1. Tyson Foods, Inc.

2. 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.

3. 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.

4. 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

5. 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

6. DCF Valuation

7. Explanation of growth rate used
25% year over year rise in the second quarter to $0.75, despite the % 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.

8. Financials and Ratios INCOME STATEMENT
Q2 FY15 Q2 FY14
Net Sales ($mil) 9, ,032.00
EBITDA ($mil)
EBIT ($mil)
Net Income ($mil)
BALANCE SHEET
Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)
Total Assets ($mil) 23, ,886.00
Total Debt ($mil) 7, ,940.00
Equity ($mil) 9, ,436.00
DEBT
Q2 FY15 Q2 FY14
Current Ratio
Debt/Capital
Interest Expense
Interest Coverage
PROFITABILITY
Q2 FY15 Q2 FY14
Gross Profit Margin % %
EBITDA Margin % %
Operating Margin % %
Sales Turnover
Return on Assets % %
Return on Equity % %

9. 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.

10. 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 for the Food Products industry and a discount compared to the S&P 500 average of 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 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.

11. 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.