Tyson Foods (TSN) AI Stock Analysis

• Market Cap: $21.13B
• Dividend Yield: 3.27%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.17
• Revenue Growth: 1.27%
• EPS Growth: N/A
• Country: US
• Employees: 138,000
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Consumer Products - Foods
• EPS (TTM): 3.02
• Shares Outstanding: 286,185,360
• 10 Day Avg. Volume: 2,705,261
• 30 Day Avg. Volume: 2,571,258
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.40
• Price to Cash Flow (P/CF): -5.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $65.44
• Price Target Upside: 7.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Tyson Foods shows impressive financial and operational strength, particularly highlighted by strong earnings and strategic leadership changes. Positive technical indicators support bullish momentum, though caution is advised due to potential overbought conditions. Fair valuation and a solid dividend yield further underpin the stock's attractiveness, warranting an overall score of 75.

Positive Factors

Financial Performance

Tyson Foods reported better than expected Chicken margins, contributing to a much better than expected EPS for the first quarter.

Profit Guidance

TSN raised FY2025 profit guidance on stronger Chicken outlook, showing control over controllable factors.

Negative Factors

Beef Margins

Tight cattle supply creates continued Beef losses, with no signs of herd rebuilding, impacting earnings recovery.

Tyson Foods Business Overview & Revenue Model

Company Description

Tyson Foods, Inc. is a leading global food company and one of the world's largest processors and marketers of chicken, beef, and pork. Headquartered in Springdale, Arkansas, Tyson Foods operates through various segments, including Chicken, Beef, Pork, and Prepared Foods, offering a diverse range of protein-based and prepared food products. The company supplies its products to retail and foodservice customers, including supermarkets, restaurants, and institutional customers, both domestically and internationally.

How the Company Makes Money

Tyson Foods makes money primarily through the sale of its protein-based products, including fresh and frozen chicken, beef, and pork. The company's revenue model is largely based on wholesale distribution to retail customers such as grocery stores and foodservice establishments. Tyson Foods also earns revenue through its Prepared Foods segment, which includes the sale of ready-to-eat meals, snacks, and other value-added products. Key revenue streams for Tyson include domestic sales in the United States, which is its largest market, as well as international sales, with a focus on expanding markets in Asia and other regions. Significant partnerships with major retailers and foodservice chains, along with a focus on operational efficiency and cost management, contribute to Tyson Foods' earnings.

Tyson Foods Financial Statement Overview

Summary

Tyson Foods shows solid financial health with stable profitability and a strong cash flow position. The balance sheet exhibits moderate leverage and a stable equity base. However, revenue growth is modest, and there's a slight decline in free cash flow, indicating a need for strategic focus on growth and resilience.

Income Statement

Tyson Foods shows a solid performance with a TTM gross profit margin of 7.28% and a net profit margin of 1.96%. The revenue growth rate from the previous period is 0.57%, indicating stability but limited growth. The EBIT margin stands at 3.28%, and the EBITDA margin is 5.61%, reflecting consistent profitability. While profitability is positive, the growth rates are modest, indicating a potential area for improvement.

Balance Sheet

The company maintains a balanced financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage. The return on equity (ROE) is 5.68%, showing decent efficiency in generating returns from equity. The equity ratio of 49.61% suggests a stable capital structure. However, the relatively high debt level could pose risks if market conditions change unfavorably.

Cash Flow

Tyson Foods has a strong cash flow position with an operating cash flow to net income ratio of 2.21, indicating robust cash generation from operations. The free cash flow to net income ratio is 1.21, showing effective conversion of profits into free cash. The free cash flow growth rate is -12.75%, reflecting a decline compared to the previous period, which may warrant attention.

Breakdown
TTM	Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.61B	53.31B	52.88B	53.28B	47.05B	43.19B
	Gross Profit
3.90B	3.63B	2.63B	6.67B	6.53B	5.38B
	EBIT
1.76B	1.41B	-395.00M	4.41B	4.40B	3.11B
	EBITDA
3.37B	2.97B	1.00B	5.70B	5.66B	4.32B
	Net Income Common Stockholders
1.05B	800.00M	-648.00M	3.24B	3.05B	2.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.18B	1.72B	588.00M	1.03B	2.51B	1.42B
	Total Assets
37.47B	37.10B	36.25B	36.82B	36.31B	34.74B
	Total Debt
10.96B	9.79B	9.51B	8.32B	9.35B	11.34B
	Net Debt
8.78B	8.07B	8.93B	7.29B	6.84B	9.92B
	Total Liabilities
19.24B	18.59B	18.00B	17.01B	18.45B	19.14B
	Stockholders Equity
18.09B	18.39B	18.13B	19.70B	17.72B	15.46B
Cash Flow		Free Cash Flow
1.27B	1.46B	-187.00M	800.00M	2.63B	2.67B
	Operating Cash Flow
2.32B	2.59B	1.75B	2.69B	3.84B	3.87B
	Investing Cash Flow
-743.00M	-888.00M	-2.30B	-1.94B	58.00M	-1.42B
	Financing Cash Flow
-750.00M	-581.00M	88.00M	-2.32B	-2.73B	-1.47B

Tyson Foods Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSN, the sentiment is Positive. The current price of 60.74 is above the 20-day moving average (MA) of 58.83, above the 50-day MA of 57.32, and above the 200-day MA of 58.60, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 60.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSN.

Tyson Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	81 Outperform	$12.78B	11.80	25.63%	―	2.93%	237.51%
LANC	76 Outperform	$5.27B	33.58	16.57%	1.91%	1.77%	21.41%
TSN	75 Outperform	$21.13B	20.01	5.74%	3.27%	1.27%	―
SYY	75 Outperform	$36.65B	19.25	87.49%	2.71%	3.95%	-5.04%
CAG	66 Neutral	$12.16B	24.89	5.53%	5.50%	-2.00%	-50.02%
HRL	64 Neutral	$15.87B	20.98	9.54%	3.94%	-1.84%	-5.14%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%

Tyson Foods Corporate Events

Tyson Foods Announces Leadership Changes for 2025

On February 25, 2025, Tyson Foods announced significant leadership changes with Devin Cole appointed as Group President of Poultry, succeeding Wes Morris, who will retire early next year. Brady Stewart’s role has been expanded to include oversight of the Prepared Foods segment, alongside his current responsibilities. These changes are part of Tyson Foods’ strategic focus on operational excellence and global growth, reinforcing its commitment to delivering value to customers, consumers, and shareholders.