Tyson Foods, Inc. (TSN) | Investment Case

1. Company Snapshot

1.a. Company Description

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide.It operates through four segments: Beef, Pork, Chicken, and Prepared Foods.The company processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products; and supplies poultry breeding stock; sells specialty products, such as hides and meats.

It also manufactures and markets frozen and refrigerated food products, including ready-to-eat sandwiches, flame-grilled hamburgers, Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks, and processed meats under the Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and Gallo Salame brands.The company also offers its products under Tyson and ibp brands.It sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors who serve restaurants and food service operations, such as plant and school cafeterias, convenience stores, hospitals, and other vendors, as well as through independent brokers and trading companies.

The company was founded in 1935 and is headquartered in Springdale, Arkansas.

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1.b. Last Insights on TSN

Tyson Foods' recent performance was driven by strong institutional buying, with notable increases in holdings by Compass Wealth Management LLC (260.3%), Chicago Partners Investment Group LLC (125.6%), and D.A. Davidson & CO. (292.9%). Additionally, the company's Q1 earnings, although missing estimates, were expected to exceed market returns, as indicated by its closing price of $61.12 on January 23, representing a 1.88% shift from the previous trading day. Furthermore, the company's competitive scale and processing capacity position it to capitalize on beef market normalization and herd rebuilding post-2027, supporting margin expansion in the Chicken segment.

1.c. Company Highlights

Last Price	64.65
Change Percentage	-0.47%
Open	64.64
Previous Close	64.95
Market Cap ( Millions)	23032
Volume	278771
Year High	66.41
Year Low	50.56
M A 50	60.06
M A 200	56.22

FCF Yield	4.81%
Dividend Yield	3.11%
ROE	1.10%
Debt / Equity	46.40%
Net Debt / EBIDTA	316.25%
Price To Book	1.24
Price Earnings Ratio	111.49
Price To FCF	20.8
Price To sales	0.42
EV / EBITDA	13.44

2. Tyson Foods' Q1 2026 Earnings: Strong Performance Amidst Challenges

Tyson Foods reported a robust Q1 2026 performance, with total company sales growth of 6.2% to $14.3 billion, segment operating income of $811 million, and adjusted earnings per share of $0.97, slightly below the estimated $1.01. The company's prepared foods segment saw sales increase in volume, channel mix, and pass-through pricing, with segment operating income rising to $338 million. The chicken segment delivered a strong quarter, with $459 million in segment operating income and a 10.9% margin.

Publication Date: Feb -09

                                    📋 Highlights
                                    Total Sales Growth::
                                                Sales increased to $14.3 billion, reflecting a 6.2% year-over-year growth driven by volume, mix, and pricing in key segments.
Segment Operating Income::
                                                Total segment operating income reached $811 million, with chicken ($459 million) and prepared foods ($338 million) leading performance despite operational challenges.
Beef Restructuring::
                                                Facility closures and production footprint adjustments aim to reduce costs and improve competitiveness, with expected segment operating losses of $500–$250 million in 2026.
Shareholder Returns::
                                                $224 million returned to shareholders via dividends and repurchases in Q1, supported by $700 million in free cash flow and strong liquidity of $4.5 billion.
2026 Guidance::
                                                Full-year sales growth anticipated at 2–4%, with adjusted operating income projected between $2.1–$2.3 billion and free cash flow of $1.1–$1.7 billion.

                                

Segment Performance

The beef segment announced changes to rightsize its operations, including closing a facility and scaling back another, to improve capacity utilization and competitiveness. The company is experiencing a dynamic and volatile situation in the beef segment, with four key drivers affecting results: cattle costs, cut out, drop credit, and manufacturing cost structure. Despite challenges, the team is performing well, and the company is committed to managing capacity and driving long-term value.

Operational Excellence

Tyson Foods is driving operational excellence, investing in its branded portfolio, and deploying capital strategically. According to Nielsen data, Tyson's retail branded products outperformed the broader sector, with 2.5% volume growth and 3.6% dollar growth. The company's focus on protein-centric offerings, disciplined capital allocation, and operational excellence enables it to accelerate expansion and optimize operations.

Financial Outlook

For 2026, Tyson Foods anticipates full-year sales to be up 2% to 4% year-over-year, with total company adjusted operating income expected to be between $2.1 to $2.3 billion. The company's balance sheet remains strong, with $4.5 billion in liquidity, net leverage declining to 2.0 times, and free cash flow of nearly $700 million. With a P/E Ratio of 112.57 and a Dividend Yield of 3.08%, the company's valuation metrics indicate a premium for its strong brand portfolio and disciplined capital allocation.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 0.8%. Considering the company's EV/EBITDA ratio of 13.54 and ROE of 1.1%, the stock appears to be fairly valued. However, the company's commitment to returning cash to shareholders, with $224 million returned in Q1 through dividends and share repurchases, is a positive signal. With a diversified portfolio and strategic investments, Tyson Foods is well-positioned to capture growing demand for high-quality protein.

3. NewsRoom

Tyson Foods, Inc. Announces Pricing of Senior Notes Offering

Feb -10

Source: globenewswire.com

Tyson Foods, Inc. (TSN) Shareholder/Analyst Call Prepared Remarks Transcript

Feb -05

Source: seekingalpha.com

Tyson Foods Announces Quarterly Dividend

Feb -05

Source: globenewswire.com

The U.S. Government Just Told 340 Million Americans to Eat More of What Tyson Foods Sells

Feb -03

Source: fool.com

Why Tyson Foods Looks Like a Tasty Treat for Income Investors Right Now

Feb -02

Source: marketbeat.com

Tyson Foods Inc (TSN) Q1 2026 Earnings Call Highlights: Strong Sales Growth Amid Beef Segment Challenges

Feb -02

Source: gurufocus.com

Tyson Foods, Inc. (TSN) Q1 2026 Earnings Call Transcript

Feb -02

Source: seekingalpha.com

Tyson Foods Q1 Earnings Miss Estimates, Sales Grow 5.1% Y/Y

Feb -02

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Beef

Expected Growth: 1.8%

Tyson Foods' beef segment growth of 1.8% is driven by increasing demand for protein-rich foods, strategic acquisitions, and expansion into international markets. Additionally, the company's focus on premium products, such as organic and grass-fed beef, contributes to growth. Furthermore, Tyson's efforts to improve operational efficiency and reduce costs also support the segment's growth.

