Tyson Foods (TSN) AI Stock Analysis

• Market Cap: $18.26B
• Dividend Yield: 3.79%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.14
• Revenue Growth: 1.39%
• EPS Growth: N/A
• Country: US
• Employees: 138,000
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Agricultural Farm Products
• EPS (TTM): 0.92
• Shares Outstanding: 286,225,370
• 10 Day Avg. Volume: 2,239,578
• 30 Day Avg. Volume: 2,413,553
• PEG Ratio: -1.59
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.39
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 10.32
• Enterprise Value/Ebitda: 3.61
• 1Y Price Target: $62.75
• Price Target Upside: 19.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 70 Neutral
• Price Target: $61.00 ▲(16.12%Upside)

Tyson Foods shows strong financial and operational performance, highlighted by growth in key segments and prudent financial management. Despite technical and valuation challenges, strategic investments and leadership changes position the company for future success.

Positive Factors

Earnings

Tyson Foods' earnings per share exceeded consensus expectations due to stronger profits in Pork, International, and non-operating Other Income.

Market Dynamics

Improving spot margins and supply/demand dynamics suggest potential for Tyson Foods to exceed the high end of its outlook for the Chicken segment.

Operational Strategy

Tyson Foods announced plans to sell multiple cold storage warehouses to streamline operations and generate approximately $200 million in annual savings.

Negative Factors

Beef Segment Performance

Beef continues to be a drag on performance, impacting the overall stock sentiment negatively.

Guidance and Forecasts

The implied outlook for the second half of the year suggests lower margins for the Chicken segment, feeding the narrative that 'peak chicken' has been reached.

Interest Rates Impact

High interest rates may be deterring farmers from starting to rebuild their herds, despite low feed prices.

Tyson Foods Business Overview & Revenue Model

Company Description

Tyson Foods, Inc. is one of the world's largest food companies and a recognized leader in protein. Headquartered in Springdale, Arkansas, the company operates in various sectors including chicken, beef, pork, and prepared foods. With a diverse portfolio of products, Tyson Foods offers fresh, frozen, and value-added protein products to customers across retail and foodservice channels. The company is committed to innovation and sustainability, striving to improve its supply chain and product offerings continuously.

How the Company Makes Money

Tyson Foods makes money primarily through the sale of its protein products, which include fresh, frozen, and value-added chicken, beef, and pork. The company generates revenue by supplying these products to a wide range of customers, including retail grocery stores, foodservice distributors, restaurants, and other food manufacturing companies. Key revenue streams include the sale of branded and unbranded products, with significant contributions from its Tyson, Jimmy Dean, Hillshire Farm, and Ball Park brands. Additionally, the company's prepared foods segment, which offers convenience foods such as ready-to-eat meals, contributes to its revenue. Tyson Foods also benefits from strategic partnerships and acquisitions that expand its market reach and product offerings, as well as from its focus on operational efficiency and cost management to enhance profitability.

Tyson Foods Financial Statement Overview

Summary

Tyson Foods demonstrates stable revenue growth and improved profitability metrics. A solid balance sheet and robust cash flow generation underscore efficient operations. However, profit margins remain relatively low, indicating potential for further enhancement.

Income Statement

Tyson Foods has demonstrated a solid revenue growth trajectory with a 1.27% increase in revenue from 2024 to 2025 TTM, indicating strong demand for its products. The Gross Profit Margin remained stable at around 6.8%, while the Net Profit Margin improved to 1.7%, reflecting better cost management and efficiency compared to previous years. EBIT Margin rose to 2.9%, and EBITDA Margin was robust at 5.1%, showing improved operational performance. However, the profit margins are relatively low, suggesting room for improvement in profitability.

Balance Sheet

The company maintains a stable financial position with a Debt-to-Equity Ratio of approximately 0.49, indicative of balanced leverage. The Return on Equity (ROE) has increased to 4.97% in the TTM period, signaling improved profitability for shareholders. The Equity Ratio stands at 50.7%, showing a healthy degree of asset financing through equity. While the balance sheet is solid, the moderate leverage and fluctuating equity levels could pose risks during adverse market conditions.

Cash Flow

Tyson Foods achieved a positive Free Cash Flow Growth Rate of -11.95% from 2024 to 2025 TTM, highlighting efficient capital expenditure management. The Operating Cash Flow to Net Income Ratio is 2.47, indicating strong cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.40, suggesting effective conversion of earnings into cash. Despite a slight decrease in free cash flow, cash flow metrics reflect a sound cash generation capability, though reliance on cash flow management remains crucial.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.05B	53.31B	52.88B	53.28B	47.05B	43.19B
Gross Profit	2.57B	3.63B	2.63B	6.67B	6.53B	5.38B
EBITDA	1.79B	2.97B	1.02B	5.72B	5.68B	4.34B
Net Income	557.00M	800.00M	-648.00M	3.24B	3.05B	2.06B
Balance Sheet
Total Assets	36.28B	37.10B	36.25B	36.82B	36.31B	34.46B
Cash, Cash Equivalents and Short-Term Investments	992.00M	1.72B	573.00M	1.03B	2.51B	1.42B
Total Debt	9.07B	9.79B	9.51B	8.32B	9.35B	11.34B
Total Liabilities	17.75B	18.59B	18.00B	17.01B	18.45B	19.07B
Stockholders Equity	18.40B	18.39B	18.13B	19.70B	17.72B	15.25B
Cash Flow
Free Cash Flow	915.00M	1.46B	-187.00M	800.00M	2.63B	2.67B
Operating Cash Flow	1.64B	2.59B	1.75B	2.69B	3.84B	3.87B
Investing Cash Flow	-647.00M	-888.00M	-2.30B	-1.94B	58.00M	-1.42B
Financing Cash Flow	-1.30B	-581.00M	88.00M	-2.32B	-2.73B	-1.47B

Tyson Foods Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSN, the sentiment is Negative. The current price of 52.53 is below the 20-day moving average (MA) of 53.92, below the 50-day MA of 54.86, and below the 200-day MA of 57.67, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 37.12 is Neutral, neither overbought nor oversold. The STOCH value of 11.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSN.

Tyson Foods Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CALM	84 Outperform	$5.39B	4.45	55.96%	6.24%	60.00%	259.01%
FDP	76 Outperform	$1.80B	12.04	7.49%	2.93%	1.41%	―
BG	73 Outperform	$15.96B	7.97	12.59%	3.51%	-8.87%	―
SFD	73 Outperform	$9.48B	―		2.07%	―	―
TSN	70 Neutral	$18.26B	19.92	5.01%	3.79%	1.39%	―
ADM	66 Neutral	$26.03B	19.31	6.03%	3.75%	-8.59%	-50.72%
Sector *	66 Neutral	£8.44B	8.84	5.42%	3.61%	0.64%	12.86%

Tyson Foods Corporate Events

Tyson Foods Expands Board with Fourth Generation Leadership

On May 8, 2025, Tyson Foods announced the appointment of Olivia Tyson and John R. Tyson to its Board of Directors, expanding the board from thirteen to fifteen members. Olivia, who has been leading the Tyson Family Foundation, will serve on the Compensation and Leadership Development and Technology Committees, while John R., with extensive executive experience at Tyson Foods, will join the Strategy and Acquisitions and Technology Committees. This appointment marks the continuation of family leadership into the fourth generation, reinforcing the company’s commitment to its foundational values and long-term strategic vision.