Corporate Webpages Tyson Foods, Inc.
When it comes to chicken, we feel Tyson Foods, Inc. (TSN) makes
a product superior to many of its competitors like say, Foster
Farms. Chick-a-fil in the fast food service industry agrees
with us. Tyson's headquarters is located near Wal-Mart's and
these two corporations enjoy a close relationship. Yet we are
given to wonder why Wal-Mart offers Tyson's less high-quality
(uncooked and un-microwavable) products when most grocery chains
offer the higher-end pre-cooked variety for about $1 more per
package. But our confidence in Tyson was somewhat lessened
when we realize it made a major acquisition of Iowa Beef
Processors in order to become a major player in the beef and
pork industry. For several years prior to the acquisition, Iowa
Beef Processors had a reputation for unsafe practices, recalls
of e-coli-contaminated meats, inhumane practices toward animal
slaughter, and incidents of worker safety violations. It got
so bad toward the end, Iowa Beef's profits were affected by
forced plant shutdowns and other fines and penalties. From what
we can see from the news, the situation hasn't changed all that
much at the former Iowa Beef plants, as worker injuries and
recalls of products seem to be continuing. But it doesn't seem
to have put much of a dent in Tyson's earnings. What does have
the potential to put a dent there is high grain prices.
The first thing we noted was an inability on our part to find
any "Chairman's Letter to Stockholders" for the past two years.
The passing of previous CEO Don Tyson and his replacement before
his death by "Donnie" Smith may have had something to do with
this and a different management style.
The stock of this company is in a definite channel formation,
and the company's size, coupled with its being near the top of
the channel (or "rolling stock") formation suggests to us it is
an ideal candidate for buying puts. Food processors have been
having a hard time of late due to economic conditions and increased
costs, although so far Tyson seems to be surviving well by
simply increasing prices. Demand elasticity puts a limit on
this solution, however.
The company does have some strong fundamentals, at least
according to researchers, analysts, and the Zenith Index. We
probably should have added a test for degree of intangibles in
our Zenith Index test however, as the company is carrying a lot
of goodwill on its books. It also appears to have a cash flow
problem of late.
Tyson has a recent ongoing partnership with a biofuels
corporation and is moving into the area of converting animal
waste into fuels that can be used even for aircraft jet fuel.
The profitability from this venture is limited. In the past,
Tyson has diversified into other areas only to refocus on its
core business, selling off interests in failed attempts in
non-core areas. In its "Management's Discussion" it clearly now
focuses on three main segments, poultry, beef, and pork.
Tyson has a growing worldwide presence, especially in China,
India, and Brazil.
The stock pays a small dividend (0.80%) and has a p/e of 11,
making it one of the most desirable of the foods-meats stock groups.
The group as a whole, however, is weak of late.
Executives there are clearly over-compensated, while the company has demonstrated
a willingness to close plants and lay off workers in America when expedient to do so.
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Company Profile |
Company History |
News |
Comparison |




Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Tyson Foods Inc. (TSN ) Sector: Consumer Goods
2200 Don Tyson Parkway Industry: Meat Products
Springdale, AR 72762-6999 Exchange: NYSE
Tyson Foods, Inc., together with its subsidiaries, engages in the
production, distribution, and marketing of chicken, beef, pork, prepared
foods, and related allied products worldwide. The company-Ęs Chicken
segment involves in breeding and raising chickens, as well as processing
live chickens into fresh, frozen, and value-added chicken products. Its
Beef segment processes live fed cattle, and fabricates dressed beef
carcasses into primal and sub-primal meat cuts and case-ready products.
The company-Ęs Pork segment involves in the processing live market hogs,
and fabricating pork carcasses into primal and sub-primal cuts and
case-ready products. Its Prepared Foods segment manufactures and markets
frozen and refrigerated food products, such as pepperoni, bacon, beef and
pork pizza toppings, pizza crusts, flour and corn tortilla products,
appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat
dishes, and processed meats. The company markets and sells its products to
grocery retailers and wholesalers, meat distributors, warehouse club
stores, military commissaries, industrial food processing companies, chain
restaurants or their distributors, international export companies, and
domestic distributors, as well as to foodservice operations, such as plant
and school cafeterias, convenience stores, hospitals, and other vendors.
Tyson Foods, Inc. also markets its allied products to pharmaceutical and
technical products manufacturers, and pork processors. The company was
founded in 1935 and is headquartered in Springdale, Arkansas.
Last Trade: 20.39 52-Week Range: 20.74 - 15.60
Trade Date: 12-15 Avg. Volume: 3,696,810 Shares
Index Membership: Employees: 115,000
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (Low Concern).
EPS: 1.97 Dividend Amount: $ 0.16 Yield: 0.80%
Ex-Dividend Date: Feb 28, 20 Mkt Cap: $ 7,530,000K
Payout Ratio: 8.00%
Last Split Factor (new for old): 3:2 Split Date: Feb 18, 19
Key Statistics:
Enterprise Value: $ 8,840,000K Revenue (ttm) : $ 32,270,000K
Gross Profit: $ 2,200,000K
Earnings before Income Tax, Depreciation and Amortization: $ 1,790,000K
Enterprise Value/Revenue (ttm): 0.27 Revenue per Share: $ 86.50
Enterprise Value/EBITDA (ttm): 4.93 Qtrly Rev Growth (y to y): 12.90%
P/E Ratio (fwd projected): 8.52 P/E Ratio (current): 10.34
P/E Growth Ratio (5 yr expected): 1.31 Operating Margin: 3.98%
Price/Sales Ratio: 0.23 Profit Margin: 2.32%
Price/Book Value: 1.30 Book Value: $ 15.29/sh.
Return on Assets: 7.36% Net Income Avl to Common: $ 750,000K
Return on Equity: 13.39% Diluted Earnings/Share: $ 1.97
Qrtly Earnings Growth (yoy): -54.50%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 716,000K Operating Cash Flow:$ 1,050,000K
Total Debt: $ 2,180,000K Lvgd Free Cash Flow:$ 281,880K
Total Debt/Equity: 38.38
Total Cash/Share: $ 1.94
Current Ratio: 2.01
Share Statistics: Stock Price History:
Shares Outstanding: 369,790K Stk 52-Week Change: 14.02%
Float: 291,700K S&P 500 52-Wk Chng: -2.50%
Sh. Short % of Float: 4.40% 50-Day Moving Avg: 19.66
Short Ratio: 3.90 200-Day Moving Avg: 18.21
% Held by Institutions: 69.60% Beta: 0.71
% Held by Insiders: 2.08%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Dec 11 Mar 12 Sep 12 Sep 13
Average Earnings Estimate 0.35 0.48 2.10 2.39
Average Revenue Estimate 250M 8,520M 34,270M 35,430M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 2.400 EPS Growth (Qrtly YoY): 2.000
PEG Ratio (ttm, 5 yr expected): 6.000 P/E Ratio (ttm): 1.159
Revenue Growth (Qrtly YoY): 3.000
Annual Income Statements: All numbers in thousands)
Period Ending Oct1, 2011 Oct2, 2010 Oct3, 2009
Total Revenue 32,266,000 28,430,000 26,704,000
Cost of Revenue 30,067,000 25,916,000 25,501,000
Gross Profit 2,199,000 2,514,000 1,203,000
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 914,000 929,000 858,000
Non-Recurring Expenses 0 29,000 560,000
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 1,285,000 1,556,000 -215,000
Income from Continuing Operations:
Total Other Income/Expenses Net 31,000 -6,000 -1,000
Earnings Before Interest & Taxes 1,316,000 1,550,000 -216,000
Interest Expense 242,000 347,000 327,000
Income Before Taxes 1,074,000 1,203,000 -543,000
Income Tax Expense 341,000 438,000 7,000
Minority Interest 17,000 15,000 4,000
Net Income from Continuing Op.s 733,000 765,000 -550,000
Non-recurring Events:
Discontinued Operations 0 0 -1,000
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 750,000 780,000 -547,000
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 750,000 780,000 -547,000
