Tyson Foods Inc - Class A
Exchange: NYSESector: Consumer DefensiveIndustry: Farm Products
Tyson Foods, Inc. is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family™ and has a broad portfolio of iconic products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, sustainably, and affordably, now and for future generations. Headquartered in Springdale, Arkansas, the company had approximately 138,000 team members on September 28, 2024. Visit www.tysonfoods.com.
Did you know?
Capital expenditures decreased by 36% from FY24 to FY25.
Current Price
$63.68
-0.61%GoodMoat Value
$178.96
181.0% undervaluedProfile
Valuation (TTM)
Market Cap$22.48B
P/E112.41
EV$28.16B
P/B1.24
Shares Out353.05M
P/Sales0.41
Revenue$55.13B
EV/EBITDA13.38
Tyson Foods Inc - Class A (TSN) Stock Analysis
GoodMoat Analysis
Tyson Foods appears to fail the initial moat and quality gate of the GoodMoat framework, with a likely low moat score and weak financial quality indicators. The GoodMoat target price suggests a significant margin of safety, but this is at odds with the company's current fundamental profile.
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Tyson Foods is a major processor and marketer of chicken, beef, and pork. Applying the GoodMoat framework, the business likely scores low on moat identification. While it possesses scale, the farm products industry is highly competitive with low switching costs and pricing power, making it difficult to establish a durable competitive advantage. Key quality indicators are weak: a P/E of 108x and an ROE of 1.1% are far from the high-return thresholds sought, profit margins are thin at 0.4%, and the 5.1% revenue growth is modest. The 6.6% FCF yield and 3.2% dividend yield are positive notes, but overall financial strength is unfavourable. According to the Decision Framework, a business with a likely moat score below 5 and multiple weak quality ratings fails Step 1 and does not qualify for further valuation analysis, regardless of price. The provided GoodMoat target of $178.96 implies a massive margin of safety, which is intriguing but requires reconciling with the fundamental assessment. For a value investor, this discrepancy between a high target price and weak business metrics makes Tyson an unusual case that warrants investigation to understand the assumptions behind the valuation, though the core business profile does not meet the framework's criteria for a high-quality company with a durable moat. Analysis based on data as of 2024-05-15.
Market Cap$22.48B
Current Price$63.68
P/E Ratio112.41
Forward P/E—
PEG Ratio-1.48
EPS$1.33
Book Value$51.22
P/B Ratio1.24
TSN Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 2.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 7.6B
Revenue
42.4B
FY19
43.2B
FY20
47.0B
FY21
53.3B
FY22
52.9B
FY23
53.3B
FY24
54.4B
FY25
Net Income
2.0B
FY19
2.1B
FY20
3.0B
FY21
3.2B
FY22
—
FY23
800M
FY24
474M
FY25
TSN 52-Week Range
$49.89
$65.64
50-Day MA: $63.01200-Day MA: $57.58
Did you know?
Net income compounded at -21.2% annually over 6 years.
Tyson Foods Inc - Class A (TSN) Financial Summary
Tyson Foods Inc - Class A (TSN) is a Consumer Defensive company in the Farm Products industry, listed on NYSE. The stock currently trades at $63.68 with a market capitalization of $22.48B.
Key valuation metrics include a P/E ratio of 112.41, price-to-book ratio of 1.24, and EPS of $1.33. The company reports a profit margin of 0.4% and return on equity of 1.1%.
TSN Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $22.48B |
| P/E Ratio | 112.41 |
| EPS | $1.33 |
| P/B Ratio | 1.24 |
| P/S Ratio | 0.41 |
| EV/EBITDA | 13.38 |
| Dividend Yield | 3.10% |
| Profit Margin | 0.4% |
| Return on Equity | 1.1% |
| Debt/Equity | 0.49 |
TSN Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $42.41B | $1.98B |
| FY20 | $43.19B | $2.06B |
| FY21 | $47.05B | $3.05B |
| FY22 | $53.28B | $3.24B |
| FY23 | $52.88B | $-648.00M |
| FY24 | $53.31B | $800.00M |
| FY25 | $54.44B | $474.00M |
Tyson Foods Inc - Class A (TSN) Valuation
Based on GoodMoat's DCF model, Tyson Foods Inc - Class A has a fair value estimate of $178.96. At the current price of $63.68, the stock appears 64.4% undervalued relative to our intrinsic value estimate.
TSN Quality Indicators
Tyson Foods Inc - Class A maintains a profit margin of 0.4% and an operating margin of 2.0%. Return on equity stands at 1.1%. The current ratio is 1.55. Debt-to-equity ratio is 0.49.
About Tyson Foods Inc - Class A
Tyson Foods, Inc. is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family™ and has a broad portfolio of iconic products and brands including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, Aidells® and ibp®. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, sustainably, and affordably, now and for future generations. Headquartered in Springdale, Arkansas, the company had approximately 138,000 team members on September 28, 2024. Visit www.tysonfoods.com.
TSN Free Cash Flow
Tyson Foods Inc - Class A generated $1.43B in trailing twelve-month free cash flow, representing an FCF yield of 6.36%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
TSN Shares Outstanding
Tyson Foods Inc - Class A has 0.35 billion shares outstanding at a share price of $63.68, giving it a market capitalization of $22.48B.