TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.1 EUR
+0.28 (+5.81%)
We assign a fundamental rating of 4 out of 10 to TCO0. TCO0 was compared to 26 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 has a correct valuation and a medium 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.
Each year in the past 5 years TCO0 has been profitable.
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 69.23% of its industry peers.
The Return On Equity of TCO0 (13.94%) is better than 65.38% of its industry peers.
TCO0 has a Return On Invested Capital of 8.79%. This is in the better half of the industry: TCO0 outperforms 61.54% of its industry peers.
TCO0 had an Average Return On Invested Capital over the past 3 years of 6.99%. This is below the industry average of 9.49%.
The 3 year average ROIC (6.99%) for TCO0 is below the current ROIC(8.79%), indicating increased profibility in the last year.
| 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 69.23% of the companies in the same industry.
TCO0's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 4.37%, TCO0 belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
TCO0's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 7.68%, TCO0 is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
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
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.75 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TCO0 (2.75) is comparable to the rest of the industry.
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: 69.23% 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.
The Debt to Equity ratio of TCO0 (1.12) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.15
WACC7.64%
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 88.46% of the companies in the same industry.
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.
With a Quick ratio value of 0.44, TCO0 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
TCO0 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
The Revenue has been growing slightly by 3.44% in the past year.
Measured over the past years, TCO0 shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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
The Earnings Per Share is expected to grow by 5.19% on average over the next years.
TCO0 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y4.88%
EPS Next 2Y7.96%
EPS Next 3Y8.3%
EPS Next 5Y5.19%
Revenue Next Year3.96%
Revenue Next 2Y3.43%
Revenue Next 3Y3.08%
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.
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
A Price/Earnings ratio of 15.94 indicates a correct valuation of TCO0.
TCO0's Price/Earnings is on the same level as the industry average.
TCO0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 13.94 indicates a correct valuation of TCO0.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCO0 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TCO0 to the average of the S&P500 Index (23.23), we can say TCO0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCO0 indicates a somewhat cheap valuation: TCO0 is cheaper than 65.38% of the companies listed in the same industry.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.66 | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TCO0 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)4.6
EPS Next 2Y7.96%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.23%.
TCO0's Dividend Yield is a higher than the industry average which is at 2.79.
Compared to an average S&P500 Dividend Yield of 1.94, TCO0 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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.
TCO0's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP53.14%
EPS Next 2Y7.96%
EPS Next 3Y8.3%
FRA:TCO0 (1/2/2026, 7:00:00 PM)
5.1
+0.28 (+5.81%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners57.02%
Inst Owner ChangeN/A
Ins Owners1.51%
Ins Owner ChangeN/A
Market Cap32.74B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.15 (0.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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)2.41%
PT rev (3m)0.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.14%
EPS NY rev (3m)3.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 13.94 | ||
| P/S | 0.41 | ||
| P/FCF | 20.66 | ||
| P/OCF | 9.78 | ||
| P/B | 2.45 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)0.32
EY6.27%
EPS(NY)0.37
Fwd EY7.17%
FCF(TTM)0.25
FCFY4.84%
OCF(TTM)0.52
OCFY10.23%
SpS12.48
BVpS2.08
TBVpS1.17
PEG (NY)3.26
PEG (5Y)4.6
Graham Number3.87
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 | 2.75 |
F-Score7
WACC7.64%
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 Y4.88%
EPS Next 2Y7.96%
EPS Next 3Y8.3%
EPS Next 5Y5.19%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.96%
Revenue Next 2Y3.43%
Revenue Next 3Y3.08%
Revenue Next 5Y2.87%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year59.92%
EBIT Next 3Y19.59%
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 for TCO0 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 7 / 10.
What is the financial health of TESCO PLC (TCO0.DE) stock?
The financial health rating of TESCO PLC (TCO0.DE) is 2 / 10.
What is the expected EPS growth for TESCO PLC (TCO0.DE) stock?
The Earnings per Share (EPS) of TESCO PLC (TCO0.DE) is expected to grow by 4.88% in the next year.