Quarterly Income Statements: All numbers in thousands)
Period Ending Oct1, 2011 Jul2, 2011 Apr2, 2011 Jan1, 2011
Total Revenue 8,404,000 8,247,000 8,000,000 7,615,000
Cost of Revenue 8,013,000 7,716,000 7,467,000 6,871,000
Gross Profit 391,000 531,000 533,000 744,000
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 219,000 219,000 230,000 246,000
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss 172,000 312,000 303,000 498,000
Income from Continuing Operations:
Total Other Income/Expenses Net 8,000 9,000 1,000 13,000
Earnings Before Int. & Taxes 180,000 321,000 304,000 511,000
Interest Expense 55,000 58,000 63,000 66,000
Income Before Taxes 125,000 263,000 241,000 445,000
Income Tax Expense 30,000 75,000 85,000 151,000
Minority Interest 2,000 8,000 3,000 4,000
Net Income from Continuing Op.s 80,000 196,000 159,000 298,000
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 97,000 196,000 159,000 298,000
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 97,000 196,000 159,000 298,000
Annual Balance Sheets: All Numbers in Thousands
Period Ending Oct1, 2011 Oct2, 2010 Oct3, 2009
Current Assets:
Cash & Cash Equivalents 716,000 978,000 1,144,000
Short Term Investments 0 0 0
Net Receivables 1,321,000 1,198,000 1,100,000 Inventory 2,587,000 2,274,000 2,009,000
Other Current Assets 156,000 168,000 122,000
Total Current Assets 4,780,000 4,618,000 4,375,000
Long-Term Investments 0 0 0
Property, Plant & Equipt 3,823,000 3,674,000 3,576,000
Goodwill 1,892,000 1,893,000 1,917,000
Intangible Assets 149,000 166,000 187,000
Accumulated Amortization 0 0 0
Other Assets 427,000 401,000 540,000
Deferred Long Term Asset Charges 0 0 0
Total Assets 11,071,000 10,752,000 10,595,000
Current Liabilities:
Accounts Payable 1,264,000 1,110,000 1,013,000
Short/Current Long Term Debt 70,000 401,000 219,000
Other Current Liabilities 1,040,000 1,034,000 761,000
Total Current Liabilities 2,374,000 2,545,000 1,993,000
Long Term Debt 2,112,000 2,135,000 3,258,000
Other Liabilities 476,000 486,000 539,000
Deferred LT Liability Charges 424,000 321,000 309,000
Minority Interest 28,000 35,000 33,000
Negative Goodwill 0 0 0
Total Liabilities 5,414,000 5,522,000 6,132,000
Stockholder Equity:
Misc. Stocks Options Warrants 0 64,000 65,000
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 39,000 39,000 39,000
Retained Earnings 3,801,000 3,113,000 2,399,000
Treasury Stock -365,000 -229,000 -242,000
Capital Surplus 2,261,000 2,243,000 2,236,000
Other Stockholder Equity -79,000 0 -34,000
Total Stockholder Equity 5,657,000 5,166,000 4,398,000
Net Tangible Assets 3,616,000 3,107,000 2,294,000
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Oct1, 2011 Jul2, 2011 Apr2, 2011 Jan1, 2011
Current Assets:
Cash & Cash Equivalents 716,000 981,000 794,000 1,122,000
Short Term Investments 0 0 0 0
Net Receivables 1,321,000 1,334,000 1,256,000 1,180,000
Inventory 2,587,000 2,711,000 2,730,000 2,489,000
Other Current Assets 156,000 146,000 157,000 162,000
Total Current Assets 4,780,000 5,172,000 4,937,000 4,953,000
Long-Term Investments 0 0 0 0
Property, Plant & Equipt 3,823,000 3,802,000 3,762,000 3,714,000
Goodwill 1,892,000 1,895,000 1,895,000 1,894,000
Intangible Assets 149,000 158,000 161,000 163,000
Accumulated Amortization 0 0 0 0
Other Assets 427,000 461,000 471,000 466,000
Deferred LT Asset Charges 0 0 0 0
Total Assets 11,071,000 11,488,000 11,226,000 11,190,000
Current Liabilities:
Accounts Payable 1,264,000 1,193,000 1,126,000 1,212,000
Current Portion LT Debt 70,000 362,000 390,000 424,000
Other Current Liabilities 1,040,000 1,206,000 963,000 1,009,000
Total Current Liabilities 2,374,000 2,761,000 2,479,000 2,645,000
Long Term Debt 2,112,000 2,094,000 2,105,000 2,124,000
Other Liabilities 476,000 457,000 500,000 520,000
Deferred LT Liab. Charges 424,000 393,000 389,000 354,000
Minority Interest 28,000 31,000 39,000 39,000
Negative Goodwill 0 0 0 0
Total Liabilities 5,414,000 5,736,000 5,512,000 5,682,000
Stockholder Equity:
Misc. Options, WarrantS 0 0 65,000 63,000
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 39,000 39,000 39,000 39,000
Retained Earnings 3,801,000 3,719,000 3,538,000 3,395,000
Treasury Stock -365,000 -276,000 -197,000 -226,000
Capital Surplus 2,261,000 2,257,000 2,252,000 2,245,000
Other Stockholder Equity -79,000 13,000 17,000 -8,000
Total Stockholder Equity 5,657,000 5,752,000 5,649,000 5,445,000
Net Tangible Assets 3,616,000 3,699,000 3,593,000 3,388,000
Annual Cash Flow: All Numbers in Thousands
Period Ending Oct1, 2011 Oct2, 2010 Oct3, 2009
Net Income 750,000 196,000 -547,000
Operating Activites:
Depreciation 506,000 497,000 513,000
