TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - Deutsche Boerse Ag - GB00BLGZ9862 - Common Stock - Currency: EUR
Taking everything into account, TCO0 scores 4 out of 10 in our fundamental rating. TCO0 was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. While TCO0 belongs to the best of the industry regarding profitability, there are concerns on its financial health. TCO0 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TCO0 had positive earnings in the past year.
In the past year TCO0 had a positive cash flow from operations.
In the past 5 years TCO0 has always been profitable.
TCO0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.18%, TCO0 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.94%, TCO0 is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.79%, TCO0 is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.41%.
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 has a Profit Margin of 2.33%. This is in the better half of the industry: TCO0 outperforms 70.83% of its industry peers.
TCO0's Profit Margin has improved in the last couple of years.
TCO0's Operating Margin of 4.37% is amongst the best of the industry. TCO0 outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
The Gross Margin of TCO0 (7.68%) is worse than 95.83% of its industry peers.
In the last couple of years the Gross Margin of TCO0 has remained more or less at the same level.
| 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.
Compared to 5 years ago, TCO0 has less shares outstanding
TCO0 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCO0 has a Altman-Z score (2.70) which is in line with its industry peers.
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.
The Debt to FCF ratio of TCO0 (10.60) is worse than 62.50% 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 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.21
WACC7.29%
2.3 Liquidity
A Current Ratio of 0.64 indicates that TCO0 may have some problems paying its short term obligations.
The Current ratio of TCO0 (0.64) is worse than 87.50% 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.
The Quick ratio of TCO0 (0.44) is worse than 62.50% 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.
TCO0 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 7.51% on average per year.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y-0.54%
EPS Next 2Y4.93%
EPS Next 3Y5.78%
EPS Next 5Y7.51%
Revenue Next Year2.63%
Revenue Next 2Y2.56%
Revenue Next 3Y2.58%
Revenue Next 5Y2.11%
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 14.50.
Compared to the rest of the industry, the Price/Earnings ratio of TCO0 indicates a somewhat cheap valuation: TCO0 is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.43, TCO0 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.37, TCO0 is valued correctly.
62.50% 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 (22.17), we can say TCO0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 14.37 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TCO0, based on the Enterprise Value to EBITDA ratio.
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 | 18.85 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.18
EPS Next 2Y4.93%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.58%.
TCO0's Dividend Yield is a higher than the industry average which is at 3.78.
TCO0's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
53.14% of the earnings are spent on dividend by TCO0. This is a bit on the high side, but may be sustainable.
The dividend of TCO0 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.14%
EPS Next 2Y4.93%
EPS Next 3Y5.78%
FRA:TCO0 (6/4/2025, 7:00:00 PM)
4.64
-0.02 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners56.7%
Inst Owner ChangeN/A
Ins Owners1.46%
Ins Owner ChangeN/A
Market Cap30.90B
Analysts80
Price Target4.59 (-1.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend0.15
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%
PT rev (3m)-8.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.25%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 14.37 | ||
| P/S | 0.37 | ||
| P/FCF | 18.85 | ||
| P/OCF | 8.92 | ||
| P/B | 2.23 | ||
| P/tB | 3.96 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)0.32
EY6.9%
EPS(NY)0.32
Fwd EY6.96%
FCF(TTM)0.25
FCFY5.3%
OCF(TTM)0.52
OCFY11.21%
SpS12.44
BVpS2.08
TBVpS1.17
PEG (NY)N/A
PEG (5Y)4.18
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 | 2.7 |
F-Score7
WACC7.29%
ROIC/WACC1.21
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 Y-0.54%
EPS Next 2Y4.93%
EPS Next 3Y5.78%
EPS Next 5Y7.51%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
Revenue Next Year2.63%
Revenue Next 2Y2.56%
Revenue Next 3Y2.58%
Revenue Next 5Y2.11%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year53.54%
EBIT Next 3Y17.99%
EBIT Next 5Y12.62%
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%