Tractor Supply
Market Cap
US$9.6b
Last Updated
2020/03/28 23:55 UTC
Data Sources
Company Financials +
Executive Summary
Tractor Supply Company operates rural lifestyle retail stores in the United States.
Rewards
Risk Analysis
TSCO passed our risk checks.
Snowflake Analysis
Proven track record with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Tractor Supply's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TSCO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
9.5%
TSCO
22.1%
US Specialty Retail
9.9%
US Market
1 Year Return
-15.0%
TSCO
-24.3%
US Specialty Retail
-11.9%
US Market
Return vs Industry: TSCO exceeded the US Specialty Retail industry which returned -24.3% over the past year.
Return vs Market: TSCO underperformed the US Market which returned -11.9% over the past year.
Shareholder returns
| TSCO | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.5% | 22.1% | 9.9% |
| 30 Day | -8.1% | -24.3% | -15.0% |
| 90 Day | -10.0% | -31.5% | -21.5% |
| 1 Year | -13.8%-15.0% | -23.1%-24.3% | -10.0%-11.9% |
| 3 Year | 26.2%20.5% | -1.5%-6.3% | 12.3%5.1% |
| 5 Year | 3.9%-2.9% | 0.3%-7.8% | 32.5%18.1% |
Price Volatility Vs. Market
How volatile is Tractor Supply's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Tractor Supply Company (NASDAQ:TSCO) Potentially Undervalued?2 weeks ago | Simply Wall St
With EPS Growth And More, Tractor Supply (NASDAQ:TSCO) Is Interesting3 weeks ago | Simply Wall St
Don't Sell Tractor Supply Company (NASDAQ:TSCO) Before You Read ThisValuation
Is Tractor Supply undervalued compared to its fair value and its price relative to the market?
24.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TSCO ($83.1) is trading below our estimate of fair value ($110.42)
Significantly Below Fair Value: TSCO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TSCO is poor value based on its PE Ratio (17.7x) compared to the Specialty Retail industry average (8.5x).
PE vs Market: TSCO is poor value based on its PE Ratio (17.7x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: TSCO is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: TSCO is overvalued based on its PB Ratio (6.3x) compared to the US Specialty Retail industry average (0.8x).
Next Steps
Future Growth
How is Tractor Supply forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
6.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TSCO's forecast earnings growth (6.4% per year) is above the savings rate (1.7%).
Earnings vs Market: TSCO's earnings (6.4% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: TSCO's earnings are forecast to grow, but not significantly.
Revenue vs Market: TSCO's revenue (5.6% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: TSCO's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TSCO's Return on Equity is forecast to be very high in 3 years time (45.1%).
Next Steps
Past Performance
How has Tractor Supply performed over the past 5 years?
7.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TSCO has high quality earnings.
Growing Profit Margin: TSCO's current net profit margins (6.7%) are higher than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: TSCO's earnings have grown by 7.9% per year over the past 5 years.
Accelerating Growth: TSCO's earnings growth over the past year (5.7%) is below its 5-year average (7.9% per year).
Earnings vs Industry: TSCO earnings growth over the past year (5.7%) underperformed the Specialty Retail industry 6.8%.
Return on Equity
High ROE: TSCO's Return on Equity (35.9%) is considered high.
Next Steps
Financial Health
How is Tractor Supply's financial position?
Financial Position Analysis
Short Term Liabilities: TSCO's short term assets ($1.8B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: TSCO's short term assets ($1.8B) do not cover its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: TSCO's debt to equity ratio (25.3%) is considered satisfactory.
Reducing Debt: TSCO's debt to equity ratio has increased from 0.1% to 25.3% over the past 5 years.
Debt Coverage: TSCO's debt is well covered by operating cash flow (204.5%).
Interest Coverage: TSCO's interest payments on its debt are well covered by EBIT (37.6x coverage).
Balance Sheet
Inventory Level: TSCO has a high level of physical assets or inventory.
Debt Coverage by Assets: TSCO's debt is covered by short term assets (assets are 4.5x debt).
Next Steps
Dividend
What is Tractor Supply's current dividend yield, its reliability and sustainability?