Adjustments to Net Income 153,000 159,000 631,000
Changes in Accounts Recv'bls -114,000 -79,000 137,000
Changes in Liabilities 98,000 44,000 -243,000
Changes in Inventories -299,000 -239,000 493,000
Changes in Other Op'ing Actv's 0 285,000 -20,000
Total Cash Flow fr Operations 1,046,000 1,432,000 960,000
Investing Activities:
Capital Expenditures -643,000 -550,000 -368,000
Investments -29,000 -4,000 19,000
Other Cash Flows fr Investing 0 54,000 -78,000
Total Cash Flows fr Investing -644,000 -500,000 -427,000
Financing Acitivies:
Dividends Paid -59,000 -59,000 -60,000
Sale or Purchase of Stock -273,000 -48,000 -19,000
Net Borrowings -385,000 -894,000 347,000
Other Cash Flows fr Financing 0 42,000 6,000
Total Cash Flows fr Financing -658,000 -959,000 215,000
Effect of Exchange Rate Change -6,000 1,000 6,000
Change in Cash & Cash Equiv.s -262,000 -26,000 754,000
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Oct1, 2011 Jul2, 2011 Apr2, 2011 Jan1, 2011
Net Income 97,000 196,000 159,000 298,000
Operating Activites:
Depreciation 122,000 128,000 128,000 128,000
Adjustments to Net Income 68,000 -15,000 41,000 59,000
Changes in Accounts Recv'bls -114,000 0 0 0
Changes in Liabilities 98,000 0 0 0
Changes in Inventories -299,000 0 0 0
Changes in Other Oper'g Acts 0 131,000 -442,000 -110,000
Total Cash Flow f Operations 360,000 432,000 -117,000 371,000
Investing Activities:
Capital Expenditures -174,000 -150,000 -161,000 -158,000
Investments 50,000 1,000 -1,000 -79,000
Other Cash Flows fr Investing 0 1,000 2,000 23,000
Total Cash Flows fr Investing -173,000 -97,000 -160,000 -214,000
Financing Acitivies:
Dividends Paid -14,000 -15,000 -15,000 -15,000
Sale or Purchase of Stock -163,000 -89,000 -14,000 -7,000
Net Borrowings -322,000 2,000 -64,000 -1,000
Other Cash Flows fr Financing 16,000 7,000 35,000 10,000
Total Cash Flows fr Financing -441,000 -146,000 -58,000 -13,000
Effect of Exchange Rate Chg 0 0 0 -2,000
Change in Cash & Cash Equiv. -265,000 187,000 -328,000 144,000
TSN Tyson Foods Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 2.7079 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 1.9300 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 0.6236
Sales < $1 billion? 0.0310 Operating Margin < 7.5%? 1.8844
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0104 Long-Term Debt Service: 2.6785
LTD Being Reduced? 2.4000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 1.0050 Working Capital >= 1.5? 0.9933
Leverage Ratio < 20%? 0.9363 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 0.8580 Inventory Turnover > 1? 3.0000
Shares Out Decreasing? 3.0000 Market Cap.> 1.5 Billion? 0.1992
Profit Margin > 7.5%? 0.3093
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 1.1100
Enterprise Value/Revenue: 0.1800 EPS 5-yr Growth > 20%? 3.0000
Enterprise Value/EBITDA: 0.7043 EPS Growth Consistent? 1.2000
EPS Qrtly Growth > 10%? -3.0000 Collection < 45 days? 3.0000
Rev. Qtrly Growth > 15%? 1.9350 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 1.1100 Borrowing Int. Rate< 6%? 0.8533
Stock Performance Tests:
Volatility > 25%? 1.1315 % Held by Insiders < 5%? 2.4038
Beta > 1.25? 0.5680 % Held by Institut. < 50? 0.7184
50 Da MA > 200 Da MA? 0.2133 % Held by Institut. > 30? 2.3200
52-Wk Change vs. S&P 500: -0.1667 Short Ratio > 5? 0.7800
Price/Book Value < 3? 2.7000 Short % of Float > 20? 0.2200
Return on Assets > 17%? 0.4329 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.9081
Cash Flow / Assets >.10? 0.2546
TSN Tyson Foods Inc. Overall Zenith Index: 1.4734
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |

. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |


Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:

Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:

Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.

Projected Earnings |

Research Reports |
Analysts' Opinions |


Insider Activity |

Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Tyson Foods Inc.:
Symbol? TSN
Total Months Available: 48
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
19.99 16.17 20.12 15.60 20.74 15.96
RANGE = 20.74 TO 15.60 Close = 19.93
CHANNEL = 19.99 TO 16.17 Degree = 7
Volatility = 19.17% Index = 13
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |

Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
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Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | - 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | - 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| Moving Average | - 1 |
| Right Time Study | + 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 7 |
Place 1,460 shares of Tyson Foods, Inc. (TSN) on the Active List.