Tractor Supply TSCO
Tractor Supply Company is a specialty retailer of home, agriculture, and pet care products, with a business model focused on physical stores and online sales in rural and suburban areas of the United States. Tractor Supply shows acceptable financial health (ND/EBITDA 3.27) and exceptional return on equity (ROE 39.51%), but its growth has stalled (earnings -15%) and free cash flow conversion is poor (5.34), which weighs on its quality and valuation. Momentum is very negative (-37% over 12 months), reflecting a weak discretionary consumer environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Tractor Supply Company is a specialty retailer of home, agriculture, and pet care products, with a business model focused on physical stores and online sales in rural and suburban areas of the United States. Tractor Supply shows acceptable financial health (ND/EBITDA 3.27) and exceptional return on equity (ROE 39.51%), but its growth has stalled (earnings -15%) and free cash flow conversion is poor (5.34), which weighs on its quality and valuation. Momentum is very negative (-37% over 12 months), reflecting a weak discretionary consumer environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.0 |
| Quality / Moat | 6.1 |
| Valuation | 5.7 |
| Growth | 2.8 |
| Dividend | 7.5 |
| Momentum | 0.8 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.4/10
Context and risks
TSCO's business is domestic and has no direct exposure to interest rates, commodities, or technology. However, the weakness of the DIY consumer, reflected in the 37% drop over 12 months and negative earnings growth of -15%, suggests a weak discretionary consumer environment that could worsen with high rates.
News considered in the analysis
- How Investors Are Reacting To Tractor Supply (TSCO) Opening Its First AI‑Enabled Automated Distribution Hub — La apertura de un centro de distribución automatizado con IA es un paso de eficiencia logística que puede mejorar márgenes a largo plazo, aunque el impacto inmediato es limitado.
- 3 Reasons TSCO is Risky and 1 Stock to Buy Instead — Artículo de opinión genérico sin información nueva o cuantificable.
- Tractor Supply inaugurates $200M distribution facility in Idaho — Inversión de 200 millones de dólares en capacidad logística que refuerza la red de distribución, un factor positivo moderado para la eficiencia operativa futura.
- How Much Further Could Lowe's Stock Fall With Its DIY Shoppers Holding Back? — Noticia sobre un competidor (Lowe's) sin impacto directo en TSCO.
- Is Lowe's Cheap Because Nobody Noticed Its Growth? — Análisis de un competidor sin relevancia directa para TSCO.
Verdict: Hold, but with caution: strong profitability and dividend do not compensate for the lack of growth and weak cash generation in a weak consumer environment.
Main risk: The main risk is the structural weakness of the DIY consumer in the US, reflected in the 37% drop over 12 months and negative earnings growth, which could persist if interest rates remain high.
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