1.68%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TSCO's dividend (1.68%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: TSCO's dividend (1.68%) is low compared to the top 25% of dividend payers in the US market (5.49%).
Stability and Growth of Payments
Stable Dividend: TSCO's dividends per share have been stable in the past 10 years.
Growing Dividend: TSCO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29%), TSCO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TSCO's dividends in 3 years are forecast to be well covered by earnings (28.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Hal Lawton (45yo)
0.17
Tenure
Mr. Harry A. Lawton, III, also known as Hal, serves as President, Chief Executive Officer and Director of Tractor Supply Company since January 13, 2020. Mr. Lawton served as the President of Macy's, Inc. s ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive VP | 3yrs | US$2.44m | 0.040% $3.8m | |
| Executive VP and Chief Technology | 1.58yrs | US$2.01m | 0.0086% $833.0k | |
| Executive VP | 3.5yrs | US$2.15m | 0.026% $2.5m | |
| President | 0.17yr | no data | 0.034% $3.3m | |
| Senior Vice President of Investor Relations & Public Relations | 2.17yrs | no data | no data | |
| Senior Vice President of Marketing | 5.08yrs | no data | 0.0092% $882.2k | |
| Executive VP & Chief Supply Chain Officer | 4.33yrs | no data | 0.0085% $817.6k | |
| Executive VP & Chief Stores Officer | 4.58yrs | no data | 0.0054% $523.5k | |
| Executive VP & Chief Merchandising Officer | 2.92yrs | no data | 0.0067% $647.0k | |
| Senior Vice President of Ecommerce | 0.25yr | no data | no data |
3.0yrs
Average Tenure
45.5yo
Average Age
Experienced Management: TSCO's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.17yr | no data | 0.034% $3.3m | |
| Independent Director | 12.83yrs | US$293.45k | 0.016% $1.6m | |
| Chairman Emeritus | 12.33yrs | US$1.20m | no data | |
| Independent Director | 1.83yrs | US$256.95k | 0.000090% $8.7k | |
| Independent Chairman the Board | 6.17yrs | US$370.44k | 0.025% $2.4m | |
| Independent Director | 16.17yrs | US$302.45k | 0.055% $5.3m | |
| Director | 7.08yrs | US$8.66m | 0.24% $22.8m | |
| Independent Director | 2.33yrs | US$244.95k | 0.000090% $8.7k | |
| Independent Director | 6.08yrs | US$279.45k | 0.0084% $806.0k | |
| Independent Director | 3.33yrs | US$237.45k | 0.0019% $188.0k |
6.1yrs
Average Tenure
64yo
Average Age
Experienced Board: TSCO's board of directors are considered experienced (6.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TSCO insiders have bought more shares than they have sold 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
Tractor Supply Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Tractor Supply Company
- Ticker: TSCO
- Exchange: NasdaqGS
- Founded: 1938
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: US$9.642b
- Shares outstanding: 116.02m
- Website: https://www.tractorsupply.com
Number of Employees
Location
- Tractor Supply Company
- 5401 Virginia Way
- Brentwood
- Tennessee
- 37027
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TSCO | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Feb 1994 |
| TR4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1994 |
| TSC | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Feb 1994 |
| TSCO | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Feb 1994 |
| TR4 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Feb 1994 |
| TSCO1 * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Feb 1994 |
| T1SC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Tractor Supply Company operates rural lifestyle retail stores in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. It provides its products under the 4health, Producer’s Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Countyline, Ridgecut, Dumor, Royal Wing, Groundwork, Traveller, Huskee, Treeline, JobSmart, TSC Tractor Supply Co, Paws & Claws, and Untamed brand names. As of December 28, 2019, it operated 2,024 retail stores in 49 states. The company operates its retail stores under the Tractor Supply Company, Del’s Feed & Farm Supply, and Petsense names. It also operates Websites under the TractorSupply.com and Petsense.com names. The company sells its products to recreational farmers, ranchers, and others, as well as tradesmen and small businesses. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 23:55 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/28 |
| Annual Earnings | 2019/12/28 |
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.