Tractor Supply Company logged a 0.8% change during today's morning session, and is now trading at a price of $196.92 per share.
Over the last year, Tractor Supply Company logged a -4.0% change, with its stock price reaching a high of $251.17 and a low of $193.58. Over the same period, the stock underperformed the S&P 500 index by -16.0%. As of April 2023, the company's 50-day average price was $211.14. Tractor Supply Company operates as a rural lifestyle retailer in the United States. Based in Brentwood, TN, the large-cap Consumer Discretionary company has 52,000 full time employees. Tractor Supply Company has offered a 2.0% dividend yield over the last 12 months.
A Pattern of Improving Cash Flows With a Flat Trend:
| 2018-02-22 | 2019-02-21 | 2020-02-20 | 2021-02-18 | 2022-02-17 | 2023-02-23 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $7,256 | $7,911 | $8,352 | $10,620 | $12,731 | $14,205 |
| Gross Margins | 34.0% | 34.0% | 34.0% | 35.0% | 35.0% | 35.0% |
| Operating Margins | 9% | 9% | 9% | 10% | 10% | 10% |
| Net Margins | 6.0% | 7.0% | 7.0% | 7.0% | 8.0% | 8.0% |
| Net Income (MM) | $423 | $532 | $562 | $749 | $997 | $1,089 |
| Net Interest Expense (MM) | -$14 | -$18 | -$20 | -$29 | -$27 | -$31 |
| Depreciation & Amort. (MM) | -$166 | -$177 | -$196 | -$217 | -$270 | -$343 |
| Earnings Per Share | $3.3 | $4.31 | $4.66 | $6.38 | $8.69 | $9.71 |
| EPS Growth | n/a | 30.61% | 8.12% | 36.91% | 36.21% | 11.74% |
| Diluted Shares (MM) | 128 | 123 | 121 | 117 | 115 | 112 |
| Free Cash Flow (MM) | $871 | $971 | $1,027 | $1,687 | $1,766 | $2,129 |
| Capital Expenditures (MM) | -$239 | -$276 | -$215 | -$292 | -$627 | -$772 |
| Net Current Assets (MM) | $205 | $271 | -$1,934 | -$1,867 | -$2,514 | -$3,290 |
| Long Term Debt (MM) | $434 | $381 | $366 | $984 | $986 | $1,164 |
Tractor Supply Company has a pattern of improving cash flows, healthy debt levels, and a strong EPS growth trend. However, the firm has slimmer gross margins than its peers. Finally, we note that Tractor Supply Company has weak revenue growth and a flat capital expenditure trend, weak operating margings with a stable trend, and just enough current assets to cover current liabilities.
Tractor Supply Company's Valuation Is in Line With Its Sector Averages:
Tractor Supply Company has a trailing twelve month P/E ratio of 21.1, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $10.93, the company has a forward P/E ratio of 19.3. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 19.7%. On this basis, Tractor Supply Company's PEG ratio is 1.07. Using instead the 10.2% weighted average of Tractor Supply Company's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 2.07, which suggests that its shares may be overpriced. Furthermore, Tractor Supply Company is likely overvalued compared to the book value of its equity, since its P/B ratio of 10.29 is higher than the sector average of 3.12. The company's shares are currently trading 212.2% above their Graham number. Ultimately, Tractor Supply Company's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
There's an Analyst Consensus of Some Upside Potential for Tractor Supply Company:
The 29 analysts following Tractor Supply Company have set target prices ranging from $207.0 to $280.0 per share, for an average of $233.17 with a buy rating. As of April 2023, the company is trading -9.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Tractor Supply Company has an above average percentage of its shares sold short because 11.8% of the company's shares are sold short. Institutions own 95.8% of the company's shares, and the insider ownership rate stands at 0.63%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,531,029,080.
