TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - Deutsche Boerse Ag - GB00BLGZ9862 - Common Stock - Currency: EUR
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. TCO0 has a medium profitability rating, but doesn't score so well on its financial health evaluation. TCO0 is not valued too expensively and it also shows 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.
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 has a better Return On Assets (4.18%) than 64.00% of its industry peers.
TCO0 has a Return On Equity (13.94%) which is comparable to the rest of the industry.
TCO0 has a Return On Invested Capital of 8.79%. This is in the better half of the industry: TCO0 outperforms 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.19%.
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
The Profit Margin of TCO0 (2.33%) is better than 72.00% of its industry peers.
In the last couple of years the Profit Margin of TCO0 has grown nicely.
With an excellent Operating Margin value of 4.37%, TCO0 belongs to the best of the industry, outperforming 88.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
Looking at the Gross Margin, with a value of 7.68%, TCO0 is doing worse than 96.00% of the companies in the same industry.
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
Compared to 5 years ago, TCO0 has less shares outstanding
Compared to 1 year ago, TCO0 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.71 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCO0's Altman-Z score of 2.71 is in line compared to the rest of the industry. TCO0 outperforms 52.00% 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.
TCO0 has a Debt to FCF ratio of 10.60. This is in the lower half of the industry: TCO0 underperforms 60.00% 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's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. TCO0 is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.17
WACC7.5%
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 88.00% of its industry peers.
A Quick Ratio of 0.44 indicates that TCO0 may have some problems paying its short term obligations.
TCO0 has a Quick ratio of 0.44. This is in the lower half of the industry: TCO0 underperforms 64.00% 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 16.96% over the past year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
TCO0 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
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)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 8.32% on average per year.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-0.54%
EPS Next 2Y4.93%
EPS Next 3Y5.83%
EPS Next 5Y8.32%
Revenue Next Year2.63%
Revenue Next 2Y2.56%
Revenue Next 3Y2.34%
Revenue Next 5Y2.28%
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
A Price/Earnings ratio of 14.56 indicates a correct valuation of TCO0.
TCO0's Price/Earnings ratio is in line with the industry average.
TCO0's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 14.81, TCO0 is valued correctly.
Based on the Price/Forward Earnings ratio, TCO0 is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, TCO0 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.81 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA is on the same level as the industry average.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.17 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
TCO0 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.2
EPS Next 2Y4.93%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.42%. Purely for dividend investing, there may be better candidates out there.
TCO0's Dividend Yield is a higher than the industry average which is at 3.86.
Compared to an average S&P500 Dividend Yield of 2.35, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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.
TCO0's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP53.14%
EPS Next 2Y4.93%
EPS Next 3Y5.83%
FRA:TCO0 (7/11/2025, 7:00:00 PM)
4.66
-0.04 (-0.85%)
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 Cap30.63B
Analysts80
Price Target5 (7.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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)5.57%
PT rev (3m)1.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.81 | ||
| P/S | 0.38 | ||
| P/FCF | 19.17 | ||
| P/OCF | 9.07 | ||
| P/B | 2.27 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)0.32
EY6.87%
EPS(NY)0.31
Fwd EY6.75%
FCF(TTM)0.24
FCFY5.22%
OCF(TTM)0.51
OCFY11.02%
SpS12.29
BVpS2.05
TBVpS1.16
PEG (NY)N/A
PEG (5Y)4.2
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 | 2.71 |
F-Score7
WACC7.5%
ROIC/WACC1.17
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 3Y5.83%
EPS Next 5Y8.32%
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 3Y2.34%
Revenue Next 5Y2.28%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year53.54%
EBIT Next 3Y18.35%
EBIT Next 5Y13.08%
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%