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Tractor Supply (TSCO)
NASDAQ:TSCO
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Tractor Supply (TSCO) AI Stock Analysis

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TSCO

Tractor Supply

(NASDAQ:TSCO)

Rating:80Outperform
Price Target:
$70.00
▲(15.44% Upside)
Tractor Supply's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The technical analysis supports a bullish outlook, although caution is advised due to potential overvaluation and overbought signals. The company's strategic initiatives and customer engagement efforts further bolster its position, despite some challenges in discretionary categories.
Positive Factors
Customer Engagement
An uptick in Neighbor’s Club members to 41 million, contributing to 80% of sales, reflects strong customer engagement.
Earnings Performance
TSCO reported better-than-expected EPS for 2Q25, beating both GS and consensus estimates.
Sales Growth Initiatives
TSCO's Final Mile initiative is a key component to its direct sales strategy and digital growth initiative, each of which the company views as $1bn incremental sales opportunities.
Negative Factors
Gross Margin
The company expects gross margin expansion to be at the low end of the range for the second half, reflecting reduced benefits from prior cost savings and slight pressure from tariffs.
Share Buyback
Management reduced its share buyback outlook for the year, reflecting a disciplined capital allocation approach.

Tractor Supply (TSCO) vs. SPDR S&P 500 ETF (SPY)

Tractor Supply Business Overview & Revenue Model

Company DescriptionTractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers a selection of merchandise, including equine, livestock, pet, and small animal products necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products, such as heating products, lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear; and maintenance products for agricultural and rural use. It provides its products under the 4health, Producer's Pride, American Farmworks, Red Shed, Bit & Bridle, Redstone, Blue Mountain, Retriever, C.E. Schmidt, Ridgecut, Countyline, Royal Wing, Dumor, Strive, Groundwork, Traveller, Huskee, Treeline, JobSmart, TSC Tractor Supply Co, Paws & Claws, and Untamed brands. As of June 25, 2022, it operated 2,016 Tractor Supply stores in 49 states; and 178 Petsense stores in 23 states. The company operates its retail stores under the Tractor Supply Company, Del's Feed & Farm Supply, and Petsense names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. The company was founded in 1938 and is based in Brentwood, Tennessee.
How the Company Makes MoneyTractor Supply generates revenue primarily through the sale of products in its retail stores, with key revenue streams including sales of livestock feed, pet supplies, and equipment for farming and gardening. The company also benefits from a growing e-commerce presence, allowing customers to shop online for in-store pickup or home delivery. Additionally, TSCO has established partnerships with various brands and suppliers in the agricultural and pet supply sectors, enhancing its product offerings and driving sales. Seasonal promotions, loyalty programs, and a focus on customer service further contribute to customer retention and increased sales, bolstering the company's overall earnings.

Tractor Supply Key Performance Indicators (KPIs)

Any
Any
New Store Sales as Percent of Total Sales
New Store Sales as Percent of Total Sales
Indicates the contribution of newly opened stores to overall sales, highlighting growth from expansion and the effectiveness of new locations in driving revenue.
Chart InsightsTractor Supply's new store sales as a percentage of total sales have fluctuated, peaking in 2023 before declining sharply in early 2024. This decline coincides with challenges in discretionary categories and seasonal merchandise, as highlighted in the earnings call. However, the company is optimistic about its strategic initiatives, such as the Final Mile delivery network, which could bolster future sales. Despite recent setbacks, Tractor Supply's commitment to customer engagement and supply chain investments suggests potential for recovery and growth in new store sales contributions.
Data provided by:Main Street Data

Tractor Supply Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
Tractor Supply Company reported a strong quarter with record sales and positive customer engagement metrics. Despite facing challenges in discretionary categories and tariff-related cost pressures, the company's initiatives like the Final Mile delivery are showing promising results. The overall outlook remains optimistic with anticipated improvement in the second half of the year.
Q2-2025 Updates
Positive Updates
Record-Breaking Quarter
Tractor Supply Company delivered its largest sales quarter ever, reaching $4.44 billion, with a net sales growth of 4.5% and a comparable store sales increase of 1.5%. Diluted EPS was $0.81.
Customer Engagement Milestones
The company achieved all-time highs in customer metrics, including 41 million Neighbor's Club members, record customer satisfaction, and new customer growth. Neighbor's Club members accounted for over 80% of total sales.
Final Mile Initiative Success
The Final Mile delivery initiative showed promising early results, with average order sizes of nearly $400 and significant customer satisfaction. By year-end, 25% of the chain is expected to have Final Mile capabilities.
Positive Momentum in Seasonal Sales
The company saw sequential comp sales improvement across the quarter, with June being the strongest comp month. Seasonal merchandise, such as Chick Days, performed exceptionally well.
Negative Updates
Softness in Discretionary Categories
There was softness in select discretionary categories, including pet hardlines, gun safes, and air compressors. Later-cycle spring businesses like chemicals and sprayers also underperformed.
Tariff-Related Cost Pressures
The current tariff landscape is creating added cost pressure, which is expected to primarily impact the second half of the year and beyond.
Lower Share Repurchase Guidance
The company reduced its full-year share repurchase guidance to $325 million to $375 million from the original outlook of $525 million to $600 million, due to a more measured pace of repurchases.
Company Guidance
During Tractor Supply Company's second-quarter 2025 earnings call, the company reaffirmed its guidance for the fiscal year, anticipating net sales growth of 4% to 8% and comparable store sales to be flat to up 4%. The company expects an operating margin between 9.5% and 9.9%, with net income projected to range from $1.07 billion to $1.17 billion, translating to an EPS of $2 to $2.18. Tractor Supply highlighted its largest sales quarter ever, reaching $4.44 billion, with a comparable store sales increase of 1.5%. Diluted EPS for the quarter was $0.81. The company also noted that gross margin expanded by 31 basis points to 36.9%, driven by disciplined product cost management and a favorable shift from deflationary pressures experienced in previous quarters. Tractor Supply plans to open 100 new stores in 2026 and is focused on strategic investments in its Final Mile initiative, digital sales growth, and the expansion of its pet and animal Rx platform.

