ScoreWhy is Tractor Supply Co. ?
1
High Management Efficiency with a high ROCE of 45.10%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.76 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 7.89% and Operating profit at 4.32%
4
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at USD 1,635.26 MM
- DIVIDEND PAYOUT RATIO(Y) Highest at 53.63%
- DIVIDEND PER SHARE(HY) Highest at USD 637.8
5
With ROCE of 31.85%, it has a very attractive valuation with a 6.67 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -12.73%, its profits have fallen by -0.5%
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -12.73% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tractor Supply Co. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tractor Supply Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Tractor Supply Co.
-12.73%
-0.56
28.55%
S&P 500
17.99%
0.93
19.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.89%
EBIT Growth (5y)
4.32%
EBIT to Interest (avg)
37.95
Debt to EBITDA (avg)
0.76
Net Debt to Equity (avg)
1.01
Sales to Capital Employed (avg)
3.33
Tax Ratio
22.19%
Dividend Payout Ratio
44.67%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
45.10%
ROE (avg)
54.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
Price to Book Value
11.12
EV to EBIT
20.95
EV to EBITDA
15.67
EV to Capital Employed
6.67
EV to Sales
1.98
PEG Ratio
NA
Dividend Yield
1.75%
ROCE (Latest)
31.85%
ROE (Latest)
42.46%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,635.26 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 53.63%
DIVIDEND PER SHARE(HY)
Highest at USD 637.8
RAW MATERIAL COST(Y)
Fallen by 0.61% (YoY
-5What is not working for the Company
ROCE(HY)
Lowest at 45.18%
INTEREST(Q)
At USD 16.85 MM has Grown at 14.9%
CASH AND EQV(HY)
Lowest at USD 378.75 MM
Here's what is working for Tractor Supply Co.
Operating Cash Flow
Highest at USD 1,635.26 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 637.8 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 53.63% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by 0.61% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 127.76 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Tractor Supply Co.
Interest
At USD 16.85 MM has Grown at 14.9%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Cash and Eqv
Lowest at USD 378.75 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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