TSN Investment Analysis Report & Stock Research, Tyson Foods, Inc.

Tyson Foods, Inc. (TSN)

TSN Stock Report

2-Year Price History

View Larger TSN Chart
NYSE:TSN
$15.32
(2/9 11:24AM)
+1.5%
Open$15.16 Mkt Cap$4.6 Billion
High$15.35 52Wk High$15.25
Low$15.12 52Wk Low$7.51
Volume2.0 Million Avg Vol 10D6.1 Million

Ockham's Rating/Recommendation Summary

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TSN Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TSN the high and low end of the Price to Sales per share ratios are 0.28x and 0.17x respectively.

Notice that TSN's current Price to Sales per share ratio is 0.21x, which is somewhat below its historical weighted average by 7%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

TSN Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on TSN from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for TSN, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

TSN Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for TSN to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for TSN is $0.16 producing a current dividend yield of 1.09%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from TSN against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from TSN over previous years was 2.29% while the lowest dividend yield was 0.66%. With that range in mind, TSN’s current dividend yield is a full 26.10% below its median dividend yield historically. This is a negative from our perspective.

Peer Comparison

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Tyson Foods, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including TSN) 10.93 7.07 » 18.16 1.21 0.67 » 2.13 9.55% 16.95%
*10 year range does not include current year values
Hormel Foods Corp. HRL $5.2 Billion $38.86 11.08 7.04 » 14.32 0.80 0.51 » 1.00 6.45% 15.66%
Tyson Foods, Inc. TSN $4.6 Billion $15.09 -1.00 3.24 » 18.55 0.21 0.10 » 0.34 0.20% 2.97%
Brown-Forman Corp.- Shs -B- Non-Voting BFB $4.5 Billion $49.56 13.75 9.71 » 27.79 2.09 1.15 » 5.12 7.60% 23.64%
McCormick & Company, Inc. MKC $4.2 Billion $35.56 11.96 9.41 » 18.01 1.48 1.00 » 2.02 4.79% 22.96%
PepsiAmericas, Inc. PAS $3.6 Billion $28.95 9.80 4.17 » 11.89 0.78 0.36 » 1.03 8.81% 12.00%
Ralcorp Holdings, Inc. RAH $3.5 Billion $64.57 8.06 4.99 » 18.77 0.90 0.34 » 1.48 20.09% 10.48%
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Zero Hedge

News Developing on Zero Hedge for TSN

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on TSN from Zero Hedge.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Tyson Foods, Inc. underperforming. As of this week's report, we have an Overvalued valuation on TSN because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Tyson Foods, Inc. has actually sunk a bit in comparison to the others.

“… RECENT RATING ACTIONSALLIANT TECHSYSTEMS INC (ATK)MGM MIRAGE (MGM)NCR CORP (NCR)BEAZER HOMES USA INC (BZH)TYSON FOODS INC (TSN)PENN NATIONAL GAMING INC (PENN)AMERICAN AXLE & ... …”

8:28A, Feb. 08,2010 TSN $14.65 Tyson Foods, Inc.
Zero Hedge

Tyson Foods, Inc. News Appeared on Zero Hedge

News has broken via the television and viral blogs regarding TSN, so investors should take an interest in learning what was said.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Tyson Foods, Inc. has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on TSN because the price has gotten too high to be justified by the fundamentals. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Tyson Foods, Inc. underperforming.

“… TYSON FOODS, beats exp. , posts Q1 profit of $160M; sales up 1. 8% at $6. 64B. Xstrata full-year profit declines 41% to $2. 77B on lower coal price. …”

1:14P, Feb. 05,2010 TSN $14.66 Tyson Foods, Inc.
Power Lunch

TSN Gets Mentioned in the Financial Media

The latest news from Power Lunch on TSN is available through Ockham's news analytics platform RazorWire.

At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. The latest news on TSN has created quite a stir as the stock is trading $0.74 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; TSN has received less coverage from the financial media in business television and blogs.

“… TYSON FOODS better than expected earnings up 3. 75%. With fidelity, you can take your trading around the world, because now you can trade u. S. …”

11:29A, Feb. 05,2010 TSN $14.84 Tyson Foods, Inc.
The Call

The Call: What is Happening with Tyson Foods, Inc. Now?

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Tyson Foods, Inc..

The latest news on TSN has created quite a stir as the stock is trading $0.85 higher in today's session. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; TSN has received less coverage from the financial media in business television and blogs.

“… It is TYSON FOODS? Keep plucking that chicken. Here we come. 14. 83 a share there, up 6% on the day as that company beat big-time 42 cents a share, versus 18 cents a share. …”

11:01A, Feb. 05,2010 TSN $14.86 Tyson Foods, Inc.
The Call

Check Out The Call and News on TSN

News has broken via the television and viral blogs regarding TSN, so investors should take an interest in learning what was said.

