Tractor Supply Co (TSCO, Financial), a leading player in the Retail - Cyclical industry, has been making waves in the stock market. As of July 27, 2023, the company's stock price stands at $223.13, with a market cap of $24.45 billion. The stock has seen a gain of 4.01% today and a slight increase of 0.10% over the past four weeks. In this article, we will delve into the company's GF Score of 97/100, a comprehensive stock performance ranking system developed by GuruFocus. The GF Score is a crucial tool for investors, as it provides a holistic view of a company's financial health, profitability, growth, value, and momentum.
Financial Strength Analysis
Tractor Supply Co's Financial Strength Rank stands at 6/10. This rank measures the robustness of a company's financial situation, taking into account its debt burden, debt to revenue ratio, and Altman Z-Score. TSCO's interest coverage is 39.60, indicating a low debt burden. The company's debt to revenue ratio is 0.33, suggesting a healthy balance between debt and revenue. Furthermore, its Altman Z-Score of 5.26 indicates a low risk of bankruptcy.
Profitability Rank Analysis
The company's Profitability Rank is a perfect 10/10. This rank assesses a company's profitability and its likelihood of remaining profitable. TSCO's Operating Margin is 9.91%, and its Piotroski F-Score is 8, indicating a healthy financial situation. The company has shown consistent profitability over the past 10 years and has a Predictability Rank of 4.5.
Growth Rank Analysis
Tractor Supply Co's Growth Rank is also 10/10, reflecting strong revenue and profitability growth. The company's 5-year revenue growth rate is 18.40%, and its 3-year revenue growth rate is 22.30%. Additionally, its 5-year EBITDA growth rate is 20.70%, indicating robust business operations growth.
GF Value Rank Analysis
The company's GF Value Rank is 7/10, determined by the price-to-GF-Value ratio. This proprietary metric is calculated based on historical multiples, an adjustment factor based on a company's past returns and growth, and future estimates of the business' performance.
Momentum Rank Analysis
Tractor Supply Co's Momentum Rank is 10/10, reflecting strong stock price performance. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
When compared to its main competitors, Tractor Supply Co holds its ground. Ulta Beauty Inc (ULTA, Financial) has a GF Score of 97, Genuine Parts Co (GPC, Financial) has a GF Score of 87, and Best Buy Co Inc (BBY, Financial) has a GF Score of 89.
Conclusion
In conclusion, Tractor Supply Co's overall performance, as reflected by its GF Score and individual ranks, is impressive. The company's strong financial health, profitability, growth, value, and momentum suggest potential for future stock performance. However, as with any investment, it's crucial to conduct thorough research and consider various factors before making a decision.
