TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.1 EUR
+0.05 (+0.99%)
We assign a fundamental rating of 5 out of 10 to TCO0. TCO0 was compared to 22 industry peers in the Consumer Staples Distribution & Retail industry. While TCO0 has a great profitability rating, there are quite some concerns on its financial health. TCO0 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCO0 was profitable.
In the past year TCO0 had a positive cash flow from operations.
TCO0 had positive earnings in each of the past 5 years.
In the past 5 years TCO0 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TCO0 (4.18%) is better than 68.18% of its industry peers.
TCO0 has a better Return On Equity (13.94%) than 68.18% of its industry peers.
With a decent Return On Invested Capital value of 8.79%, TCO0 is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is in line with the industry average of 8.97%.
The last Return On Invested Capital (8.79%) for TCO0 is above the 3 year average (6.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 13.94% | ||
| ROIC | 8.79% |
ROA(3y)2.77%
ROA(5y)4.88%
ROE(3y)10.05%
ROE(5y)17.78%
ROIC(3y)6.99%
ROIC(5y)6.43%
1.3 Margins
TCO0's Profit Margin of 2.33% is fine compared to the rest of the industry. TCO0 outperforms 77.27% of its industry peers.
TCO0's Profit Margin has improved in the last couple of years.
TCO0 has a Operating Margin of 4.37%. This is amongst the best in the industry. TCO0 outperforms 86.36% of its industry peers.
TCO0's Operating Margin has been stable in the last couple of years.
TCO0 has a worse Gross Margin (7.68%) than 95.45% of its industry peers.
TCO0's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.37% | ||
| PM (TTM) | 2.33% | ||
| GM | 7.68% |
OM growth 3Y-0.4%
OM growth 5Y-1.06%
PM growth 3Y-1.24%
PM growth 5Y6.83%
GM growth 3Y-0.41%
GM growth 5Y-0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TCO0 is still creating some value.
Compared to 1 year ago, TCO0 has less shares outstanding
The number of shares outstanding for TCO0 has been reduced compared to 5 years ago.
Compared to 1 year ago, TCO0 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.76 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCO0 has a Altman-Z score (2.76) which is comparable to the rest of the industry.
The Debt to FCF ratio of TCO0 is 10.60, which is on the high side as it means it would take TCO0, 10.60 years of fcf income to pay off all of its debts.
TCO0 has a Debt to FCF ratio of 10.60. This is comparable to the rest of the industry: TCO0 outperforms 40.91% of its industry peers.
TCO0 has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
TCO0 has a Debt to Equity ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.16
WACC7.59%
2.3 Liquidity
A Current Ratio of 0.64 indicates that TCO0 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, TCO0 is doing worse than 86.36% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that TCO0 may have some problems paying its short term obligations.
TCO0 has a worse Quick ratio (0.44) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.96% over the past year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
The Revenue has been growing slightly by 3.06% in the past year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)16.96%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%14.44%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.51% on average over the next years. This is quite good.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y0.24%
EPS Next 2Y5.9%
EPS Next 3Y6.75%
EPS Next 5Y8.51%
Revenue Next Year3.63%
Revenue Next 2Y3.02%
Revenue Next 3Y2.81%
Revenue Next 5Y2.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.94, TCO0 is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as TCO0.
TCO0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 16.13, the valuation of TCO0 can be described as correct.
63.64% of the companies in the same industry are cheaper than TCO0, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCO0 to the average of the S&P500 Index (22.69), we can say TCO0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCO0 is on the same level as its industry peers.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TCO0 does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)67.82
PEG (5Y)4.6
EPS Next 2Y5.9%
EPS Next 3Y6.75%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
TCO0's Dividend Yield is comparable with the industry average which is at 4.13.
TCO0's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
The dividend of TCO0 is nicely growing with an annual growth rate of 8.14%!
Dividend Growth(5Y)8.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TCO0 pays out 53.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TCO0 is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP53.14%
EPS Next 2Y5.9%
EPS Next 3Y6.75%
FRA:TCO0 (9/5/2025, 7:00:00 PM)
5.1
+0.05 (+0.99%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners48.48%
Inst Owner ChangeN/A
Ins Owners1.47%
Ins Owner ChangeN/A
Market Cap33.32B
Analysts80
Price Target5.2 (1.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
Yearly Dividend0.14
Dividend Growth(5Y)8.14%
DP53.14%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.24%
PT rev (3m)13.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 16.13 | ||
| P/S | 0.41 | ||
| P/FCF | 20.91 | ||
| P/OCF | 9.9 | ||
| P/B | 2.48 | ||
| P/tB | 4.4 | ||
| EV/EBITDA | 7.4 |
EPS(TTM)0.32
EY6.27%
EPS(NY)0.32
Fwd EY6.2%
FCF(TTM)0.24
FCFY4.78%
OCF(TTM)0.52
OCFY10.1%
SpS12.33
BVpS2.06
TBVpS1.16
PEG (NY)67.82
PEG (5Y)4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.18% | ||
| ROE | 13.94% | ||
| ROCE | 12.17% | ||
| ROIC | 8.79% | ||
| ROICexc | 10.7% | ||
| ROICexgc | 14.05% | ||
| OM | 4.37% | ||
| PM (TTM) | 2.33% | ||
| GM | 7.68% | ||
| FCFM | 1.98% |
ROA(3y)2.77%
ROA(5y)4.88%
ROE(3y)10.05%
ROE(5y)17.78%
ROIC(3y)6.99%
ROIC(5y)6.43%
ROICexc(3y)7.98%
ROICexc(5y)7.35%
ROICexgc(3y)10.02%
ROICexgc(5y)9.19%
ROCE(3y)9.65%
ROCE(5y)8.83%
ROICexcg growth 3Y13.34%
ROICexcg growth 5Y3.24%
ROICexc growth 3Y11.81%
ROICexc growth 5Y3.95%
OM growth 3Y-0.4%
OM growth 5Y-1.06%
PM growth 3Y-1.24%
PM growth 5Y6.83%
GM growth 3Y-0.41%
GM growth 5Y-0.13%
F-Score7
Asset Turnover1.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Debt/EBITDA | 2.71 | ||
| Cap/Depr | 86.7% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 3.97 | ||
| Cash Conversion | 60.53% | ||
| Profit Quality | 85.06% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.76 |
F-Score7
WACC7.59%
ROIC/WACC1.16
Cap/Depr(3y)80.22%
Cap/Depr(5y)77.43%
Cap/Sales(3y)2.05%
Cap/Sales(5y)2.09%
Profit Quality(3y)199.28%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.96%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%14.44%
EPS Next Y0.24%
EPS Next 2Y5.9%
EPS Next 3Y6.75%
EPS Next 5Y8.51%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
Revenue Next Year3.63%
Revenue Next 2Y3.02%
Revenue Next 3Y2.81%
Revenue Next 5Y2.41%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year53.54%
EBIT Next 3Y19.18%
EBIT Next 5Y13.17%
FCF growth 1Y-34.36%
FCF growth 3Y-18.76%
FCF growth 5YN/A
OCF growth 1Y-16.35%
OCF growth 3Y-8.04%
OCF growth 5Y127.45%