TSN - Embedded Expectations Analysis - 2018 07 26
Tyson Foods (TSN:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 13.2x Uniform P/E, implying fairly bearish expectations for the firm. Moreover, management appears to lack confidence in their ability to meet outlook and sustain returns to shareholders, and might have concerns about cost and demand trendsSpecifically, they may be concerned about their ability to sustain increased revenues seen in Q2, and about rising input costs for prepared food. Furthermore, they appear to lack confidence in their diversified portfolio of protein brands, and their ability to sustain returns to shareholders through stock repurchases and dividends. Additionally, they may be exaggerating expectations for trends in the beef market, as well as their ability to attract customers with new pepperoni plants. Finally, they appear concerned about current net debt levels, net interest, and the change in EPS guidance
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.