Tractor Supply Co (TSCO, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance. With a current share price of $274.45, Tractor Supply Co has experienced a daily gain of 1.42%, alongside a three-month change of 1.46%. A detailed analysis, supported by the GF Score, indicates that Tractor Supply Co is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a comprehensive score that ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Tractor Supply Co boasts a GF Score of 96, signaling strong future performance prospects.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Understanding Tractor Supply Co's Business
Tractor Supply Co, with a market cap of $29.6 billion and annual sales of $14.71 billion, is the largest operator of retail farm and ranch stores in the United States. The company primarily serves recreational farmers and ranchers, with a minor exposure to commercial and industrial farm operations. It operates 2,254 stores under the Tractor Supply banner across 49 states, including 81 Orscheln Farm and Home stores and 205 Petsense by Tractor Supply stores. The company's revenue streams are diversified across livestock, equine & agriculture (27%), companion animal (25%), and seasonal & recreation (22%).
Financial Strength Breakdown
Tractor Supply Co's financial robustness is evident in its Interest Coverage ratio of 33.33, significantly above the benchmark of 5 set by Benjamin Graham. The company's Altman Z-Score of 5.44 further underscores its stability, indicating a strong defense against financial distress. Additionally, a Debt-to-Revenue ratio of 0.35 showcases prudent debt management.
Profitability and Growth Metrics
Tractor Supply Co's profitability is highlighted by an impressive Operating Margin of 10.19% in 2023, showing consistent growth over the past five years. The company's Gross Margin also reflects an upward trend, reaching 35.92% in 2023. These figures demonstrate Tractor Supply Co's increasing efficiency in revenue conversion to profit.
On the growth front, Tractor Supply Co has a 3-Year Revenue Growth Rate of 13.6%, outperforming 69.12% of its peers in the Retail - Cyclical industry. The company's EBITDA growth rates over the past three and five years further highlight its expanding operational capabilities.
Conclusion
Considering Tractor Supply Co's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
