TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.05 EUR
0 (0%)
Overall TCO0 gets a fundamental rating of 4 out of 10. We evaluated TCO0 against 22 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of TCO0 while its profitability can be described as average. TCO0 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TCO0 had positive earnings in the past year.
TCO0 had a positive operating cash flow in the past year.
In the past 5 years TCO0 has always been profitable.
In the past 5 years TCO0 always reported a positive cash flow from operatings.
1.2 Ratios
TCO0's Return On Assets of 4.18% is fine compared to the rest of the industry. TCO0 outperforms 63.64% of its industry peers.
With a decent Return On Equity value of 13.94%, TCO0 is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Return On Invested Capital of TCO0 (8.79%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TCO0 is below the industry average of 9.45%.
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 72.73% of its industry peers.
TCO0's Profit Margin has improved in the last couple of years.
The Operating Margin of TCO0 (4.37%) is better than 90.91% of its industry peers.
TCO0's Operating Margin has been stable in the last couple of years.
TCO0 has a Gross Margin of 7.68%. This is amonst the worse of the industry: TCO0 underperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCO0 is 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.
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
TCO0 has an Altman-Z score of 2.76. This is not the best score and indicates that TCO0 is in the grey zone with still only limited risk for bankruptcy at the moment.
TCO0 has a Altman-Z score (2.76) which is in line with its industry peers.
TCO0 has a debt to FCF ratio of 10.60. This is a negative value and a sign of low solvency as TCO0 would need 10.60 years to pay back of all of its debts.
The Debt to FCF ratio of TCO0 (10.60) is worse than 63.64% 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.
Looking at the Debt to Equity ratio, with a value of 1.12, TCO0 is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.15
WACC7.61%
2.3 Liquidity
TCO0 has a Current Ratio of 0.64. This is a bad value and indicates that TCO0 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.64, TCO0 is not doing good in the industry: 90.91% of the companies in the same industry are doing better.
TCO0 has a Quick Ratio of 0.64. This is a bad value and indicates that TCO0 is not financially healthy enough and could expect problems in meeting its short term obligations.
TCO0 has a Quick ratio of 0.44. This is in the lower half of the industry: TCO0 underperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
TCO0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.96%, which is quite good.
Measured over the past 5 years, TCO0 shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
TCO0 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
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
Based on estimates for the next years, TCO0 will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
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 Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.69%
EPS Next 5Y8.51%
Revenue Next Year3.59%
Revenue Next 2Y3.06%
Revenue Next 3Y2.85%
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
TCO0 is valuated correctly with a Price/Earnings ratio of 16.29.
TCO0's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.67, TCO0 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.82, TCO0 is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCO0 indicates a slightly more expensive valuation: TCO0 is more expensive than 63.64% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TCO0 to the average of the S&P500 Index (23.13), we can say TCO0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.82 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA ratio is in line with the industry average.
TCO0's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.78 | ||
| EV/EBITDA | 7.36 |
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.
TCO0 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.5
PEG (5Y)4.7
EPS Next 2Y6.54%
EPS Next 3Y7.69%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.16%.
TCO0's Dividend Yield is comparable with the industry average which is at 3.87.
TCO0's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 2Y6.54%
EPS Next 3Y7.69%
FRA:TCO0 (9/29/2025, 7:00:00 PM)
5.05
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners55.45%
Inst Owner ChangeN/A
Ins Owners1.48%
Ins Owner ChangeN/A
Market Cap32.94B
Analysts80
Price Target5.1 (0.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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)0.23%
PT rev (3m)2.03%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.48%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.29 | ||
| Fwd PE | 15.82 | ||
| P/S | 0.41 | ||
| P/FCF | 20.78 | ||
| P/OCF | 9.83 | ||
| P/B | 2.46 | ||
| P/tB | 4.37 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)0.31
EY6.14%
EPS(NY)0.32
Fwd EY6.32%
FCF(TTM)0.24
FCFY4.81%
OCF(TTM)0.51
OCFY10.17%
SpS12.29
BVpS2.05
TBVpS1.16
PEG (NY)9.5
PEG (5Y)4.7
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
WACC7.61%
ROIC/WACC1.15
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 Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.69%
EPS Next 5Y8.51%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
Revenue Next Year3.59%
Revenue Next 2Y3.06%
Revenue Next 3Y2.85%
Revenue Next 5Y2.41%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y19.03%
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%