One-glance verdict
Undervalued
$105.66 our estimate vs market $56.40
Wall Street consensus: $63.00 (-40.4% lower than our fair-value estimate)
47% below our estimate, below the bear case
Fundamentals snapshot
Tyson Foods, Inc.
TSN · NYQ · Consumer Defensive · Farm Products
Current price
$56.40
52-week range
$49.96 - $69.48
Market cap
$19.84B
Balance sheet
Stretched
3.21x Stretched
Net debt $7.27B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.3% last year.
- Reward Returns 3.3% on equity, ahead of 20% of its peers.
- Risk Stock trades 39.8% above its 5-year average P/E.
- Risk Insider ownership is only 2.6% (peer median: 37.6%).
What this company does
Tyson Foods, Inc.
Tyson Foods is a major food producer behind familiar brands like Tyson chicken and Jimmy Dean sausage, making most of its money processing and selling beef, pork, and chicken to grocery stores and restaurants. Because its profits are tied to the fluctuating costs of livestock and grain, its success often depends on managing its complex supply chain (the entire process of getting food from the farm to your plate).
How the company got here
Tyson Foods started in 1935 when its founder, John W. Tyson, began delivering chickens to bigger markets in the Midwest. The business grew significantly during World War II because chicken wasn't rationed like other foods. Over the years, Tyson expanded by buying other companies, including a major beef and pork processor called IBP in 2001 and Hillshire Brands in 2014, which added well-known brands like Jimmy Dean and Ball Park to its portfolio. These key acquisitions transformed Tyson from a chicken company into one of the world's largest processors of chicken, beef, and pork.
What it actually does
Tyson Foods is a major food company that produces about one-fifth of the beef, chicken, and pork sold in the United States. You've likely seen their products in the grocery store under brand names like Tyson, Jimmy Dean, Hillshire Farm, and Ball Park. They sell everything from fresh chicken, beef, and pork to prepared foods like chicken nuggets, breakfast sausages, hot dogs, and ready-to-eat sandwiches. The company supplies these products to grocery stores, restaurant chains, schools, and even the military.
Beef
This is Tyson's largest business segment, making up about 39% of its revenue. In this part of the business, Tyson processes live cattle into various cuts of beef that you see in the grocery store, like steaks and ground beef. They also sell these products to restaurant chains and other food service companies. The profitability of this segment can be affected by the cost of cattle and the demand for beef both in the U.S. and in other countries.
Chicken
The Chicken segment is a significant part of Tyson's business, representing about a third of its revenue. This division is involved in everything from raising chickens to processing them into fresh, frozen, and value-added products. Value-added products are items that have been changed from their original state to be more convenient for the customer, like pre-cooked chicken strips or breaded nuggets. Tyson sells these chicken products to grocery stores and is a major supplier to many national restaurant chains.
Prepared Foods
The Prepared Foods segment is where Tyson makes and sells a wide variety of branded products that are ready to eat or easy to prepare. This includes popular items like Jimmy Dean breakfast sausages, Hillshire Farm lunch meats, Ball Park hot dogs, and Wright Brand bacon. This part of the business is important because branded products often have more stable demand and better pricing power (the ability to raise prices without losing customers) compared to raw commodities like fresh meat. This segment accounts for a little less than 20% of the company's total revenue.
Pork
Tyson's Pork segment is its smallest, making up just over 10% of its revenue. Similar to its beef operations, this division processes live hogs into various pork products. These products range from fresh pork cuts to items like bacon and sausage that are sold under Tyson's various brand names. The pork is sold to grocery stores, distributors, and restaurants.
What management is betting on now
Tyson's leadership is focused on growing its portfolio of branded products, like those in the Prepared Foods and value-added chicken categories. The goal is to be less dependent on the fluctuating prices of commodity meats (raw, unprocessed meat), which can be very unpredictable. They are also investing in automation and efficiency in their processing plants to manage costs better. Additionally, the company is looking to expand its sales in international markets and is committed to sustainability initiatives, such as offering chicken raised with no antibiotics ever.
