Tyson Foods Stock Fair Value – Tyson Foods Offers 4% Yield and Potential for 14%+ Annual Returns
December 5, 2023
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As a result, its stock offers a 4% yield that could potentially generate annual returns of up to 14% or higher. Investing in Tyson Foods ($NYSE:TSN) involves purchasing shares in the company, which fluctuate in line with the stock market. While there is no guarantee of success, the company does have a solid track record of delivering high returns for investors. Its wide range of products, including chicken, beef, pork, fish, and plant-based proteins, ensure that the company will remain competitive in the food industry.
Additionally, the company has adopted a number of initiatives to ensure its sustainability, including reducing greenhouse gas emissions and water usage. For those looking to invest in a reliable stock that offers a consistent yield and potential for higher returns, Tyson Foods is an attractive option. Its long-term track record of success and commitment to sustainability make it a great choice for both short-term and long-term investments.
Analysis – Tyson Foods Stock Fair Value
At GoodWhale, we recently conducted an analysis of the wellbeing of TYSON FOODS. After careful consideration of the company’s financials, we have determined that the intrinsic value of a TYSON FOODS share is around $70.3 using our proprietary Valuation Line. This value is significantly higher than the current market price of $49.8, which suggests that the stock is currently undervalued by 29.2%. We believe this discrepancy between the intrinsic value and the market price presents a potential opportunity for investors to capitalize on the TYSON FOODS stock at an advantageous price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tyson Foods. More…
| Total Revenues | Net Income | Net Margin |
| 52.88k | -648 | 0.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tyson Foods. More…
| Operations | Investing | Financing |
| 1.75k | -2.3k | 88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tyson Foods. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 36.25k | 18k | 51.04 |
Key Ratios Snapshot
Some of the financial key ratios for Tyson Foods are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | -50.1% | -0.6% |
| FCF Margin | ROE | ROA |
| -0.4% | -1.1% | -0.6% |
Peers
The competition in the packaged food industry is fierce, with Tyson Foods Inc, General Mills Inc, Hormel Foods Corp, and Kellogg Co all vying for a share of the market. Each company has its own strengths and weaknesses, and it is up to the consumer to decide which brand they want to purchase.
– General Mills Inc ($NYSE:GIS)
General Mills is an American multinational manufacturer and marketer of branded consumer foods sold through retail stores. It is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known North American brands, such as Gold Medal flour, Annie’s Homegrown, Betty Crocker, Yoplait, Colombo, Totino’s, Pillsbury, Old El Paso, Häagen-Dazs, Cheerios, Trix, Cocoa Puffs, and Lucky Charms.
– Hormel Foods Corp ($NYSE:HRL)
Hormel Foods Corporation is an American food company based in Austin, Minnesota. The company was founded as George A. Hormel & Company in 1891 by George A. Hormel. The company is listed on the New York Stock Exchange and is a member of the S&P 500 index. The company operates in more than 40 countries and markets to more than 80 countries.
– Kellogg Co ($NYSE:K)
Kellogg Co is a food manufacturing company that produces cereal, snacks, and other packaged foods. The company has a market cap of 25.03B as of 2022 and a Return on Equity of 33.71%. Kellogg Co’s products are sold in more than 180 countries and its brands include Kellogg’s, Keebler, Pop-Tarts, and Eggo.
Summary
Tyson Foods Inc. is an American multinational corporation based in Springdale, Arkansas. The company specializes in processed foods and is the world’s largest processor and marketer of chicken, beef, pork, and processed foods. With its cost cutting strategies, Tyson Foods has a potential to generate 14% returns annually.
The stock price for the company moved up the same day, likely due to investor’s confidence in the company’s current and future prospects. Investors are advised to look analytically at the financials and prospects of the company before investing in Tyson Foods.
