Given that retail has been slacking, Tractor Supply Company is in a place where they sell more than just typical retail items. Yes the company is still in the retail sector, but they gear towards the working man or woman by selling the necessary equipment. If clothes sales decrease across the retail sector, they won’t be affected as severely because they are selling a more specific type of clothing needed for farming and other laborious tasks.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Tractor Supply income statement, its balance sheet, and the statement of cash flows. Potential Tractor Supply investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Tractor Supply investors may use each financial statement separately, they are all related. The changes in Tractor Supply's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tractor Supply's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Tractor Supply
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Tractor Supply performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Tractor Supply shares is the value that is considered the true value of the share. If
the intrinsic value of Tractor is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Tractor Supply. Please read more on our
fundamental analysis page.
How effective is Tractor Supply in utilizing its assets?
Tractor Supply reports assets on its Balance Sheet. It represents the amount of Tractor resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Tractor Supply aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Other Specialty Retail space. To get a better handle on how balance sheet or income statements item affect Tractor volatility, please check the breakdown of all its
fundamentals.
Are Tractor Supply Earnings Expected to grow?
The
future earnings power of Tractor Supply involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Tractor Supply factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Tractor Supply
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Tractor
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Tractor Supply earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Tractor Supply dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Tractor one year expected dividend income is about USD2.66 per share.
As of the 20th of April 2024,
Dividends Paid is likely to grow to about (427.1
M). In addition to that,
Dividend Yield is likely to drop to 0.02.
Investing in dividend-paying stocks, such as Tractor Supply is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Tractor Supply must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Tractor Supply. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Tractor Supply Gross Profit
Tractor Supply Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Tractor Supply previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Tractor Supply Gross Profit growth over the last 10 years. Please check Tractor Supply's
gross profit and other
fundamental indicators for more details.
Is Tractor Supply valued appropriately by the market?
Taking a look at the stock using the monthly time frame, you can see that the stock has certainly come off its highs and is currently falling hard. It is nearing a potential support zone that may allow the bulls to jump in, but if there are fundamental issues with the company, the bulls may step aside and let the bears keep going. This is when you have to take a look at the company as whole and see if there is value here or a stock that is destined to fall due to lack of fundamental health.
Of course the company is not immune to short comings of the retail sector and this needs to be noted in your research. There are some risks that as an investor, you should keep in the back of your mind. First, the company sells to a very specific type of shopper. If you are looking for clothing or small items, this store will not do. Appealing to the lawn keepers and farmers of the world, the items within the store are geared as such. Secondly, the company has to be located in areas where these items are needed. Having one in the inner city of Chicago makes no sense, and this limits their footprint. Lastly, since they are so specific, slow downs in the farming industry, plumbing industry, or any other industry could lead to a slow down in sales, which is an indirect affect from industry specific slow downs.
Be sure to complete your homework, given the state of the stock price right now. It could either mean value is here or gloom and doom. Take your time and take in all the important and critical details, giving you the most well rounded opinion. If you get stuck, reach out to an investing professional and they can help to point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Tractor Supply. Please refer to our
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