Chicken

Expected Growth: 1.9%

Tyson Foods' chicken segment growth of 1.9% is driven by increasing demand for protein-rich food, rising exports to countries like China and Mexico, and strategic acquisitions. Additionally, the company's focus on value-added products, such as organic and premium chicken, contributes to growth. Furthermore, Tyson's efforts to improve operational efficiency and reduce costs also support the segment's expansion.

Prepared Foods

Expected Growth: 2.1%

Tyson Foods' Prepared Foods segment growth of 2.1% is driven by increasing demand for convenient, protein-rich meals, and strategic acquisitions expanding product offerings. Additionally, investments in e-commerce and digital marketing enhance customer engagement, while operational efficiencies and cost savings initiatives support margin expansion.

Pork

Expected Growth: 1.7%

Tyson Foods' pork segment growth of 1.7% is driven by increasing demand for protein-rich foods, strategic acquisitions, and expansion into international markets. Additionally, the company's focus on premium products, such as organic and antibiotic-free offerings, contributes to growth. Furthermore, efficient production and supply chain management enable Tyson to maintain a competitive edge in the market.

International/Other

Expected Growth: 2.2%

Tyson Foods' International/Other segment growth of 2.2% is driven by increasing demand for protein-rich foods in emerging markets, particularly in Asia and Latin America. Additionally, strategic acquisitions and partnerships have expanded the company's global footprint, while investments in e-commerce and digital platforms have enhanced customer reach and convenience.

Reconciling Items

Expected Growth: 2.0%

Tyson Foods, Inc.'s 2.0% growth is driven by increasing demand for protein-rich foods, expansion into international markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and cost savings initiatives have contributed to its growth. Furthermore, the rising trend of online food delivery and meal kits has also boosted sales.

7. Detailed Products

Chicken

Tyson Foods is one of the largest chicken producers in the world, offering a wide range of chicken products including fresh, frozen, and value-added chicken.

Beef

Tyson Foods offers a variety of beef products, including fresh, frozen, and value-added beef, as well as case-ready beef products.

Pork

Tyson Foods produces a range of pork products, including fresh, frozen, and value-added pork, as well as case-ready pork products.

Prepared Foods

Tyson Foods offers a variety of prepared foods, including frozen meals, sandwiches, and snacks.

Sausages

Tyson Foods produces a range of sausage products, including breakfast sausage, Italian sausage, and Chorizo.

Meat Snacks

Tyson Foods offers a variety of meat snacks, including jerky, sticks, and bites.

Pet Treats

Tyson Foods produces a range of pet treats, including jerky strips, biscuits, and chews.

8. Tyson Foods, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tyson Foods, Inc. faces moderate threat from substitutes due to the availability of alternative protein sources such as plant-based meat alternatives and seafood.

Bargaining Power Of Customers

Tyson Foods, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and wide distribution network make it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Tyson Foods, Inc. faces moderate bargaining power from suppliers due to the concentration of suppliers in the agricultural industry. However, the company's large scale of operations and long-term contracts with suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the meat processing industry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The meat processing industry is highly competitive, with several large players competing for market share. Tyson Foods, Inc. faces intense rivalry from competitors such as JBS, Cargill, and Sanderson Farms.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	34.39%
Debt Cost	3.95%
Equity Weight	65.61%
Equity Cost	7.58%
WACC	6.33%
Leverage	52.42%

11. Quality Control: Tyson Foods, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Cal-Maine Foods

A-Score: 7.5/10

Value: 8.5

Growth: 9.4

Quality: 7.8

Yield: 10.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

CHS

A-Score: 6.7/10

Value: 6.3

Growth: 5.2

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Bunge

A-Score: 6.3/10

Value: 8.6

Growth: 5.6

Quality: 3.9

Yield: 6.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

Ingredion

A-Score: 6.2/10

Value: 7.2

Growth: 6.6

Quality: 6.1

Yield: 6.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

Laureate Education

A-Score: 6.2/10

Value: 2.9

Growth: 5.6

Quality: 6.0

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

Tyson Foods

A-Score: 5.2/10

Value: 5.5

Growth: 2.9

Quality: 3.7

Yield: 7.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.98%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.33%

Tyson Foods, Inc. - US9024941034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TSN

1.c. Company Highlights

Lower Quality

Average Growth

Medium Volatility

Earnings Beats

Lower Growth

Less Volatile

Revenues Beats

Average Yield

Average Quality

Revenues Miss

Higher Yield

Stable Momentum

2. Tyson Foods' Q1 2026 Earnings: Strong Performance Amidst Challenges

Segment Performance

Operational Excellence

Financial Outlook

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.90%)

6. Segments

Beef

Expected Growth: 1.8%

Chicken

Expected Growth: 1.9%

Prepared Foods

Expected Growth: 2.1%

Pork

Expected Growth: 1.7%

International/Other

Expected Growth: 2.2%

Reconciling Items

Expected Growth: 2.0%

7. Detailed Products

Chicken

Beef

Pork

Prepared Foods

Sausages

Meat Snacks

Pet Treats

8. Tyson Foods, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tyson Foods, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.65$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA