One-glance verdict
Overvalued
$20.92 our estimate vs market $33.62
Wall Street consensus: $35.63 (70.3% higher than our fair-value estimate)
61% above our estimate, beyond the bull case
Fundamentals snapshot
Tractor Supply Company
TSCO · NMS · Consumer Cyclical · Specialty Retail
Current price
$33.62
52-week range
$28.36 - $60.86
Market cap
$17.52B
Balance sheet
Distressed
21.22x Strong cushion
Net debt $6.31B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.5% last year.
- Reward Returns 39.5% on equity, ahead of 50% of its peers.
- Risk Net debt grew 41.3% over 3 years.
- Risk Insider ownership is only 0.3% (peer median: 0.5%).
What this company does
Tractor Supply Company
Tractor Supply is a retail store chain for people who enjoy a rural lifestyle, such as hobby farmers, ranchers, and homeowners with land. It makes money by being a one-stop shop for all their specific needs, selling everything from chicken feed and pet supplies to garden equipment and workwear. This focus on a loyal customer base with recurring needs for essential items is the core of its business.
How the company got here
Tractor Supply Company started in 1938 as a mail-order business for tractor parts, founded by Charles E. Schmidt in Chicago. The first retail store opened a year later in Minot, North Dakota. Over the years, as the number of full-time farmers declined, the company shifted its focus to serve the growing number of part-time and recreational farmers and those with a rural lifestyle. After becoming a publicly traded company and going through a few ownership changes, a key turning point was a management-led buyout in 1982 that helped the company return to its core mission. This renewed focus on its niche market has led to significant growth, and it is now the largest rural lifestyle retailer in the U.S.
What it actually does
Tractor Supply is a retail store for people who live a rural lifestyle, often called the "Life Out Here" lifestyle. Think of it as a one-stop shop for recreational farmers, ranchers, and anyone who enjoys country living. You can find a wide variety of products necessary for maintaining homes, land, pets, and animals. This includes everything from livestock feed and pet supplies to lawn and garden equipment, tools, work clothing, and even chicken coops.
Livestock and Pet
This is the largest part of Tractor Supply's business, making up nearly half of its sales. It includes all the essentials for taking care of animals, from large livestock like horses and cattle to beloved family pets. Customers buy items like feed, treats, bedding, grooming supplies, and health products for a wide range of animals. This category is a key driver for the company because these are consumable goods (products that get used up and need to be repurchased), which encourages repeat customer visits.
Hardware, Tools & Truck
This segment, which accounts for a significant portion of sales, caters to the do-it-yourself needs of rural homeowners and tradespeople. It includes a wide array of products like hand and power tools, generators, welding supplies, and accessories for trucks and trailers. Whether a customer needs to fix a fence, maintain equipment, or haul supplies, this department provides the necessary hardware and tools. This part of the business serves both everyday maintenance needs and larger projects on a farm or property.
Seasonal, Gift & Décor
This category represents another major slice of the business and includes products that change with the seasons. Here, customers can find everything for their lawn and garden, such as mowers, seeds, and soil, as well as outdoor power equipment. It also includes items for outdoor recreation, gifts, and home décor with a rustic feel. This segment is important for attracting customers for seasonal projects and holiday shopping.
Clothing & Footwear
A smaller but still important part of the business, this section offers durable workwear and footwear for men, women, and children. You'll find practical and rugged clothing from well-known brands designed for an active, outdoor lifestyle. This includes items like boots, jackets, gloves, and jeans that are built to last.
Agriculture
This is the most specialized and smallest segment of the company's sales. It provides products specifically for farming and ranching operations. This includes items like fencing, sprayers, and other equipment essential for managing larger plots of land and agricultural activities.
What management is betting on now
The company's current strategy, called "Life Out Here 2030," focuses on several key areas for growth. Management is betting on continued expansion by opening new stores, with a long-term goal of having 3,200 locations across the country. They are also focused on tailoring the products in each store to the specific needs of the local community, a strategy known as localization. Another key initiative is growing their direct sales to larger farms and small businesses, expanding beyond their traditional individual customer base.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-101.93M
FY2024 Q4
$271.20M
FY2025 Q1
$75.50M
FY2025 Q2
$575.44M
FY2025 Q3
$30.28M
FY2025 Q4
$59.28M
FY2026 Q1
$-111.49M
FY2026 Q2
$328.91M
Revenue
$4.54B
Net income
$360.71M
Diluted EPS
0.69
Operating cash flow
$562.02M
Free cash flow
$328.91M
Fetching…
Sources
Revenue
$3.59B
Net income
$164.52M
Diluted EPS
0.31
Operating cash flow
$91.12M
Free cash flow
$-111.49M
Fetching…
Sources
Revenue
$3.90B
Net income
$1.10B
Diluted EPS
0.42
Operating cash flow
$324.83M
Free cash flow
$59.28M
Fetching…
Sources
Revenue
$3.72B
Net income
$259.27M
Diluted EPS
0.49
Operating cash flow
$307.85M
Free cash flow
$30.28M
Fetching…
Sources
Revenue
$4.44B
Net income
$430.04M
Diluted EPS
0.81
Operating cash flow
$785.80M
Free cash flow
$575.44M
Fetching…
Sources
Revenue
$3.47B
Net income
$179.37M
Diluted EPS
0.34
Operating cash flow
$216.78M
Free cash flow
$75.50M
Fetching…
Sources
Revenue
$3.77B
Net income
$236.41M
Diluted EPS
-5.96
Operating cash flow
$517.23M
Free cash flow
$271.20M
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Sources
Revenue
$3.47B
Net income
$241.47M
Diluted EPS
2.24
Operating cash flow
$86.27M
Free cash flow
$-101.93M
Fetching…
Sources
Is it cheap or expensive?
Fair value $20.92 vs current price $33.62
Wall Street consensus is the average analyst price target: $35.63 (70.3% higher than our fair-value estimate).
Our most-likely fair value is $20.92 a share — about 37.8% below today's price of $33.62, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $6.3B. Interest coverage 21.2x.
Net debt
$6.31B
Interest coverage
21.22x
Tractor Supply Company's profit covers its interest bill about 21.2 times over. which is stronger than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
TSCO
BASELINE
Tractor Supply Company
Total debt $6.54B Interest coverage 21.22x This is the baseline the peer rows are being compared against.
Total debt $42.03B Interest coverage 6.65x -69% vs TSCO Carries about 3.2x less debt cushion than TSCO.
Total debt $9.59B Interest coverage 14.72x -31% vs TSCO Carries about 1.4x less debt cushion than TSCO.
Total debt $7.96B Interest coverage 20.68x -3% vs TSCO Has roughly the same debt cushion as TSCO.
Total debt $2.52B Interest coverage 866.71x +3,984% vs TSCO Carries about 40.8x more debt cushion than TSCO.
Total debt $2.01B Interest coverage 23.97x +13% vs TSCO Has roughly the same debt cushion as TSCO.
What you should know
The case for and against TSCO
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.5% last year.
-
Returns 39.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 41.3% over 3 years.
-
Insider ownership is only 0.3% (peer median: 0.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.51x
Forward P/E
16.39x
P/B
6.69x
P/S
1.11x
EV/EBITDA
12.44x
PEG ratio
1.65x
Profitability
How much profit each dollar creates
Gross margin
36.5%
Operating margin
12.1%
Net margin
6.4%
ROE
39.5%
ROA
7.8%
Health
Liquidity and balance-sheet strength
Debt / equity
2.49x
Current ratio
1.33x
Quick ratio
0.14x
Total debt
$6.54B
Total cash
$231.59M
Growth
How the business has been compounding
Revenue TTM
$15.75B
Revenue 5Y CAGR
5.1%
EPS TTM
1.92
EPS 5Y CAGR
2.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.29B
Free CF TTM
$740.49M
FCF margin
4.7%
Dividend
Shareholder payout
Yield
2.8%
Payout ratio
49.0%
Last ex-div date
2026-08-24