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 positively driven by its strong Q4 earnings report, which beat estimates with quarterly earnings of $1.15 per share. The company's diversified protein portfolio showcased strength, with pricing gains driving sales growth. The chicken segment demonstrated resilience, offsetting margin pressure in pork and beef. Operational improvements and cost controls were evident, particularly in the chicken and prepared foods segments. Additionally, the company's focus on brand innovation and operational excellence is expected to strengthen its market leadership.

1.c. Company Highlights

Last Price	56.92
Change Percentage	1.39%
Open	56.02
Previous Close	56.14
Market Cap ( Millions)	20320
Volume	2030821
Year High	64.36
Year Low	50.56
M A 50	53.71
M A 200	56.34

FCF Yield	5.79%
Dividend Yield	3.53%
ROE	2.59%
Debt / Equity	48.82%
Net Debt / EBIDTA	294.73%
Price To Book	1.1
Price Earnings Ratio	41.79
Price To FCF	17.26
Price To sales	0.37
EV / EBITDA	10.83

2. Tyson Foods' Solid Q4 2025 Earnings: A Closer Look

Tyson Foods reported a strong fourth quarter 2025, with total company sales growth of 4.8% to $13.9 billion, and adjusted operating income up 19% to $608 million. The company's adjusted earnings per share (EPS) came in at $1.15, beating analyst estimates of $0.85. For the full year, sales were $54.4 billion, with adjusted operating income up 26% to $2.3 billion. The company's financial performance was driven by higher volumes, better operational execution, and lower feed costs in the Chicken segment, as well as growth in sales and adjusted operating income in Prepared Foods.

Publication Date: Nov -13

                                    📋 Highlights
                                    Strong Financial Performance::
                                                Q4 sales grew 4.8% to $13.9B, adjusted operating income rose 19% to $608M, with full-year sales hitting $54.4B and adjusted operating income up 26% to $2.3B.
Chicken Segment Success::
                                                Delivered $457M in adjusted operating income driven by higher volumes, lower feed costs, and operational efficiency, with 3-year strategic improvements setting the stage for 2025-2026 growth.
Prepared Foods Growth::
                                                Achieved sales and adjusted operating income growth, with $135M in 2025 Q4 commodity cost pressure offset by strategic pricing and innovation, targeting 2026 volume and market share gains.
Free Cash Flow & Shareholder Returns::
                                                2025 free cash flow reached $1.2B, returning $893M to shareholders via dividends and buybacks, with 2026 guidance of $800M–$1.3B in free cash flow and $700M–$1B in CapEx.
Beef Segment Challenges::
                                                Faces $400M–$600M negative impact from tight cattle supplies in 2026, but focuses on efficiency and regional heifer retention strategies to mitigate supply volatility and maintain retail demand.

                                

Segment Performance

The Chicken segment delivered $457 million in adjusted operating income, driven by higher volumes, better operational execution, and lower feed costs. Donnie King, President and CEO, attributed the strong performance to "setting the table over the past three years" and improving live operations, lower feed costs, and better yield. Prepared Foods saw growth in sales and adjusted operating income, with significant performance improvements in production facilities.

Guidance and Outlook

For 2026, Tyson expects sales to grow 2-4%, with adjusted operating income between $2.1 billion and $2.3 billion. The company anticipates interest expense of $390 million and a tax rate of around 25%, with CapEx expected to be $700 million to $1 billion and free cash flow in the range of $800 million to $1.3 billion. Analysts estimate next year's revenue growth at 2.2%, indicating a relatively stable outlook.

Valuation Metrics

Tyson's current valuation metrics indicate a relatively high P/E Ratio of 39.69, suggesting that the market has high expectations for the company's future growth. The P/S Ratio is 0.35, and the EV/EBITDA is 10.43. The company's Dividend Yield is 3.7%, and the Free Cash Flow Yield is 6.1%, indicating a relatively attractive return for investors. The Net Debt / EBITDA ratio is 2.95, indicating a manageable debt burden.

Operational Highlights

The company's retail branded products grew 2.4% in volume, outperforming the broader sector. Tyson's investments in innovation, distribution, and marketing are driving growth, with notable performances from brands like Hillshire Farm and Jimmy Dean. The company's recent launch of high-protein chicken cuts has achieved nationwide distribution, confirming strong consumer demand for convenient protein-packed options.

3. NewsRoom

First Look: Alphabet nears $4T as Google chip talks jolt Nvidia

Nov -25

Source: gurufocus.com

Tyson Foods to close major beef plant, scale back operations as cattle supplies decline

Nov -24

Source: foxbusiness.com

Barings LLC Trims Stock Position in Tyson Foods, Inc. $TSN

Nov -23

Source: defenseworld.net

Tyson to Close One of the Biggest Beef-Processing Plants in the U.S.

Nov -21

Source: wsj.com

Tyson Foods will stop calling its beef ‘net zero' and ‘climate smart' after lawsuit from environmental group

Nov -19

Source: fastcompany.com

Tyson Foods to halt carbon emissions claims, environmental group says

Nov -17

Source: reuters.com

Tyson Foods: Recent Dividend Increase Shows Inflation Headwinds Continue To Linger (Rating Upgrade)

Nov -14

Source: seekingalpha.com

Arvest Bank Trust Division Grows Holdings in Tyson Foods, Inc. $TSN

Nov -14

Source: defenseworld.net

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: 7.9/10

Value: 8.1

Growth: 9.4

Quality: 8.1

Yield: 10.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

Laureate Education

A-Score: 6.5/10

Value: 3.9

Growth: 5.6

Quality: 7.1

Yield: 5.0

Momentum: 10.0

Volatility: 7.7

1-Year Total Return ->

Ingredion

A-Score: 6.5/10

Value: 6.8

Growth: 6.6

Quality: 5.9

Yield: 6.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

CHS

A-Score: 6.2/10

Value: 6.2

Growth: 3.7

Quality: 3.6

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

Tyson Foods

A-Score: 5.7/10

Value: 6.7

Growth: 3.7

Quality: 3.8

Yield: 7.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

Bunge

A-Score: 5.4/10

Value: 8.0

Growth: 5.6

Quality: 3.8

Yield: 6.0

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

0.45%

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' Solid Q4 2025 Earnings: A Closer Look

Segment Performance

Guidance and Outlook

Valuation Metrics

Operational Highlights

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

56.92$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA