Tractor Supply Company (TSCO) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Tractor Supply Company

Updated on October 23, 2026 · accounts published on October 22, 2026

A consistently profitable business whose earnings growth has stalled

Tractor Supply trades at a P/E of 19.7 over the last 12 months, level with its sector median, after the stock fell 30% in a year.

• Is Tractor Supply expensive or cheap? Its 12-month P/E of 19.7 matches the sector median exactly, while EV/sales of 2.1× sits above its ten-year average of 1.8×.
• How is the business doing? Revenue grew 4.3% over the last 12 months but EPS rose only 1%, with ROIC of 11.5% against a sector median of 9.1%.
• How strong is the balance sheet, and can it weather a recession? Net debt is 2.9× EBITDA in fiscal 2025, just under the 3.0× ceiling for cyclicals, and the dividend yields 2.6%.
• What to expect from the next earnings? Analysts expect EPS of $0.41 for the quarter reported on February 4, 2027; the 2026 consensus of $1.94 held steady over 30 days.

Is Tractor Supply expensive or cheap?

Over the last 12 months Tractor Supply trades at a P/E of 19.7, exactly the median of 212 companies in its sector. The 36% fall in the share price over the past year has brought it level with the sector rather than below it. The shares sit 34% below their 52-week high of $56.18. Sales give a less generous picture. EV/sales of 2.1× in fiscal 2025 is above its ten-year average of 1.8× and past the 110% line that marks a cyclical as expensive. Peter Lynch warned that cyclicals look cheap when they are expensive, so the sales multiple matters here. The free cash flow yield is 4.8% over the last 12 months.

How is the business doing?

Tractor Supply grew revenue 4.3% over the last 12 months, yet EPS rose just 1.0%, so sales growth is barely reaching the bottom line. Profitability is still solid. ROIC of 11.5% is 2.5 points above the sector median of 9.1%, and ROIC stayed above 10% in each of the last ten fiscal years (2016-2025). The current figure is, however, well below the 15.4% average for 2021-2025, which shows returns coming down from recent levels. Operating margin stands at 8.9% and net margin at 6.4%. The ROE of 39% looks spectacular, but heavy use of debt lifts it.

How strong is the balance sheet, and can it weather a recession?

In consumer cyclicals, sales can drop sharply in a downturn. The key test is whether debt and short-term bills stay covered when earnings shrink, which is why this sector looks at leverage, liquidity and distress scores before anything else. Tractor Supply passes, narrowly. Net debt of 2.9× EBITDA in fiscal 2025 is just below the healthy limit of 3.0×. The current ratio of 1.38 over the last 12 months falls short of the 1.5 the sector prefers, and debt to equity of 2.53 confirms a leveraged structure. Against that, the Altman Z of 4.9 sits well inside the safe zone above 2.99, while the Piotroski score is a middling 5 of 9. The dividend yields 2.6%.

What to expect from the next earnings?

On October 22, 2026, Tractor Supply reported EPS of $0.43 against $0.41 expected, a 5.3% beat. That result stands out against a mixed record: the company has beaten EPS estimates in only 3 of the last 8 quarters. Among 8 analysts, the fiscal 2026 EPS consensus has held at $1.94 over the last 30 days, and revenue estimates have barely moved, so expectations remain where they were. For the next quarter, due on February 4, 2027, analysts expect EPS of $0.41. Opinion is split down the middle: of 50 analysts, 24 recommend buying, 25 holding and 1 selling.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.