10Y annualized return is
positive but below market average
at 3.6% per year
TSN has met or exceeded earnings expectations in
some
recent quarters (6/10)
Attractive Price Relative to Sales
Reasonable EV/EBITDA Ratio
Stable Operating Profit Margin
Decent Free Cash Flow per Share
Strong Liquidity Ratios
Manageable Debt Levels
🏆 Strong Financial Performance
🛡️ Market Leadership and Customer Focus
💪 Operational Excellence
🚀 Innovation and Product Development
🌍 International Growth Potential
📈 Positive Consumer Trends
High P/E Ratio
Low Net Profit Margin
Interest Coverage Ratio
⚠️ Challenges from Cattle Cycle
Tyson Foods demonstrates strong business quality with robust financial performance, a leading market position, and operational excellence. Future prospects look promising due to innovation, international growth potential, and favorable consumer trends, although challenges from the cattle cycle could impact short-term performance.
Analysis Date: February 3, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Tyson Foods, Inc. is a big food company that processes and sells meat products. They focus on four main types of meat: beef, pork, chicken, and prepared foods like frozen meals and snacks. Tyson makes products like hot dogs, bacon, and ready-to-eat sandwiches, which you can find in grocery stores. They also provide meat to restaurants and food services, making it easy for people to enjoy a variety of meals.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Tyson Foods (TSN) reachead $61.21 at the closing of the latest trading day, reflecting a +0.91% change compared to its last close.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$114.09
Current Market Price: $58.83
IV/P Ratio: 1.94x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
48.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for TSN
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (20.18)
P/B ratio ≤ 1.5 (1.15)
Current ratio ≥ 2.0 (2.11x)
Long-term debt < Net current assets (1.83x)
Margin of safety (48.0%)
TSN does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
5.76%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
7.28%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
1.96%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
With an operating profit margin of 3.28%, TSN shows that it can maintain a reasonable level of profitability from its operations.
The free cash flow per share of 3.58 indicates a solid cash generation capability, which can be used for dividends, reinvestment, or paying down debt.
The net profit margin of 1.96% is relatively low, indicating that the company retains only a small portion of its revenues as profit after all expenses.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.53x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
2.11x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
The current ratio of 2.11 and quick ratio of 1.04 suggest that TSN has a strong liquidity position and can easily meet its short-term obligations.
The debt-to-equity ratio of 0.53 indicates a balanced use of debt in financing, which is manageable and does not pose significant risk to the company.
While the interest coverage ratio of 3.54 is decent, it could be a concern if the company's earnings were to decline significantly, affecting its ability to cover interest expenses.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Tyson Foods reported its best quarterly performance in over two years, with significant increases in adjusted operating income and earnings per share. The adjusted operating income rose by $248 million, a remarkable 60%, and adjusted earnings per share grew by 65%. This growth reflects the strength of their diversified multi-protein portfolio and operational excellence.
Tyson maintains a leading market position with nearly 75% of U.S. households purchasing a Tyson product in the past year. The company emphasizes customer and consumer obsession, which has led to improved operational performance and strong relationships with strategic customers.
Tyson's disciplined approach to capital expenditures and working capital management has resulted in robust cash flow, allowing them to reduce net leverage from 4.1 times to 2.3 times. This financial discipline supports their long-term strategy and shareholder returns.
Tyson has the largest innovation pipeline in its prepared foods segment, with successful product launches contributing to growth. The company is focused on expanding distribution and optimizing operations to drive profitability.
The international segment has shown record quarterly adjusted operating income, indicating strong demand and potential for further expansion in global markets, particularly in Asia.
Consumer focus on protein consumption is rising, with 71% of U.S. consumers looking to increase their protein intake. This trend aligns well with Tyson's product offerings and market strategy.
Tyson is facing ongoing challenges posed by the current cattle cycle, which may impact the beef segment's performance in the near term. Limited cattle supply and typical seasonal impacts are expected.