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 $289.88, Tractor Supply Co has experienced a daily gain of 1.31% and a three-month change of 7.44%. 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 aspects are weighted differently to calculate a total score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Tractor Supply Co boasts a GF Score of 96 out of 100, highlighting its strong potential for market outperformance.
Understanding Tractor Supply Co's Business
Tractor Supply Co, with a market cap of $31.27 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 and has a minimal 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 strength is evident in its robust balance sheet and impressive financial ratios. The company's Interest Coverage ratio stands at 33.33, significantly above the benchmark set by Benjamin Graham. Additionally, its Altman Z-Score of 5.57 indicates a strong defense against financial distress. The strategic management of its debt, with a Debt-to-Revenue ratio of 0.35, further solidifies its financial health.
Profitability and Growth Metrics
Tractor Supply Co's profitability is highlighted by its impressive Profitability Rank and consistent growth in operating and gross margins over the past five years. The company's Predictability Rank of 4.0 stars reflects its stable operational performance. In terms of growth, Tractor Supply Co has demonstrated a strong commitment to expansion, with a 3-Year Revenue Growth Rate of 13.6%, outperforming 69.03% of its peers in the Retail - Cyclical industry.
Conclusion
Considering Tractor Supply Co's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score underscores the company's exceptional position for potential market 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.
