Tractor Supply Co (TSCO) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

Tractor Supply's EV/EBITDA of 11.6 is below its 5-year median of 15.0.

P/B above the industry

Tractor Supply's price-to-book of 7.20 is above the Consumer discretionary median of 4.67.

Trading above fair value

The share price of $36.74 is above our fair value estimate of $34.76.

Margin of safety under 20%

The price is 5.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.0% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 67.0% over the last twelve months, against a 5-year average of 7.9% a year.

Growing faster than the industry

Revenue grew 3.5% over the last twelve months; the Consumer discretionary median is 2.5%.

Guidance raised

Tractor Supply raised its fiscal year 2026 Net Income outlook on Apr 21, 2026.

Gross margin slipping

Gross margin was 36.2% over the last twelve months, against 36.5% a year earlier.

Return on equity over 15%

Return on equity was 70.5% over the last twelve months and averaged 50.5% over five years.

Return on capital over 10%

Return on invested capital was 23.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Tractor Supply's return on equity of 70.5% is above the Consumer discretionary median of 9.9%.

Earnings grew over 5 years

Net income grew 7.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.6% over the last twelve months, against a 5-year average of 7.5%.

Net margin above the industry

Tractor Supply's net margin of 11.6% is above the Consumer discretionary median of 6.2%.

High debt

Debt is 83.8% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 51.2% five years ago to 83.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 54.1% of total debt.

Interest well covered

Operating income covers interest expense 18.0 times.

Short-term assets cover short-term debts

Current assets are 1.38 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.87; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Tractor Supply paid dividends worth 2.6% of the share price over the last twelve months.

Yield below Treasuries

The 2.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Tractor Supply yields 2.6%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 27.0% of net income.

Not covered by free cash flow

Dividends take 172% of free cash flow.