TSCO

Tractor Supply is the dominant rural-lifestyle retailer in the US, operating 2,602 stores across 49 states, and the financials read like a high-quality compounder. FY2025 revenue grew 4.3% to $15.5B with a 36.4% gross margin, 9.5% operating margin and a 42.5% return on equity — exceptional capital efficiency for a big-box retailer. Net income was essentially flat at $1.10B (EPS $2.06, +1.0%), continuing a remarkably consistent five-year arc ($997M to $1.10B) on revenue that has compounded ~7.9% annually per the MD&A. Operating cash flow rose 15.1% to $1.64B, and the company is reinvesting aggressively — $895M of capex (+14.1%) into new stores and a new Nampa, Idaho distribution center opening in Q4 2026.

Capital return is disciplined: $361M of buybacks (which shrank the share count 1.0% to 526M) plus $488M of dividends (+3.2%, with the quarterly payout raised to $0.24 for 2026). The balance sheet carries $1.76B of long-term debt (down 3.7%) against $2.58B of equity; the 3.24x liabilities/equity ratio looks heavy but is largely operating-lease driven (the company leases ~97% of its stores), which is normal for the format and consistent with the sky-high ROE. Cash is thin at $194M (down 22.8%), but current assets ($3.51B) comfortably cover current liabilities ($2.61B).