Report
Rebecca Scheuneman
EUR 100.00 For Business Accounts Only

Even Though It Is Beefing Up Its Prepared Food Base, We Don’t Believe Tyson Has Carved Out a Moat

We do not plan a large change for our $67 per share valuation for no-moat Tyson after it posted fourth-quarter results. Near-term challenges persist in its chicken and pork units, partly offset by the prepared foods and beef segments. As we believe factors that are weighing on Tyson and the sector are cyclical, our long-term average targets (3% sales growth, 8% adjusted operating margin through fiscal 2027) should not change significantly.
Tyson saw $40.1 billion in fiscal 2018 sales against an ...
Underlying
Tyson Foods Inc. Class A

Tyson Foods is a food company. The company's operations consist of breeding stock, contract farmers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through its wholly-owned subsidiary, Cobb-Vantress, Inc., the company is engaged as poultry breeding stock supplier. The company also processes live fed cattle and hogs and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, case-ready beef and pork and fully-cooked meats. The company produces a range of fresh, frozen and refrigerated food products. The company operates in Beef, Pork, Chicken and Prepared Foods segments.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Rebecca Scheuneman

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