Tyson Foods (TSN) AI Stock Analysis

• Market Cap: $21.23B
• Dividend Yield: 3.26%
• Average Volume (3M): 2.47M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.15
• Revenue Growth: 1.27%
• EPS Growth: N/A
• Country: US
• Employees: 138,000
• Sector: Consumer Defensive
• Sector Strength: 81
• Industry: Agricultural Farm Products
• EPS (TTM): 0.92
• Shares Outstanding: 286,185,360
• 10 Day Avg. Volume: 2,407,338
• 30 Day Avg. Volume: 2,466,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $63.60
• Price Target Upside: 13.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Tyson Foods' overall stock score of 69 reflects its strong financial performance, positive earnings call, and strategic corporate events that bolster its market positioning. The financial health is robust, with improving profitability metrics, but relatively low margins suggest room for improvement. Technical analysis indicates bearish trends, although valuation and dividend yield provide some support. The company's strategic guidance and recent corporate actions further enhance its outlook, making it a moderately attractive investment.

Positive Factors

Chicken Segment Profitability

Lower beef volumes and higher prices would likely be a boon to chicken demand, benefiting chicken segment profitability.

Financial Performance

TSN raised FY2025 profit guidance on stronger Chicken outlook, showing control over controllable factors.

Operational Improvement

Momentum in US chicken margins continues, with improved operations and healthy industry fundamentals leading to record profits.

Negative Factors

Beef Segment Challenges

Tight cattle supply creates continued Beef losses, with no signs of herd rebuilding, impacting earnings recovery.

Earnings Uncertainty

Despite potential profit boosts in Chicken, total company upside is uncertain due to challenging conditions in other segments.

Pork Segment Margins

TSN’s outlook is limited by multi-year compression in Beef margins and below normal Pork margin outlook.

Tyson Foods Business Overview & Revenue Model

Company Description

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products; and supplies poultry breeding stock; sells specialty products, such as hides and meats. It also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats under the Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and Gallo Salame brands. The company also offers its products under Tyson and ibp brands. It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors who serve restaurants and food service operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors, as well as through independent brokers and trading companies. The company was founded in 1935 and is headquartered in Springdale, Arkansas.

How the Company Makes Money

Tyson Foods makes money primarily through the sale of its protein-based products, including fresh and frozen chicken, beef, and pork. The company's revenue model is largely based on wholesale distribution to retail customers such as grocery stores and foodservice establishments. Tyson Foods also earns revenue through its Prepared Foods segment, which includes the sale of ready-to-eat meals, snacks, and other value-added products. Key revenue streams for Tyson include domestic sales in the United States, which is its largest market, as well as international sales, with a focus on expanding markets in Asia and other regions. Significant partnerships with major retailers and foodservice chains, along with a focus on operational efficiency and cost management, contribute to Tyson Foods' earnings.

Tyson Foods Financial Statement Overview

Summary

Overall, Tyson Foods demonstrates solid financial health with stable profitability and a strong cash flow position. The balance sheet shows moderate leverage and a stable equity base. However, revenue growth is modest, and there is a slight decline in free cash flow, which may require strategic focus to ensure sustained growth and resilience in changing market conditions.

Income Statement

Tyson Foods shows a solid performance with a TTM gross profit margin of 7.28% and a net profit margin of 1.96%. The revenue growth rate from the previous period is 0.57%, indicating stability but limited growth. The EBIT margin stands at 3.28%, and the EBITDA margin is 5.61%, reflecting consistent profitability. While profitability is positive, the growth rates are modest, indicating a potential area for improvement.

Balance Sheet

The company maintains a balanced financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage. The return on equity (ROE) is 5.68%, showing decent efficiency in generating returns from equity. The equity ratio of 49.61% suggests a stable capital structure. However, the relatively high debt level could pose risks if market conditions change unfavorably.

Cash Flow

Tyson Foods has a strong cash flow position with an operating cash flow to net income ratio of 2.21, indicating robust cash generation from operations. The free cash flow to net income ratio is 1.21, showing effective conversion of profits into free cash. The free cash flow growth rate is -12.75%, reflecting a decline compared to the previous period, which may warrant attention.

Breakdown
Sep 2024	Sep 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.31B	52.88B	53.28B	47.05B	43.19B
	Gross Profit
3.63B	2.63B	6.67B	6.53B	5.38B
	EBIT
1.41B	-395.00M	4.41B	4.40B	3.11B
	EBITDA
2.97B	1.00B	5.70B	5.66B	4.32B
	Net Income Common Stockholders
800.00M	-648.00M	3.24B	3.05B	2.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.72B	573.00M	1.03B	2.51B	1.42B
	Total Assets
37.10B	36.25B	36.82B	36.31B	34.46B
	Total Debt
9.79B	9.51B	8.32B	9.35B	11.34B
	Net Debt
8.07B	8.93B	7.29B	6.84B	9.92B
	Total Liabilities
18.59B	18.00B	17.01B	18.45B	19.07B
	Stockholders Equity
18.39B	18.13B	19.70B	17.72B	15.25B
Cash Flow		Free Cash Flow
1.46B	-187.00M	800.00M	2.63B	2.67B
	Operating Cash Flow
2.59B	1.75B	2.69B	3.84B	3.87B
	Investing Cash Flow
-888.00M	-2.30B	-1.94B	58.00M	-1.42B
	Financing Cash Flow
-581.00M	88.00M	-2.32B	-2.73B	-1.47B

Tyson Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSN, the sentiment is Negative. The current price of 56.08 is below the 20-day moving average (MA) of 60.32, below the 50-day MA of 60.80, and below the 200-day MA of 59.64, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 38.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSN.

Tyson Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	$4.95B	4.59	48.27%	7.29%	60.00%	259.01%
FDP	76 Outperform	$1.60B	10.91	7.51%	3.14%	-0.64%	―
SFD	72 Outperform	$9.03B	―		―	―	―
TSN	69 Neutral	$21.23B	20.11	5.01%	3.26%	1.27%	―
ADM	68 Neutral	$22.98B	13.11	7.78%	4.20%	-9.01%	-43.53%
BG	67 Neutral	$10.61B	9.91	10.95%	3.43%	-10.78%	-45.77%
Sector *	64 Neutral	$8.89B	14.71	5.02%	174.26%	3.57%	3.84%

Tyson Foods Corporate Events

Tyson Foods Secures $2.5 Billion Credit Agreement

On April 15, 2025, Tyson Foods, Inc. entered into a new Revolving Credit Agreement, replacing its previous agreement from 2021. The new agreement provides for $2.5 billion in aggregate commitments, with options for extensions and additional commitments. This financial move is expected to strengthen Tyson Foods’ liquidity and operational flexibility, potentially impacting its market positioning positively.

Spark’s Take on TSN Stock

According to Spark, TipRanks’ AI Analyst, TSN is a Outperform.

Tyson Foods shows impressive financial and operational strength, particularly highlighted by strong earnings and strategic leadership changes. Positive technical indicators support bullish momentum, though caution is advised due to potential overbought conditions. Fair valuation and a solid dividend yield further underpin the stock’s attractiveness, warranting an overall score of 75.

To see Spark’s full report on TSN stock, click here.

Tyson Foods Announces Leadership Changes for 2025

On February 25, 2025, Tyson Foods announced significant leadership changes with Devin Cole appointed as Group President of Poultry, succeeding Wes Morris, who will retire early next year. Brady Stewart’s role has been expanded to include oversight of the Prepared Foods segment, alongside his current responsibilities. These changes are part of Tyson Foods’ strategic focus on operational excellence and global growth, reinforcing its commitment to delivering value to customers, consumers, and shareholders.