Tractor Supply's shares have declined 37% year to date through June 30, primarily from concerns around stubbornly depressed comparable sales (set for a fourth year below 2%) and recent weakness in companion animal. We think soft pet demand is transitory, however, rather than structural.
Tractor Supply has room for growth, which should help it achieve 9% average annual EPS growth over the next decade (in line with the 8%-11% it expects). 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 a fiercely competitive retail environment.
|
Metric
|
TSCO
|
LOW
|
HD
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.11 | 16.76 | 22.76 |
Price/Book Value | 6.38 | — | 23.81 |
Price/Sales | 1.03 | 1.32 | 1.98 |
Price/Cash Flow | 9.95 | 11.45 | 17.33 |
|
Metric
|
TSCO
|
LOW
|
HD
|
|---|---|---|---|
Quick Ratio | 0.08 | 0.10 | 0.23 |
Current Ratio | 1.38 | 1.09 | 1.04 |
Interest Coverage | 21.16 | 6.49 | 8.61 |
|
Metric
|
TSCO
|
LOW
|
HD
|
|---|---|---|---|
Return on Assets (Normalized) | 9.67% | 13.43% | 13.90% |
Return on Equity (Normalized) | 42.44% | — | 125.51% |
Return on Invested Capital (Normalized) | 13.23% | 25.53% | 21.61% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Alimentation Couche-Tard Inc
ANCTF
| — | LOCK|>#@Y# | $60B | |||
| Casey's General Stores Inc
CASY
| LOCK|Sf^>Pb@ | LOCK|JSF& | $32B | |||
| Williams-Sonoma Inc
WSM
| LOCK|&p@@wg | LOCK|^g | $27B | |||
| Ulta Beauty Inc
ULTA
| LOCK|l<!$#wdW | LOCK|^&C$Z | $21B | |||
| Dick's Sporting Goods Inc
DKS
| LOCK|w?^x%<> | LOCK|xQT$ | $19B | |||
| Best Buy Co Inc
BBY
| LOCK|#fGQZ$Y | LOCK|^?cx | $18B | |||
| Murphy USA Inc
MUSA
| LOCK|SW#@P<>f | LOCK|rJ?L@ | $11B | |||
| Bath & Body Works Inc
BBWI
| LOCK|^FCQFst | LOCK|yb | $4B | |||
| RH Class A
RH
| LOCK|Jm$t@BP | LOCK|p& | $4B |
/author-service-images-prod-us-east-1.publishing.aws.arc.pub/morningstar/3559e02b-f74d-4a72-a821-b50f61ba05e9.jpg)
United States