TSN – Market expectations are for Uniform ROA to fade, and management may have concerns about growth, labor inflation, and commodity prices
- Tyson Foods (TSN) currently trades below corporate but near historical averages relative to Uniform earnings, with a 12.3x Uniform P/E (Fwd. V/E’).
At these levels, markets are pricing in expectations for Uniform ROA to fade to 3%, accompanied by 5% Uniform asset growth.
Meanwhile, analysts expect Uniform ROA to compress to 14% in 2023, accompanied by 5% Uniform asset growth.
If sustained going forward, these levels would imply a stock price closer to $149, representing significant potential equity upside for the firm.
However, the firm’s most recent earnings call suggests management may have concerns about growth, labor inflation, and commodity prices.