Tractor Supply's needs-based products have been in demand despite economic duress, driving positive consumable, usable, and edible sales. But discretionary demand has suffered, as evidenced by big ticket sales down midsingle digits in its second quarter, provoking near-term caution on shares.
Tractor Supply has room for growth, which should help it achieve 8% average annual EPS growth over the next decade (at the low end of the 8%-11% it had previously expected). A faster rollout of side lot projects, rapid media, and/or big barn sales growth could lead to upside.
Tractor Supply will have to innovate to keep its market leadership position and ensure elevated brand relevance in an intensely competitive retail environment.
|
Metric
|
TSCO
|
LOW
|
TGT
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.80 | 14.56 | 18.70 |
Price/Book Value | 6.29 | — | 3.99 |
Price/Sales | 1.07 | 1.13 | 0.66 |
Price/Cash Flow | 10.30 | 9.82 | 9.12 |
|
Metric
|
TSCO
|
LOW
|
TGT
|
|---|---|---|---|
Quick Ratio | 0.14 | 0.21 | 0.26 |
Current Ratio | 1.33 | 1.10 | 0.99 |
Interest Coverage | 19.80 | 6.39 | 14.19 |
|
Metric
|
TSCO
|
LOW
|
TGT
|
|---|---|---|---|
Return on Assets (Normalized) | 9.71% | 12.91% | 7.80% |
Return on Equity (Normalized) | 42.67% | — | 28.44% |
Return on Invested Capital (Normalized) | 13.33% | 24.31% | 13.84% |
|
1-Day Chart
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United States