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Tyson Foods Inc Class A TSN

Morningstar Rating
$53.38 +0.18 (0.34%)
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Company Report

Chicken and Pork Should Drive Tyson's Recovery in the Near Term, but Beef Will Take Longer

Tyson primarily sells raw beef, pork, and chicken, although it has increased its exposure to prepared foods. Despite the scale it has amassed (with a sales base that exceeds $53 billion), meat is a commodity and carries little to no brand or pricing power, exposing sellers to volatility in both costs and revenue. Tyson’s strategy to sell three meats is intended to offer diversification. But diversification has its costs, and the headwinds of any one meat have weighed on companywide results at times. Additionally, we think there’s limited revenue or cost synergies across different proteins.

Price vs Fair Value

TSN is trading at a 36% discount.
Price
$53.38
Fair Value
$21.00
Uncertainty
Medium
1-Star Price
$714.86
5-Star Price
$14.30
Economic Moat
Tvzq
Capital Allocation
Mkgfqywq

Bulls Say, Bears Say

Bulls

Tyson’s diverse portfolio of proteins can adapt to evolving consumer tastes and preferences more easily than individual protein exposure would give.

Bears

Food is a competitive space, and given Tyson’s undifferentiated commodity portfolio, which lacks brand power, it’s always at risk of price competition.

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News

Trading Information

Previous Close Price
$53.20
Day Range
$52.1153.62
52-Week Range
$44.9463.28
Bid/Ask
$53.01 / $53.80
Market Cap
$19.06 Bil
Volume/Avg
4.5 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
45.62
Price/Sales
0.36
Dividend Yield (Trailing)
3.62%
Dividend Yield (Forward)
3.67%
Total Yield
3.90%

Company Profile

Tyson Foods is a protein-focused food producer, selling raw chicken, beef, pork, and prepared foods. Chicken and beef are its two largest segments, each comprising about one-third of U.S. sales. Prepared foods constitute roughly 20% of sales and include brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, and Sara Lee. However, most of these are in product categories rife with competition where Tyson does not have a massive market share lead. Tyson sells some products overseas, but the international segment accounts for just 5% of total revenue. The company is an active acquirer, with more recent years’ purchases focused on international and food-service markets.
Sector
Consumer Defensive
Industry
Farm Products
Stock Style Box
Mid Core
Total Number of Employees
139,000

Competitors

Valuation

Metric
TSN
PPC
HRL
Price/Earnings (Normalized)
45.6218.8522.19
Price/Book Value
1.052.262.35
Price/Sales
0.360.441.53
Price/Cash Flow
12.859.6315.58
Price/Earnings
TSN
PPC
HRL

Financial Strength

Metric
TSN
PPC
HRL
Quick Ratio
0.610.800.77
Current Ratio
1.491.681.49
Interest Coverage
−1.612.6314.54
Quick Ratio
TSN
PPC
HRL

Profitability

Metric
TSN
PPC
HRL
Return on Assets (Normalized)
−0.20%4.16%6.23%
Return on Equity (Normalized)
−0.39%13.17%10.82%
Return on Invested Capital (Normalized)
0.84%8.08%7.92%
Return on Assets
TSN
PPC
HRL
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