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 Q4
$369.00M
FY2025 Q1
$760.00M
FY2025 Q2
$-378.00M
FY2025 Q3
$547.00M
FY2025 Q4
$248.00M
FY2026 Q1
$690.00M
FY2026 Q2
$-258.00M
FY2026 Q3
$481.00M
Revenue
$13.87B
Net income
$182.00M
Diluted EPS
0.52
Operating cash flow
$640.00M
Free cash flow
$481.00M
Fetching…
Sources
Revenue
$13.65B
Net income
$260.00M
Diluted EPS
0.73
Operating cash flow
$-113.00M
Free cash flow
$-258.00M
Fetching…
Sources
Revenue
$14.31B
Net income
$85.00M
Diluted EPS
0.24
Operating cash flow
$942.00M
Free cash flow
$690.00M
Fetching…
Sources
Revenue
$13.86B
Net income
$47.00M
Diluted EPS
0.13
Operating cash flow
$535.00M
Free cash flow
$248.00M
Fetching…
Sources
Revenue
$13.88B
Net income
$61.00M
Diluted EPS
0.17
Operating cash flow
$774.00M
Free cash flow
$547.00M
Fetching…
Sources
Revenue
$13.07B
Net income
$7.00M
Diluted EPS
0.02
Operating cash flow
$-185.00M
Free cash flow
$-378.00M
Fetching…
Sources
Revenue
$13.62B
Net income
$359.00M
Diluted EPS
1.01
Operating cash flow
$1.03B
Free cash flow
$760.00M
Fetching…
Sources
Revenue
$13.56B
Net income
$357.00M
Diluted EPS
1.00
Operating cash flow
$617.00M
Free cash flow
$369.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $105.66 vs current price $56.40
Wall Street consensus is the average analyst price target: $63.00 (-40.4% lower than our fair-value estimate).
Our most-likely fair value is $105.66 a share — about 87.3% above today's price of $56.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $7.3B. Interest coverage 3.2x.
Net debt
$7.27B
Interest coverage
3.21x
Tyson Foods, Inc.'s profit covers its interest bill about 3.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
TSN
BASELINE
Tyson Foods, Inc.
Total debt $8.01B Interest coverage 3.21x This is the baseline the peer rows are being compared against.
Total debt $2.86B Interest coverage 11.47x +257% vs TSN Carries about 3.6x more debt cushion than TSN.
Total debt $3.11B Interest coverage 10.19x +218% vs TSN Carries about 3.2x more debt cushion than TSN.
Total debt $7.76B Interest coverage 3.23x +1% vs TSN Has roughly the same debt cushion as TSN.
Total debt $1.97B Interest coverage 3.41x +6% vs TSN Has roughly the same debt cushion as TSN.
What you should know
The case for and against TSN
3 Rewards
3 Risks
Rewards
-
Revenue grew 2.3% last year.
-
Returns 3.3% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Stock trades 39.8% above its 5-year average P/E.
-
Insider ownership is only 2.6% (peer median: 37.6%).
-
Operating margin compressed from 8.3% to 2.7% over 3 years.
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)
34.81x
Forward P/E
14.48x
P/B
1.10x
P/S
0.36x
EV/EBITDA
9.82x
PEG ratio
1.04x
Profitability
How much profit each dollar creates
Gross margin
6.6%
Operating margin
2.7%
Net margin
1.0%
ROE
3.3%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.44x
Current ratio
1.43x
Quick ratio
0.48x
Total debt
$8.01B
Total cash
$740.00M
Growth
How the business has been compounding
Revenue TTM
$55.69B
Revenue 5Y CAGR
3.7%
EPS TTM
1.62
EPS 5Y CAGR
-47.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.00B
Free CF TTM
$1.18B
FCF margin
2.1%
Dividend
Shareholder payout
Yield
3.6%
Payout ratio
125.3%
Last ex-div date
2026-12-01