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Tyson Foods Elects New Board of Directors

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Price movement

Tyson Foods (TSN) has a market cap of $22.4 billion. It rose 0.06% to close at $62.44 per share on December 16, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.84%, -9.2%, and 18.3%, respectively, on the same day.

TSN is trading 4.0% above its 20-day moving average, 5.1% below its 50-day moving average, and 7.9% below its 200-day moving average.

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Related ETF and peers

The iShares Morningstar Mid Core ETF (JKG) invests 1.3% of its holdings in Tyson Foods. The YTD price movement of JKG was 12.5% on December 16.

The market caps of Tyson Foods’s competitors are as follows:

  • Hormel Foods (HRL) — $18.2 billion
  • Pilgrim’s Pride (PPC) — $4.4 billion
  • Sanderson Farms (SAFM) — $2.0 billion

Latest news on TSN

Cheryl S. Miller, AutoNation’s executive vice president and chief financial officer, was elected as Tyson Foods’s board of directors effective December 14, 2016.

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Performance of Tyson Foods in fiscal 4Q16

Tyson Foods (TSN) reported fiscal 4Q16 sales of $9.2 billion, a 12.8% fall compared to its sales of $10.5 billion in fiscal 4Q15. Tyson Foods’s gross profit margin and operating margin expanded 250 basis points and 120 basis points, respectively, in fiscal 4Q16 compared to fiscal 4Q15.

The company’s net income and EPS (earnings per share) rose to $391.0 million and $1.03, respectively, in fiscal 4Q16, compared to $258.0 million and $0.63, respectively, in fiscal 4Q15. It reported adjusted EPS of $0.96 in fiscal 4Q16, a rise of 15.7% compared to fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, Tyson Foods (TSN) reported sales of $36.9 billion, a fall of 10.9% YoY (year-over-year). The company’s gross profit margin and operating margin expanded 320 basis points and 250 basis points, respectively, in fiscal 2016.

Tyson Foods’s net income and EPS rose to $1.8 billion and $4.53, respectively, in fiscal 2016, compared to $1.2 billion and $2.95, respectively, in fiscal 2015. It reported adjusted EPS of $4.39 in fiscal 2016, a rise of 39.4% YoY.

Tyson Foods’s cash and cash equivalents and inventories fell 49.3% and 5.1%, respectively, in fiscal 2016. Its current ratio rose to 1.8x, and its debt-to-equity ratio fell to 1.3x in fiscal 2016, compared to its current and debt-to-equity ratios of 1.5x and 1.4x, respectively, in fiscal 2015.

Projections

Tyson Foods (TSN) made the following projections for fiscal 2017:

  • flat sales growth
  • EPS of $4.70–$4.85
  • capital expenditure of ~$1.0 billion

In the final part of this series, we’ll discuss Fortune Brands Home & Security (FBHS).

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