Fact based stock research
Tractor Supply (NasdaqGS:TSCO)
US8923561067
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Tractor Supply stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), Tractor Supply (Specialty Stores, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Tractor Supply are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives). But they show above-average growth (Growth Rank of 69) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on Tractor Supply's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Tractor Supply exhibits low value (Obermatt Value Rank of 17), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 69). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Specialty Stores |
| Index | Employee Focus US, NASDAQ, S&P US Luxury, S&P 500 |
| Size class | XX-Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Tractor Supply
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
13 |
|
22 |
|
17 |
|
| GROWTH | ||||||||
| GROWTH | 84 |
|
49 |
|
49 |
|
69 |
|
| SAFETY | ||||||||
| SAFETY | 48 |
|
70 |
|
59 |
|
69 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
89 |
|
76 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
61 |
|
41 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 59 (better than 59% compared with investment alternatives), Tractor Supply (Specialty Stores, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Tractor Supply are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives). But they show above-average growth (Growth Rank of 69) and are safely financed (Safety Rank of 69, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 59, is a buy recommendation based on Tractor Supply's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Tractor Supply exhibits low value (Obermatt Value Rank of 17), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 69). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 69) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 15 |
|
13 |
|
22 |
|
17 |
|
| GROWTH | ||||||||
| GROWTH | 84 |
|
49 |
|
49 |
|
69 |
|
| SAFETY | ||||||||
| SAFETY | 48 |
|
70 |
|
59 |
|
69 |
|
| COMBINED | ||||||||
| COMBINED | 48 |
|
34 |
|
24 |
|
59 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), Tractor Supply shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Tractor Supply. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 72% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 13 which means that the stock price compared with what market professionals expect for future profits is higher than 87% of comparable companies, indicating a low value concerning Tractor Supply's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 25 which means that the stock price compared with what market professionals expect for future profit levels is higher than 75% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 6 is also low. Compared with invested capital, the stock price is higher than for 94% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on Tractor Supply's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Tractor Supply? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Tractor Supply only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 15 |
|
10 |
|
15 |
|
13 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 50 |
|
5 |
|
27 |
|
25 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 6 |
|
8 |
|
7 |
|
6 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 36 |
|
70 |
|
76 |
|
72 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 15 |
|
13 |
|
22 |
|
17 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 69 (better than 69% compared with alternatives), Tractor Supply shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Tractor Supply. Sales Growth has a rank of 70 which means that currently, professionals expect the company to grow more than 70% of its competitors. Both Profit Growth, with a rank of 63, and Stock Returns, with a rank of 77, are also above average. But Capital Growth only has a rank of 26, which means that, currently, professionals expect the company to grow its invested capital less than 74% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 69, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 61 |
|
61 |
|
57 |
|
70 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 81 |
|
17 |
|
77 |
|
63 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
66 |
|
16 |
|
26 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 76 |
|
65 |
|
45 |
|
77 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 84 |
|
49 |
|
49 |
|
69 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 69 (better than 69% compared with alternatives), the company Tractor Supply has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Tractor Supply is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Tractor Supply. Liquidity is at 88, meaning the company generates more profit to service its debt than 88% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 41, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 59% of its competitors. Leverage is also high at a rank of 46, which means that the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 69 (better than 69% compared with alternatives), Tractor Supply has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 55 |
|
54 |
|
47 |
|
46 |
|
| REFINANCING | ||||||||
| REFINANCING | 41 |
|
40 |
|
42 |
|
41 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 59 |
|
89 |
|
81 |
|
88 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 48 |
|
70 |
|
59 |
|
69 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
46 |
|
67 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
57 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
97 |
|
68 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
74 |
|
75 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
89 |
|
76 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Tractor Supply from November 14, 2024.
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