ratio (1.9x) compared to the US Food industry average (1.9x).


Next Steps

Future Growth

How is Tyson Foods forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSN's forecast earnings growth (8.3% per year) is above the savings rate (1.7%).

Earnings vs Market: TSN's earnings (8.3% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: TSN's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TSN's revenue (2.6% 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?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSN has high quality earnings.

Growing Profit Margin: TSN's current net profit margins (4.7%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: TSN's earnings have grown by 15.4% per year over the past 5 years.

Accelerating Growth: TSN's earnings growth over the past year (3.7%) is below its 5-year average (15.4% per year).

Earnings vs Industry: TSN earnings growth over the past year (3.7%) exceeded the Food industry -5.6%.


Return on Equity

High ROE: TSN's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Tyson Foods's financial position?


Financial Position Analysis

Short Term Liabilities: TSN's short term assets ($7.2B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: TSN's short term assets ($7.2B) do not cover its long term liabilities ($13.7B).


Debt to Equity History and Analysis

Debt Level: TSN's debt to equity ratio (80.5%) is considered high.

Reducing Debt: TSN's debt to equity ratio has reduced from 82.4% to 80.5% over the past 5 years.

Debt Coverage: TSN's debt is well covered by operating cash flow (21.7%).

Interest Coverage: TSN's interest payments on its debt are well covered by EBIT (6.3x 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?

2.22%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateFeb 27 2020Dividend Pay DateMar 13 202015 days from Ex DividendBuy in the next 1 day to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: TSN's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: TSN's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.77%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), 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 (26.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Noel White (61yo)

1.4yrs

Tenure

US$10,398,160

Compensation

Mr. Noel White has been Chief Executive Officer and Director at Tyson Foods, Inc. since September 30, 2018 and served as its President since September 30, 2018 until December 20, 2019. Mr. White was Group  ...


CEO Compensation Analysis

Compensation vs Market: Noel's total compensation ($USD10.40M) is about average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Noel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Noel White
CEO & Director1.4yrsUS$10.40m0.038% $10.6m
Samuel Banks
Executive President & Non-Independent Director2.3yrsUS$277.82k0.0045% $1.2m
Stewart Glendinning
Executive VP & CFO2yrsUS$3.73m0.014% $3.7m
Jay Spradley
Chief Technology Officer2.7yrsUS$3.67m0.0098% $2.7m
Donnie King
Group President & Chief Administration Officer1yrsUS$6.26m0.033% $9.0m
Jon Kathol
VP of Investor Relations & Assistant Secretary8.3yrsno datano data
Amy Tu
Executive VP & General Counsel2.2yrsno data0.0089% $2.5m
Noelle O'Mara
Group President of Prepared Foods & Interim Chief Marketing Officer0.8yrsno data0.0033% $905.1k
Mary Oleksiuk
Executive VP & Chief Human Resources Officer5.4yrsUS$5.19m0.024% $6.6m
Kevin Igli
Chief Environmental0yrsno datano data

2.0yrs

Average Tenure

54yo

Average Age

Experienced Management: TSN's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Noel White
CEO & Director1.4yrsUS$10.40m0.038% $10.6m
Samuel Banks
Executive President & Non-Independent Director2.3yrsUS$277.82k0.0045% $1.2m
Kevin McNamara
Vice Chairman of the Board & Lead Independent Director0yrsUS$267.33k0.0090% $2.5m
John Tyson
Chairman of the Board22.1yrsUS$10.32m0.96% $266.2m
Leslie Baledge
Director0yrsno datano data
Barbara Tyson
Independent Director32.1yrsUS$278.11k0.055% $15.3m
Jonathan Mariner
Independent Director0.8yrsUS$172.50k0.00098% $270.4k
Gaurdie Banister
Independent Director8.3yrsUS$312.78k0.0081% $2.2m
Mikel Durham
Independent Director4.6yrsUS$298.17k0.0020% $543.6k
Robert Thurber
Independent Director11yrsUS$292.23k0.0044% $1.2m

6.4yrs

Average Tenure

62yo

Average Age

Experienced Board: TSN's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TSN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$27.593b
  • Shares outstanding: 365.04m
  • 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 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; and raises and processes chickens into fresh, frozen, and value-added chicken products. It also supplies poultry breeding stock; sells allied products, such as hides and meats; and manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats. The company offers its products primarily under the Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp, State Fair, Gallo Salame, and Golden Island brands. It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors who serve restaurants and foodservice operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors, as well as through independent brokers and trading companies. The company was founded in 1935 and is headquartered in Springdale, Arkansas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:30
End of Day Share Price2020/02/24 00:00
Earnings2019/12/28
Annual Earnings2019/09/28


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.