TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.15 EUR
-0.05 (-0.96%)
We assign a fundamental rating of 4 out of 10 to TCO0. TCO0 was compared to 25 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCO0 was profitable.
TCO0 had a positive operating cash flow in the past year.
TCO0 had positive earnings in each of the past 5 years.
TCO0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TCO0 (4.18%) is comparable to the rest of the industry.
TCO0's Return On Equity of 13.94% is in line compared to the rest of the industry. TCO0 outperforms 60.00% of its industry peers.
TCO0 has a Return On Invested Capital (8.79%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.34%.
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
With a decent Profit Margin value of 2.33%, TCO0 is doing good in the industry, outperforming 64.00% of the companies in the same industry.
TCO0's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 4.37%, TCO0 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
TCO0's Operating Margin has been stable in the last couple of years.
The Gross Margin of TCO0 (7.68%) is worse than 96.00% 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
TCO0 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TCO0 has less shares outstanding than it did 1 year ago.
TCO0 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.77 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCO0's Altman-Z score of 2.77 is in line compared to the rest of the industry. TCO0 outperforms 44.00% of 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.
With a Debt to FCF ratio value of 10.60, TCO0 is not doing good in the industry: 68.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TCO0 has dependencies on debt financing.
With a Debt to Equity ratio value of 1.12, TCO0 is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.15
WACC7.66%
2.3 Liquidity
A Current Ratio of 0.64 indicates that TCO0 may have some problems paying its short term obligations.
TCO0 has a Current ratio of 0.64. This is amonst the worse of the industry: TCO0 underperforms 92.00% of its industry peers.
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 comparable to the rest of the industry: TCO0 outperforms 56.00% 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 9.39% over the past year.
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 3.44%.
TCO0 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
EPS 1Y (TTM)9.39%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%5.54%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
3.2 Future
TCO0 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.19% yearly.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y4%
EPS Next 2Y7.66%
EPS Next 3Y7.64%
EPS Next 5Y5.19%
Revenue Next Year3.81%
Revenue Next 2Y3.35%
Revenue Next 3Y2.97%
Revenue Next 5Y2.87%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TCO0 is valuated correctly with a Price/Earnings ratio of 16.09.
TCO0's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. TCO0 is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.21 indicates a correct valuation of TCO0.
Based on the Price/Forward Earnings ratio, TCO0 is valued a bit more expensive than the industry average as 68.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of TCO0 to the average of the S&P500 Index (36.12), we can say TCO0 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.21 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCO0 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.05 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)4.64
EPS Next 2Y7.66%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, TCO0 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.90, TCO0 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
On average, the dividend of TCO0 grows each year by 8.14%, which is quite nice.
Dividend Growth(5Y)8.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
53.14% of the earnings are spent on dividend by TCO0. This is a bit on the high side, but may be sustainable.
TCO0's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.14%
EPS Next 2Y7.66%
EPS Next 3Y7.64%
FRA:TCO0 (11/27/2025, 7:00:00 PM)
5.15
-0.05 (-0.96%)
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 Cap33.25B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.03 (-2.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)-3.41%
PT rev (3m)1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.25%
EPS NY rev (3m)4.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.21 | ||
| P/S | 0.42 | ||
| P/FCF | 21.05 | ||
| P/OCF | 9.96 | ||
| P/B | 2.5 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)0.32
EY6.21%
EPS(NY)0.36
Fwd EY7.04%
FCF(TTM)0.24
FCFY4.75%
OCF(TTM)0.52
OCFY10.04%
SpS12.37
BVpS2.06
TBVpS1.16
PEG (NY)4.02
PEG (5Y)4.64
Graham Number3.86
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%
ROICexgc growth 3Y13.34%
ROICexgc 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 | 2.77 |
F-Score7
WACC7.66%
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)9.39%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%5.54%
EPS Next Y4%
EPS Next 2Y7.66%
EPS Next 3Y7.64%
EPS Next 5Y5.19%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.81%
Revenue Next 2Y3.35%
Revenue Next 3Y2.97%
Revenue Next 5Y2.87%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y19.95%
EBIT Next 5Y12.86%
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%
TESCO PLC / TCO0.DE FAQ
What is the fundamental rating for TCO0 stock?
ChartMill assigns a fundamental rating of 4 / 10 to TCO0.DE.
What is the valuation status of TESCO PLC (TCO0.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to TESCO PLC (TCO0.DE). This can be considered as Fairly Valued.
What is the profitability of TCO0 stock?
TESCO PLC (TCO0.DE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for TCO0 stock?
The Earnings per Share (EPS) of TESCO PLC (TCO0.DE) is expected to grow by 4% in the next year.
Can you provide the dividend sustainability for TCO0 stock?
The dividend rating of TESCO PLC (TCO0.DE) is 4 / 10 and the dividend payout ratio is 53.14%.