NYSE:TSN
TYSON FOODS, INC.
A diversified animal protein powerhouse delivering consistent revenue growth through integrated supply chains and private-label brands.
Key Metrics
Investment Thesis
Bull Case
Tyson offers an attractive value play with a solid balance sheet holding $1.23B in cash and equivalents against manageable current liabilities of $6.39B. Investors can capitalize on the company's ability to navigate inflationary pressure through its integrated cost structure and consistent revenue expansion, evidenced by a 5-year growth trajectory from $52.88B to $54.44B.
Bear Case
The sharp contraction in net income from $822M in 2024 to $507M in the latest period highlights sensitivity to margin compression and non-operating losses of $329M. High levels of goodwill at $9.47B and a retained earnings deficit of $18.65B suggest underlying legacy issues or past write-downs that could impact future valuation multiples.
About TYSON FOODS, INC.
Tyson Foods Inc. is a global leader in food production, processing, and distribution, serving restaurants, retail stores, and consumers with beef, pork, poultry, eggs, and other proteins across North America and internationally.
Analysis
Management Discussion
The company delivered robust cash flow from operations of $2.15B, reflecting strong operational leverage despite a decline in net profit to $507M compared to the prior year's $822M. Significant capital expenditures of $978M were deployed to maintain production capacity and modernize facilities, while accounts payable increased by $184M, indicating effective working capital management.
Industry Overview
The North American meat processing industry is characterized by consolidation, intense competition among major players like Tyson, Cargill, and JBS, and increasing pressure from alternative protein sources. Market dynamics are heavily influenced by agricultural cycles, consumer health consciousness, and evolving food safety regulations that dictate operational strategy.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $52.88B | $53.31B | $54.44B |
| Cost of Revenue | $50.25B | $49.68B | $50.88B |
| Gross Profit | $2.63B | $3.63B | $3.56B |
| Operating Expenses | $3.03B | $2.22B | $2.46B |
| Operating Income | $-395.0M | $1.41B | $1.10B |
| R&D | $114.0M | $106.0M | $126.0M |
| G&A | $2.25B | $2.22B | $2.12B |
| Stock-Based Comp | $61.0M | $101.0M | $100.0M |
| D&A | $1.33B | $1.39B | $1.35B |
| Depreciation | $1.10B | $1.16B | $1.09B |
| Amortization | $229.0M | $229.0M | $239.0M |
| Other OpEx | $667.0M | $-106.0M | $217.0M |
| Non-Operating Income | $-283.0M | $-317.0M | $-329.0M |
| Interest Income | $30.0M | $89.0M | $73.0M |
| Pre-Tax Income | $-678.0M | $1.09B | $769.0M |
| Income Tax | $-29.0M | $270.0M | $262.0M |
| Continuing Ops | $-649.0M | $822.0M | $507.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-649.0M | $822.0M | $507.0M |
| Minority Interest | $-1.0M | $22.0M | $33.0M |
| Net to Common | $-648.0M | $800.0M | $474.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $8.72B | $9.75B | $9.92B |
| Cash & Equivalents | $573.0M | $1.72B | $1.23B |
| Accounts Receivable | $2.48B | $2.41B | $2.52B |
| Inventory | $5.33B | $5.20B | $5.68B |
| Other Current Assets | $345.0M | $433.0M | $482.0M |
| Long-Term Assets | $27.53B | $27.35B | $26.74B |
| PP&E (Net) | $9.63B | $9.44B | $9.20B |
| Intangibles | $6.10B | $5.88B | $5.62B |
| Goodwill | $9.88B | $9.82B | $9.47B |
| Operating Leases | $544.0M | $710.0M | $887.0M |
| Other LT Assets | $795.0M | $953.0M | $992.0M |
| Total Assets | $36.25B | $37.10B | $36.66B |
| Current Liabilities | $6.50B | $4.79B | $6.39B |
| Accounts Payable | $2.59B | $2.40B | $2.60B |
| Current Leases | $153.0M | $173.0M | $201.0M |
| Other Current Liab | $3.75B | $2.21B | $3.59B |
| Long-Term Liabilities | $11.50B | $13.80B | $12.04B |
| LT Operating Leases | $376.0M | $521.0M | $664.0M |
| Other LT Liab | $11.12B | $13.28B | $11.38B |
| Total Liabilities | $18.00B | $18.59B | $18.43B |
| Shareholders' Equity | $18.25B | $18.51B | $18.23B |
| Paid-In Capital | $4.56B | $4.60B | $4.69B |
| Retained Earnings | $18.76B | $18.87B | $18.65B |
| AOCI | $-260.0M | $-184.0M | $-191.0M |
| Treasury Stock | $4.97B | $4.94B | $5.10B |
| Total L&E | $36.25B | $37.10B | $36.66B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-649.0M | $822.0M | $507.0M |
| Non-Cash Adjustments | $2.28B | $2.22B | $1.16B |
| Working Capital Changes | $123.0M | $-456.0M | $488.0M |
| Cash from Operations | $1.75B | $2.59B | $2.15B |
| Capital Expenditures | $1.94B | $1.13B | $978.0M |
| Cash from Investing | $-2.30B | $-888.0M | $-665.0M |
| Dividends Paid | $670.0M | $684.0M | $697.0M |
| Cash from Financing | $88.0M | $-581.0M | $-1.98B |
| FX Effect | $1.0M | $23.0M | $-1.0M |
| Net Change in Cash | $-458.0M | $1.14B | $-488.0M |
| Beginning Cash | $1.03B | $573.0M | $1.72B |
| Ending Cash | $573.0M | $1.72B | $1.23B |
Frequently Asked Questions
How does TYSON FOODS, INC. make money?
Revenue is driven by four primary pillars: Beef (wholesale and retail cuts), Pork (fresh and processed cuts), Poultry (whole birds, parts, and value-added products), and Eggs (farm-fresh eggs for retail and foodservice channels).
What are the main risks for TSN?
1. High exposure to volatile commodity prices for grain, livestock, and energy inputs. 2. Regulatory scrutiny regarding antibiotic use and labor practices in animal agriculture. 3. Consumer health trends shifting demand toward plant-based alternatives or leaner protein options.
What is TSN's competitive advantage?
1. Unrivaled scale providing significant cost efficiencies in feed procurement and production. 2. Deep integration from farm to fork allowing rapid response to supply chain disruptions. 3. Strong private-label presence offering stable volume growth with higher margins than consumer brands.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.