Tyson Foods, Inc. (TSN) stock analysis

P/E above its 5-year median

Tyson Foods's P/E of 37.0 is above its own 5-year median of 20.8.

P/E above the industry

Tyson Foods's P/E of 37.0 is above the Food and Kindred Products median of 21.0.

EV/EBITDA above its 5-year median

Tyson Foods's EV/EBITDA of 10.8 is above its 5-year median of 9.9.

P/B below the industry

Tyson Foods's price-to-book of 1.17 is below the Food and Kindred Products median of 2.12.

Trading above fair value

The share price of $59.87 is above our fair value estimate of $51.10.

Margin of safety under 20%

The price is 17.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -47.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -26.8% over the last twelve months, against a 5-year average of -25.5% a year.

Growing faster than the industry

Revenue grew 2.9% over the last twelve months; the Food and Kindred Products median is 0.6%.

Guidance raised

Tyson Foods raised its fiscal 2026 total company adjusted operating income outlook on Aug 3, 2026.

Gross margin slipping

Gross margin was 6.1% over the last twelve months, against 7.2% a year earlier.

Return on equity under 15%

Return on equity was 3.2% over the last twelve months and averaged 7.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.6%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Tyson Foods's return on equity of 3.2% is below the Food and Kindred Products median of 6.2%.

Earnings shrank over 5 years

Net income shrank 25.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.0% over the last twelve months, against a 5-year average of 2.7%.

Net margin below the industry

Tyson Foods's net margin of 1.0% is below the Food and Kindred Products median of 2.3%.

High debt

Debt is 44.3% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 74.3% five years ago to 44.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.0% of total debt.

Interest not well covered

Operating income covers interest expense 3.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.43 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.23; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Tyson Foods paid dividends worth 3.4% of the share price over the last twelve months.

Yield below Treasuries

The 3.4% 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; Tyson Foods yields 3.4%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 122% of net income, leaving little room.

Covered by free cash flow

Dividends take 60.5% of free cash flow.