Tractor Supply Financial Statement Overview

Summary
Tractor Supply demonstrates robust financial health with strong revenue and cash flow growth, solid profitability margins, and effective equity utilization. However, the elevated debt-to-equity ratio could pose financial flexibility risks.
Income Statement
88
Very Positive
Tractor Supply shows strong revenue growth from $10.6 billion in 2020 to $15.1 billion in TTM 2025, indicating robust expansion. Gross profit margin is stable around 35.6%, and net profit margin is healthy at approximately 7.2% in TTM. EBIT and EBITDA margins are consistent, reflecting operational efficiency. Revenue growth is driven by strategic initiatives, positioning the company well within the specialty retail sector.
Balance Sheet
75
Positive
The company's debt-to-equity ratio is elevated at 2.23 in TTM 2025, suggesting higher leverage. However, return on equity remains strong at 43.7%, indicating efficient use of equity. Equity ratio is moderate at 23.6%, reflecting balanced asset financing. Overall, the balance sheet shows financial stability, but high leverage is a potential risk.
Cash Flow
82
Very Positive
Free cash flow grew from $510 million in 2021 to $820 million in TTM 2025, showcasing solid cash generation. Operating cash flow consistently exceeds net income, underlining strong cash earnings quality. The free cash flow to net income ratio is healthy, indicating robust cash availability for growth and debt servicing. The cash flow position supports ongoing investments and shareholder returns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.15B14.88B14.56B14.20B12.73B10.62B
Gross Profit5.39B5.40B5.23B4.97B4.48B3.76B
EBITDA1.95B1.91B1.87B1.78B1.58B1.21B
Net Income1.09B1.10B1.11B1.09B997.11M748.96M
Balance Sheet
Total Assets10.56B9.81B9.19B8.49B7.77B7.05B
Cash, Cash Equivalents and Short-Term Investments225.81M251.49M397.07M202.50M878.03M1.34B
Total Debt5.56B5.42B5.04B4.27B3.92B3.54B
Total Liabilities8.07B7.54B7.04B6.45B5.76B5.13B
Stockholders Equity2.49B2.27B2.15B2.04B2.00B1.92B
Cash Flow
Free Cash Flow820.19M636.79M580.15M583.61M510.29M1.10B
Operating Cash Flow1.61B1.42B1.33B1.36B1.14B1.39B
Investing Cash Flow-761.26M-643.92M-653.07M-1.09B-627.34M-292.21M
Financing Cash Flow-1.01B-922.50M-486.39M-938.78M-975.11M155.21M

Tractor Supply Technical Analysis

Technical Analysis Sentiment
Positive
Last Price60.64
Price Trends
50DMA
58.27
Positive
100DMA
54.39
Positive
200DMA
54.28
Positive
Market Momentum
MACD
0.90
Positive
RSI
53.47
Neutral
STOCH
23.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSCO, the sentiment is Positive. The current price of 60.64 is below the 20-day moving average (MA) of 60.73, above the 50-day MA of 58.27, and above the 200-day MA of 54.28, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 23.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSCO.

Tractor Supply Risk Analysis

Tractor Supply disclosed 35 risk factors in its most recent earnings report. Tractor Supply reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tractor Supply Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$32.60B30.2645.34%1.51%2.96%-2.02%
79
Outperform
$16.76B14.6137.37%2.20%2.70%4.58%
78
Outperform
$69.92B28.35-14.95%5.15%1.99%
72
Outperform
$16.28B45.6476.24%7.64%369.79%
70
Outperform
$15.74B18.2030.21%4.91%-3.23%-28.11%
67
Neutral
$19.65B23.4717.50%2.90%2.65%-32.91%
61
Neutral
$17.96B13.14-5.29%3.00%1.25%-13.95%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSCO
Tractor Supply
60.64
7.40
13.90%
AZO
AutoZone
4,232.96
1,140.40
36.88%
BBY
Best Buy Co
77.05
-16.96
-18.04%
DKS
Dick's Sporting Goods
222.03
18.63
9.16%
GPC
Genuine Parts Company
141.25
10.20
7.78%
CHWY
Chewy
41.16
14.97
57.16%

Tractor Supply Corporate Events

Dividends
Tractor Supply Declares Quarterly Cash Dividend
Positive
Aug 7, 2025

On August 7, 2025, Tractor Supply Company announced a quarterly cash dividend of $0.23 per share, payable on September 9, 2025, to shareholders recorded by August 25, 2025. This declaration reflects the company’s ongoing commitment to providing value to its shareholders and maintaining its strong position in the rural lifestyle retail market.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025