NasdaqGS:TSCO

Stock Analysis Report

Executive Summary

Tractor Supply Company operates rural lifestyle retail stores in the United States.


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

TSCOIndustryMarket
7 Day9.5%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 Year26.2%20.5%-1.5%-6.3%12.3%5.1%
5 Year3.9%-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

Valuation

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

NamePositionTenureCompensationOwnership
Kurt Barton
Executive VP3yrsUS$2.44m0.040% $3.8m
Robert Mills
Executive VP and Chief Technology1.58yrsUS$2.01m0.0086% $833.0k
Benjamin Parrish
Executive VP3.5yrsUS$2.15m0.026% $2.5m
Harry Lawton
President0.17yrno data0.034% $3.3m
Mary Pilkington
Senior Vice President of Investor Relations & Public Relations2.17yrsno datano data
Christi Korzekwa
Senior Vice President of Marketing5.08yrsno data0.0092% $882.2k
Colin Yankee
Executive VP & Chief Supply Chain Officer4.33yrsno data0.0085% $817.6k
John Ordus
Executive VP & Chief Stores Officer4.58yrsno data0.0054% $523.5k
Jonathan Estep
Executive VP & Chief Merchandising Officer2.92yrsno data0.0067% $647.0k
Letitia Webster
Senior Vice President of Ecommerce0.25yrno datano data

3.0yrs

Average Tenure

45.5yo

Average Age

Experienced Management: TSCO's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harry Lawton
President0.17yrno data0.034% $3.3m
George MacKenzie
Independent Director12.83yrsUS$293.45k0.016% $1.6m
Joseph Scarlett
Chairman Emeritus12.33yrsUS$1.20mno data
Denise Jackson
Independent Director1.83yrsUS$256.95k0.000090% $8.7k
Cynthia Jamison
Independent Chairman the Board6.17yrsUS$370.44k0.025% $2.4m
Edna Morris
Independent Director16.17yrsUS$302.45k0.055% $5.3m
Gregory Sandfort
Director7.08yrsUS$8.66m0.24% $22.8m
Thomas Kingsbury
Independent Director2.33yrsUS$244.95k0.000090% $8.7k
Mark Weikel
Independent Director6.08yrsUS$279.45k0.0084% $806.0k
Ramkumar Krishnan
Independent Director3.33yrsUS$237.45k0.0019% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSCONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1994
TR4DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994
TSCSWX (SIX Swiss Exchange)YesCommon StockCHCHFFeb 1994
TSCOWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1994
TR4ETLX (Eurotlx)YesCommon StockITEURFeb 1994
TSCO1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNFeb 1994
T1SC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:55
End of Day Share Price2020/03/27 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.