TSN - Tyson Foods: Vulnerable To Changing Consumer Spend

2024-05-22 23:45:21 ET

Summary

• Tyson Foods has struggled to increase revenue due to unfavorable market conditions, and underperforms some peers in total return over a five-year period.
• The company is vulnerable to shifting consumer spending patterns and competition from private label brands.
• The current dividend payout ratio is high, but prospects are improving as free cash flow has grown over the last quarter.
• The chicken & prepared foods segments continue to carry the bulk of growth and offset losses within the beef segment.
• The dividend yield is currently 3.2% and TSN has increased its dividend for 13 consecutive years.

Overview

The possibility of investing into a company that I have been a consumer of for large portions of my life has always been very cool to me. Furthermore, collecting a growing dividend from a company that I, personally, consume from is an added bonus that makes the concept even more attractive to me. However, it would be highly irresponsible to invest in a company just because you are familiar with their products, so I aim to give a fair analysis here by reviewing their financials, dividend growth, valuation, and vulnerabilities....

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