Is the business good?
How good a business is TSCO?
Tractor Supply earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
23%
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 8.5%
Operating margin · Specialty Retail median 8.4% · 12 months to Q2 2026
- Cash conversion
- 0.16×
Cash conversion · 0.75× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 9.4% |
| FY2021 | 10% |
| FY2022 | 10% |
| FY2023 | 10% |
| FY2024 | 9.9% |
| FY2025 | 9.4% |
Details›
- Gross margin12 months to Q2 2026
- 36%
- Operating margin12 months to Q2 2026
- 8.5%
- Net margin12 months to Q2 2026
- 12%
- Free cash flow margin
- 1.9%
- Revenue, trailing twelve months
- $15.8B
- Free cash flow, trailing twelve months
- $307M
- Net income, trailing twelve months
- $1.88B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Retail
Ranks #13 of 18 by Smart Score