January 10, 2018

TSN – Market expectations are for Uniform ROA to remain near current peaks, but management has concerns about costs and growth investments


  • Tyson Foods (TSN:USA)¬†currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 17.3x Uniform P/E, implying bullish expectations for the firm. However, management appears to have concerns about their costs and growth investments
  • Specifically, management appears to have concerns about the value of their growth investments, and might lack confidence in their ability to drive expected synergies going forward. Moreover, they appear to lack confidence in their ability to meet incremental savings goals, and might have concerns about greater than expected restructuring costs going forward
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