Price movement of Tyson Foods
Tyson Foods (TSN) has a market cap of $22.5 billion. It fell by 1.1% to close at $59.93 per share on June 13, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.6%, -12.5%, and 12.9%, respectively, on the same day. This means that TSN is trading 6.3% below its 20-day moving average, 8.3% below its 50-day moving average, and 8.6% above its 200-day moving average.
Related ETF and peers
The iShares Morningstar Mid-Cap Value (JKI) invests 1.2% of its holdings in Tyson Foods. JKI selects from the 70%–90% range of the US market capitalization, sorting value stocks based on ten factors. The YTD price movement of JKI was 6.3% on June 13, 2016.
The market caps of Tyson Foods’ competitors are as follows:
Tyson Foods appoints Tom Hayes president
Tom Hayes has been appointed Tyson Foods’ president. Earlier, Hayes was working as the company’s chief commercial officer and president of food service. He also served as chief supply chain officer for Hillshire Brands.
Donnie Smith will continue as Tyson’s chief executive officer. Hayes will report directly to Smith.
Performance of Tyson Foods in fiscal 2Q16
Tyson Foods (TSN) reported fiscal 2Q16 sales of ~$9.2 billion, a decline of 8.1% compared to sales of ~$10.0 billion in fiscal 2Q15. Sales of the Chicken, Beef, Pork, and Prepared Foods segments fell by 3.3%, 11.9%, 1.2%, and 3.6%, respectively, in fiscal 2Q16 compared to fiscal 2Q15.
The company’s cost of sales as a percentage of sales fell by 3.3%, and its operating income rose by 28.7% in fiscal 2Q16 compared to fiscal 2Q15.
Its net income and EPS (earnings per share) rose to $432.0 million and $1.10, respectively, in fiscal 2Q16, compared to $310.0 million and $0.75, respectively, in fiscal 2Q15.
Tyson Foods’ cash and cash equivalents fell by 63.1%, and its inventories rose by 4.0% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio rose to 1.9x, and its debt-to-equity ratio fell to 1.3x in fiscal 2Q16. This compares to a current ratio and debt-to-equity ratio of 1.5x and 1.4x, respectively, in fiscal 4Q15.
Tyson Foods declared its quarterly dividend of $0.15 per share on its Class A common stock and ~$0.14 per share on its Class B common stock. The dividends will be paid on September 15, 2016, to shareholders of record at the close of business on September 1, 2016.
Tyson Foods (TSN) has made the following projections for fiscal 2016:
- sales of ~$37 billion, including a decline in sales projection due to a fall in beef, pork, and chicken prices
- capital expenditures of ~$850 million
- net interest expense of ~$245 million
- expected Chicken segment operating margin of more than 12%
- expected Beef segment operating margin of 1.5%–3.0%
- expected Pork segment operating margin of ~10%
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