Tyson Foods, Inc.

Tyson Foods Tyson Foods, Inc. is an American multinational corporation based in Springdale, Arkansas, that operates in the food industry. The company is the world's largest processor and marketer of chicken, beef, and pork, and annually exports the largest percentage of beef out of the United States.

How Tyson Foods makes money Tyson Foods, Inc. is a food production company. The Company produces, distributes and markets chicken, beef, pork, prepared foods and related allied products. The Company operates an integrated poultry production process. Four segments: Chicken, Beef, Pork and Prepared Foods. The Company's integrated operations consist of breeding stock, contract growers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Through Cobb-Vantress, Inc. (Cobb), the Company supplies poultry breeding stock. The Company also processes live feed cattle and hogs and fabricate dressed beef and pork carcasses into primal and sub-primal meat cuts, case ready beef and pork and fully cooked meats.

Beta and Stock Info Stock Price: 42.67 Beta: .380 (@ ½ of data .579) Overall Financials Beta and Stock Info Stock Price: 42.67 Beta: .380 (@ ½ of data .579) 52 Week Range 36.12 – 45.10 Market Cap: $17.31 B Shares Outstanding: 304 M Dividend: 0.40 Yield (%): 0.94   TSN Industry Sector P/E (TTM): 16.60 25.77 41.50 EPS (TTM): 2.57 -- ROI: 7.05 9.76 59.22 ROE: 12.87 13.06 66.05

Comparison to other companies TSN PPC HRL CAG Industry Market Cap 17.31B 8.38B 15.20B 15.54B 8.37B Employees 124,000 35,400 N/A 32,800 35.40K Qtrly Rev Growth 0.14 0.06 0.1 0.05 Revenue 37.58B 8.52B 9.32B 17.69B Gross Margin 0.07 0.17 0.21 0.22 EBITDA 2.09B 1.18B 1.04B 2.36B Operating Margin 0.04 0.12 Net Income 864.00M 687.81M 602.68M 275.80M EPS 2.57 2.65 2.44 1.5 1.85 P/E 16.60 12.21 23.71 24.39 17.86 PEG 0.64 1.24 1.99 1.7 P/S 0.41 0.98 0.87

DCF Valuation

Explanation of growth rate used 25% year over year rise in the second quarter to $0.75, despite the -32.83% in the food processing industry, Above Average market earnings per share. On the yearly basis, average annual income per share growth expected to outperform the S&P 500. Second quarter Results, average annual income per share growth is 18.33% over the past five years.

Financials and Ratios INCOME STATEMENT Q2 FY15 Q2 FY14 Net Sales ($mil) 9,979.00 9,032.00 EBITDA ($mil) 733.00 488.00 EBIT ($mil) 561.00 361.00 Net Income ($mil) 310.00 213.00 BALANCE SHEET Q2 FY15 Q2 FY14 Cash & Equiv. ($mil) 223.00 438.00 Total Assets ($mil) 23,526.00 11,886.00 Total Debt ($mil) 7,674.00 1,940.00 Equity ($mil) 9,355.00 6,436.00 DEBT Q2 FY15 Q2 FY14 Current Ratio 1.40 2.07 Debt/Capital 0.45 0.23 Interest Expense 71.00 25.00 Interest Coverage 7.90 14.44 PROFITABILITY Q2 FY15 Q2 FY14 Gross Profit Margin 11.63% 8.61% EBITDA Margin 7.34% 5.40% Operating Margin 5.62% 4.00% Sales Turnover 1.73 2.98 Return on Assets 4.31% 8.21% Return on Equity 10.86% 15.24%

Financial Analysis TYSON FOODS INC's gross profit margin for the second quarter of its fiscal year 2015 has significantly increased when compared to the same period a year ago. Sales and net income have grown at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. Stockholders' equity ("net worth") has greatly increased by 45.35% from the same quarter last year.

Investment Thesis Our market Perform rating is based on multiple factors. Tyson’s Foods will always be at the mercy of industrial cycles. Consequently, an important step is monitoring cycle indicators in anticipation of positive turns. Tyson’s foods success in the next fiscal year will come from solid first quarter momentum, resent hedging of input costs, increasing foreign demand and production capacity. Net sales this year were up 23.9% compared to the previous financial year. The current P/E ratio indicates a significant discount compared to an average of 30.08 for the Food Products industry and a discount compared to the S&P 500 average of 21.40. To use another comparison, its price-to-book ratio of 1.74 indicates a discount versus the S&P 500 average of 2.85 and a significant discount versus the industry average of 5.39. The price-to-sales ratio is well below both the S&P 500 average and the industry average, further indicating a discount. Upon assessment of these and other key valuation criteria, TYSON FOODS INC proves to trade at a discount to investment alternatives within the industry.

Recommendation We rate Tyson foods a 5. In addition to its attractive valuation and financials Tyson foods make great food, made by good people. It grew from humble beginnings into a company that operates across the world. With the acquisition of Hillshire Brands, the company is now a leading producer of not only chicken but also beef and pork products. Tyson Foods products are sold to retailers and foodservice operators through the U.S. as well as about 130 countries.