Tractor Supply Company

Tractor Supply Company

TSCOยทNASDAQ

$29.14

-8.3%
Consumer CyclicalSpecialty Retail

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. It provides its products under the 4health, Producer's Pride, American Farmworks, Red Shed, Bit & Bridle, Redstone, Blue Mountain, Retriever, C.E. Schmidt, Ridgecut, Countyline, Royal Wing, Dumor, Strive, Groundwork, Traveller, Huskee, Treeline, JobSmart, TSC Tractor Supply Co, Paws & Claws, and Untamed brands. As of June 25, 2022, it operated 2,016 Tractor Supply stores in 49 states; and 178 Petsense stores in 23 states. The company operates its retail stores under the Tractor Supply Company, Del's Feed & Farm Supply, and Petsense names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. The company was founded in 1938 and is based in Brentwood, Tennessee.

At a Glance

Live Snapshot
Market Cap$15.28B
EPS2.0700
P/E Ratio14.08
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 14.1).

Valuation inputs: P/E 14.1, earnings yield +7.1%, momentum -8.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +42.5%, ROIC +13.1%).

Profitability stack: net margin +7.1%, ROE +42.5%, ROIC +13.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +76.4%, momentum -8.3%, net margin +7.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

tsco

Tractor Supply Company Market vs Earnings Trajectory

TSCO ยท NASDAQ

Loading price and EPS data...

Tractor Supply Company

Tractor Supply Company Fair Value Envelope

TSCO ยท NASDAQ

Our analysis suggests that TSCO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $29.14, this represents a potential HIDDEN relative to our calculated worth for Tractor Supply Company.

Intrinsic Value
Current Price: $29.14
3Y+6.0%
5Y+61.0%
10Y+215.0%
3Y+9.0%
5Y+46.0%
10Y+129.0%
3Y+1.0%
5Y+46.0%
10Y+151.0%
3Y+21.0%
5Y+17.0%
10Y+156.0%
3Y+27.0%
5Y-33.0%
10Y+79.0%
3Y+29.0%
5Y+55.0%
10Y+309.0%
Tractor Supply Company

Tractor Supply Company Profit Bridge

TSCO ยท NASDAQ
Revenue15.52B
Cost of Goods Sold (10.36B)
Gross Profit5.16B
Operating Expenses (3.69B)
Operating Income1.47B
Interest Expense (69.14M)
Other Income/Expense-69.14M
Pretax Income1.40B
Income Tax (302.16M)
Net Income1.10B
Net Income
1.10B

Profitability Analysis

Gross Margin

33.2%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

9.5%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

7.1%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

21.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

33.24%
Gross Profit Margin
-8%
3Y-5.0%
5Y-6.0%
10Y-3.0%
9.45%
Operating Profit Margin
-4%
3Y-6.0%
5Y+1.0%
10Y-8.0%
7.06%
Net Profit Margin
-5%
3Y-8.0%
5Y-
10Y+10.0%
42.46%
Return on Equity
-12%
3Y-20.0%
5Y+9.0%
10Y+41.0%
10.02%
Return on Assets
-11%
3Y-22.0%
5Y-6.0%
10Y-39.0%
13.11%
Return on Invested Capital
-10%
3Y-24.0%
5Y-5.0%
10Y-43.0%
TSCO

Tractor Supply Company Cash Conversion Engine

TSCO ยท NASDAQ
Net Income1.10B
Depreciation & Amortization494.01M
Stock-Based Compensation57.06M
Change in Working Capital19.89M
Others-93.06M
Capital Expenditures-894.77M
Free Cash Flow740.49M

Cash Flow Quality Analysis

FCF Conversion Rate

67.6%

Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.

CapEx Intensity

54.7%

Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.

FCF Growth Trend

+16.3%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$19.89M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Solid cash generation: Positive free cash flow with reasonable earnings quality provides financial flexibility for growth investments, debt reduction, or shareholder returns.

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Tractor Supply Company Funding & Solvency Profile

TSCO ยท NASDAQ
Cash & Cash Equivalents224.27M
Net Receivables0.00
Inventory3.58B
Other Current Assets233.73M
Total Current Assets4 B
Property, Plant & Equipment7.16B
Goodwill & Intangible Assets398.21M
Long-Term Investments0.00
Other Non-Current Assets58.27M
Total Non-Current Assets7 B
Total Assets
11.66B

Financial Health Analysis

Current Ratio

1.38x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

3.64x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

1 B

Positive working capital, but relatively tight. The company should monitor cash flow carefully.

Asset Composition

35% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Tractor Supply Company Street Expectations Map

TSCO ยท NASDAQ

Wall Street analysts project that TSCO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 54.73, with estimates ranging from a low of 36.00 to a high of 63.00.

Lowest Target
36.00
23.54%
Consensus Target
54.73
87.82%
Highest Target
63.00
116.20%

The consensus 1-year price target stands at 54.73, with estimates ranging from a low of 36.00 to a high of 63.00.

Analyst Consensus Analysis

Upside Potential

+87.8%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

49.3% spread

Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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Tractor Supply Company Insider Positioning

TSCO ยท NASDAQ

During the last 12 months, insiders have sold $23.97M worth of TSCO shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

215.9K

11.60M

Net Activity

-11.6M

-$11.60M

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

209.3K

12.37M

Net Activity

-12.4M

-$12.37M

Top Buyers

No buying activity

Top Sellers

1
EJS

Estep Jonathan S

Officer: Evp Chief Merchandise Officer

152.2K sharesโ€ข3 transactions

$8.24M

2
BKD

Barton Kurt D

Officer: Evp Chief Financial Officer

93.8K sharesโ€ข3 transactions

$5.96M

3
LIHA

Lawton Iii Harry A

Director, Officer: President & Ceo

84.7K sharesโ€ข1 transactions

$4.50M

4
MRD

Mills Robert D

Officer: Evp Chief Technology Officer

63.0K sharesโ€ข1 transactions

$3.41M

5
WMJ

Weikel Mark J

Director

8.0K sharesโ€ข1 transactions

$479K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $23.97M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
-100%
3Y-100.0%
5Y-100.0%
10Y-100.0%
ย 

tsco Dividend History

TSCO
10Y CAGR +17%
Latest $0.24
Annual $1.17
5 year growth trend
Last Period: +0%