Tractor Supply Co. (TSCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Costco Wholesale Corp.

Ulta Beauty, Inc.

Casey's General Stores, Inc.

Walmart, Inc.

Williams-Sonoma, Inc.

Target Corp.

Penske Automotive Group, Inc.

Tractor Supply Co.

AutoZone, Inc.

O'Reilly Automotive, Inc.

CarMax, Inc.

Why is Tractor Supply Co. ?

High Management Efficiency with a high ROCE of 45.10%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.13 times

Healthy long term growth as Net Sales has grown by an annual rate of 7.89% and Operating profit at 4.32%

Flat results in Mar 26

INTEREST(Q) At USD 19.11 MM has Grown at 13.38%
INVENTORY TURNOVER RATIO(HY) Lowest at 3.07 times
OPERATING PROFIT(Q) Lowest at USD 360.03 MM

With ROCE of 31.85%, it has a attractive valuation with a 6.17 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 -44.69%, its profits have fallen by -0.5%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.69% 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 Report

Verdict Report

How 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tractor Supply Co.

-44.69%

-1.49

30.76%

S&P 500

22.24%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

100.00%

ROCE (avg)

45.10%

ROE (avg)

54.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.23

EV to EBIT

19.38

EV to EBITDA

14.50

EV to Capital Employed

6.17

EV to Sales

1.83

PEG Ratio

Dividend Yield

1.90%

ROCE (Latest)

31.85%

ROE (Latest)

42.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 2,773.19

DIVIDEND PAYOUT RATIO(Y)

Highest at 77.05%

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

-8What is not working for the Company

INTEREST(Q)

At USD 19.11 MM has Grown at 13.38%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.07 times

OPERATING PROFIT(Q)

Lowest at USD 360.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.02 %

PRE-TAX PROFIT(Q)

Lowest at USD 214.32 MM

NET PROFIT(Q)

Lowest at USD 164.52 MM

EPS(Q)

Lowest at USD 0.31

Here's what is working for Tractor Supply Co.

Dividend per share

Highest at USD 2,773.19 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 77.05%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.16% (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

Here's what is not working for Tractor Supply Co.

Interest

At USD 19.11 MM has Grown at 13.38%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 360.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 214.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 164.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.31

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 3.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio