Tractor Supply Company (TSCO)

TMFPlatoish (39.89) Submitted: 6/10/06 6:49 AM : Start Price: $53.39 TSCO Score: -2.35

Green Acres is the place to be, farm livin' is the life for me. From it's humble beginnings as Drucker's General Store in the rural Illinois town of Hooterville, Tractor Supply has grown to become a national chain of 600 stores in 37 states with a market cap of over $2B.

Well, maybe not the Drucker's part. TSCO is my favorite retail play. I've owned it in my real portfolio for over four years and it is a multi-bagger. For the last four years they have grown revenues at a 25% CAGR and produced earnings growth at a CAGR of 36%. They are the nation's largest specialty farm and ranch retail store chain. They cater mainly to the recreational farmer and rancher, as well as local tradesmen. They locate their stores in towns outlying major metropolitan areas and in thriving rural communities.

They differentiate themselves by having well-stocked stores with a variety of good quality namebrand merchandise supplemented with their high quality private label brands. They institute a thorough employee training program and pride themselves on customer service. They sell several catagories of products, including in order of revenue contribution: equine,pet and animal products (food, cages, fencing, medicine, etc.), seasonal items, hardware and tools, lawn and garden equipment, work clothes, truck/trailer/towing accessories, and maintenance products for agricultural use.

While they have about 600 stores currently, they have built out a network of distribution centers that can service up to

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