Tractor Supply Co (TSCO, Financial) has recently garnered significant attention from investors and financial analysts, thanks to its strong financial performance and promising growth prospects. With a current share price of $275.62 and a modest daily gain of 0.86%, despite a slight three-month decline of -1.53%, the company's market position appears robust. A detailed analysis, anchored by the GF Score, indicates that Tractor Supply Co is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, evaluating stocks based on five key aspects of valuation from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Tractor Supply Co boasts a GF Score of 97, reflecting its strong potential for market leadership. The components of the GF Score for Tractor Supply Co are as follows:
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Tractor Supply Co's Business
Tractor Supply Co, with a market cap of $29.73 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 minimal exposure to commercial and industrial farm operations. As of fiscal 2023, Tractor Supply operates 2,254 stores across 49 states, including specialized Petsense 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 resilience is evident in its robust balance sheet and strategic debt management. The company's Interest Coverage ratio stands at an impressive 33.33, significantly above the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 5.46 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.35 further underscores its prudent financial management.
Profitability and Growth Metrics
Tractor Supply Co's profitability is highlighted by its exceptional Profitability Rank and consistent improvement in operating and gross margins over the past five years. The company's Predictability Rank of 4.0 stars reflects its stable operational performance. Growth is another area where Tractor Supply excels, with a Growth Rank of 10/10, supported by a 3-Year Revenue Growth Rate of 13.6%, outperforming 69.07% of its industry peers.
Conclusion
Considering Tractor Supply Co's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. Investors seeking 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.
