TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.25 EUR
+0.2 (+3.96%)
TCO0 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 23 industry peers in the Consumer Staples Distribution & Retail industry. TCO0 has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, TCO0 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TCO0 was profitable.
TCO0 had a positive operating cash flow in the past year.
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
TCO0's Return On Assets of 4.18% is fine compared to the rest of the industry. TCO0 outperforms 69.57% of its industry peers.
The Return On Equity of TCO0 (13.94%) is better than 69.57% of its industry peers.
TCO0's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. TCO0 outperforms 65.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.23%.
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 73.91% 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 91.30% of its industry peers.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
TCO0 has a Gross Margin of 7.68%. This is amonst the worse of the industry: TCO0 underperforms 91.30% 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
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
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
TCO0 has an Altman-Z score of 2.75. 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.
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.
Looking at the Debt to FCF ratio, with a value of 10.60, TCO0 is doing worse than 65.22% of the companies in the same industry.
TCO0 has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
TCO0 has a Debt to Equity ratio of 1.12. This is comparable to the rest of the industry: TCO0 outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.14
WACC7.69%
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 86.96% 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.
TCO0 has a Quick ratio (0.44) which is comparable to the rest of the industry.
| 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 9.39%, which is quite good.
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.
The Revenue has been growing slightly by 3.78% on average over the past years.
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
Based on estimates for the next years, TCO0 will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
The Revenue is expected to grow by 2.76% on average over the next years.
EPS Next Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.61%
EPS Next 5Y6.9%
Revenue Next Year3.55%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5Y2.76%
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
With a Price/Earnings ratio of 16.41, TCO0 is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of TCO0 is on the same level as its industry peers.
TCO0 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
TCO0 is valuated correctly with a Price/Forward Earnings ratio of 14.68.
Based on the Price/Forward Earnings ratio, TCO0 is valued a bit more expensive than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, TCO0 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 14.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TCO0.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.46 | ||
| EV/EBITDA | 7.32 |
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.
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)9.57
PEG (5Y)4.73
EPS Next 2Y6.54%
EPS Next 3Y7.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, TCO0 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.77, TCO0 has a dividend in line with its industry peers.
TCO0's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
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, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.14%
EPS Next 2Y6.54%
EPS Next 3Y7.61%
FRA:TCO0 (10/24/2025, 7:00:00 PM)
5.25
+0.2 (+3.96%)
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 Cap34.15B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.21 (-0.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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)2.07%
PT rev (3m)4.14%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 14.68 | ||
| P/S | 0.42 | ||
| P/FCF | 21.46 | ||
| P/OCF | 10.16 | ||
| P/B | 2.54 | ||
| P/tB | 4.51 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)0.32
EY6.1%
EPS(NY)0.36
Fwd EY6.81%
FCF(TTM)0.24
FCFY4.66%
OCF(TTM)0.52
OCFY9.85%
SpS12.37
BVpS2.06
TBVpS1.16
PEG (NY)9.57
PEG (5Y)4.73
Graham Number3.85
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
WACC7.69%
ROIC/WACC1.14
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 Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.61%
EPS Next 5Y6.9%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.55%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5Y2.76%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y19.86%
EBIT Next 5Y12.9%
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 3 / 10 to TESCO PLC (TCO0.DE). This can be considered as Overvalued.
What is the profitability of TCO0 stock?
TESCO PLC (TCO0.DE) has a profitability rating of 7 / 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 1.71% 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%.