In This Article:
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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Tractor Supply Company (NASDAQ:TSCO), it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Tractor Supply here.
Excellent balance sheet with solid track record
In the previous year, TSCO has ramped up its bottom line by 26%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 34%, which is what investors like to see! TSCO is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that TSCO manages its cash and cost levels well, which is a crucial insight into the health of the company. TSCO appears to have made good use of debt, producing operating cash levels of 1.58x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Tractor Supply, I’ve put together three pertinent aspects you should further research:
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Future Outlook: What are well-informed industry analysts predicting for TSCO’s future growth? Take a look at our free research report of analyst consensus for TSCO’s outlook.
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Valuation: What is TSCO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TSCO is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TSCO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.