Investment Thesis
Tyson Foods demonstrates stable operational cash generation ($942M OCF, 4.8% FCF margin) but faces significant profitability headwinds with compressed margins (0.6% net margin) and declining earnings (-6.5% YoY net income, -40.9% EPS). The company's moderate leverage (0.41x D/E) is offset by weak interest coverage (1.4x) and minimal return on equity (0.5%), indicating capital is not being deployed efficiently despite substantial asset base.
TSN Strengths
- Strong free cash flow generation of $690M despite margin compression
- Moderate balance sheet leverage with $1.3B cash and 0.41x debt-to-equity ratio
- Stable revenue base at $14.3B with reasonable current ratio of 1.53x
TSN Risks
- Severe profitability deterioration with net margin at 0.6% and ROE at 0.5%
- Declining earnings momentum with -6.5% YoY net income and -40.9% EPS decline
- Low interest coverage ratio of 1.4x creates vulnerability to operational disruptions
- Operating margin of only 2.1% indicates limited pricing power or cost control issues in commodity processing business
Key Metrics to Watch
- Gross margin trend and year-over-year comparison
- Operating cash flow sustainability and working capital efficiency
- Interest coverage ratio improvement and debt reduction trajectory
- EPS growth recovery and net margin expansion
TSN Financial Metrics
TSN Profitability Ratios
TSN Balance Sheet & Liquidity
TSN 5-Year Financial Trend
5-Year Trend Summary: TYSON FOODS, INC.'s revenue has shown modest growth of 2% over the 5-year period. The most recent EPS of $-1.87 indicates the company is currently unprofitable.
TSN Growth Metrics (YoY)
TSN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $13.6B | $85.0M | $0.24 |
| Q3 2025 | $13.4B | $61.0M | $0.17 |
| Q2 2025 | $13.1B | $7.0M | $0.02 |
| Q1 2025 | $13.3B | $107.0M | $0.30 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TSN Capital Allocation
TSN SEC Filings
Access official SEC EDGAR filings for TYSON FOODS, INC. (CIK: 0000100493)