The crowd at The Motley Fool does not like TSN and believes that it will Underperform. At Ockham, we are not advising buying Tyson Foods, Inc. at the current price level because according to our methodology it is not supported by the fundamentals. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Tyson Foods, Inc. has been talked about more than normal recently. Check the news on this stock because there is a catalyst that has allowed this stock to advance 6.24% today.

“… TYSON FOOD among the biggest gainers and the dow right now is trading to the down side, well off the lows of the session. Intel and microsoft among the. …”

3:17P, Jan. 14,2010 TSN $14.04 Tyson Foods, Inc.
Countdown to the Closing Bell

TSN's Back in the News After More than a Month on Countdown to the Closing Bell

It's been at least a month since we noticed any major news coverage of TSN, so the story in Countdown to the Closing Bell may get the ball rolling.

The crowd at The Motley Fool does not like TSN and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TSN. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TSN has been less covered in the news compared to the rest of our universe of stocks. Check the news on this stock because there is a catalyst that has allowed this stock to advance 5.47% today.

“… TYSON FOODS giving a boost to the stock upgrading to outperform and now vote world's largest meat producer is under a bond and of love it. …”

9:48A, Jan. 14,2010 TSN $13.81 Tyson Foods, Inc.
Squawk On The Street

TSN Back in the News on Squawk On The Street

There has not been much to report from TSN in the last few weeks at least, but Squawk On The Street talked about the stock recently.

The Ockham valuation currently has a Fairly Valued stance on TSN because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Tyson Foods, Inc. has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Tyson Foods, Inc. underperforming.

“… Until that press release crossed it was TYSON FOODS up 3. 5% raised to outperform at credit suisse this morning. So there you go. …”

9:37A, Jan. 14,2010 TSN $13.79 Tyson Foods, Inc.
The Opening Bell on Fox Business

After the Close: TSN on The Opening Bell on Fox Business

Something is causing Tyson Foods, Inc. to be a little more active in post market trading, and it was covered by The Opening Bell on Fox Business recently.

We noticed recently that in comparison to all other stocks we analyze in the news; TSN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Tyson Foods, Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… Charles: let's start with TYSON FOODS, they're raised to outperform at credit suisse and follows an upgrade at bmo capital. Last year from july to november. …”

9:27A, Jan. 14,2010 TSN $13.85 Tyson Foods, Inc.
The Opening Bell on Fox Business

Slow Month for News Out of TSN But The Opening Bell on Fox Business Mentions Them

It's been at least a month since we noticed any major news coverage of TSN, so the story in The Opening Bell on Fox Business may get the ball rolling.

Tyson Foods, Inc. receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; TSN has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… Google, TYSON FOODS and starting with buy ratings or upgrades and keep an eye on those, williams-sonoma, names to watch as well. …”

12:32P, Nov. 23,2009 TSN $12.92 Tyson Foods, Inc.
Power Lunch

More News Than Normal on TSN from Power Lunch

We are observing a lot of attention being paid to TSN in the news, so if you hold the stock you may want to take a look at what is going on.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, TSN has been less covered in the news compared to the rest of our universe of stocks. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on TSN. The crowd at The Motley Fool does not like TSN and believes that it will Underperform.

“… TYSON FOODS fourth quarter earnings topping industry analysts were predicting only 26 cents. Tyson shares now trading down about 1%. > > > gold prices continue to soar, though.... …”

View All Tyson Foods, Inc. Stock News

Key Fundamentals

TSN - Tyson Foods, Inc. Fundamentals
Price (2/9 11:24AM) $15.32
Volume (2/9 11:24AM) 2.0 Million
Last Close Price $15.09
10 Day Average Volume 6.1 Million
13 Week Price Range $11.94 - $15.25
52 Week Price Range $7.51 - $15.25
LTM Revenue $26.8 Billion
 
Shares Outstanding (09/2009) 376.6 Million
Market Capitalization $4.6 Billion
Shares Held By Institutions 252.7 Million
Institutional Holders 426
% Shares Held By Institutions 82.30%
Earnings Per Share (EPS) ($1.44)
P/E Ratio n/a
Book Value Per Share $12.06
 
Gross Margin 8.30%
Annual Dividend 0.16
Dividend Yield 1.10%
Beta 1.10
Fiscal Year Ends September

About Tyson Foods, Inc.

Tyson Foods, Inc. is considered to operate in the Consumer Goods sector. They specifically operate in the Meat Products business segment contained within the Food & Beverage industry.

The Company produces, distributes and markets chicken, beef, pork, prepared foods and related allied products