TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - Deutsche Boerse Ag - GB00BLGZ9862 - Common Stock - Currency: EUR
TCO0 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
TCO0 had positive earnings in each of the past 5 years.
In the past 5 years TCO0 always reported a positive cash flow from operatings.
1.2 Ratios
TCO0 has a Return On Assets (2.76%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 11.32%, TCO0 is in line with its industry, outperforming 58.33% of the companies in the same industry.
TCO0 has a Return On Invested Capital (6.34%) 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 9.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 11.32% | ||
| ROIC | 6.34% |
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's Profit Margin of 1.91% is in line compared to the rest of the industry. TCO0 outperforms 54.17% of its industry peers.
TCO0's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 4.20%, TCO0 is doing good in the industry, outperforming 79.17% 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 7.24%, TCO0 is doing worse than 95.83% 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 | 4.2% | ||
| PM (TTM) | 1.91% | ||
| GM | 7.24% |
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) below the Cost of Capital (WACC), TCO0 is destroying value.
TCO0 has less shares outstanding than it did 1 year ago.
TCO0 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TCO0 has a worse debt to assets ratio.
2.2 Solvency
TCO0 has an Altman-Z score of 2.12. 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 (2.12) is worse than 75.00% of its industry peers.
TCO0 has a debt to FCF ratio of 9.94. This is a negative value and a sign of low solvency as TCO0 would need 9.94 years to pay back of all of its debts.
TCO0's Debt to FCF ratio of 9.94 is on the low side compared to the rest of the industry. TCO0 is outperformed by 66.67% of its industry peers.
TCO0 has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
TCO0 has a Debt to Equity ratio of 1.17. This is in the lower half of the industry: TCO0 underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 9.94 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.87
WACC7.28%
2.3 Liquidity
A Current Ratio of 0.66 indicates that TCO0 may have some problems paying its short term obligations.
TCO0's Current ratio of 0.66 is on the low side compared to the rest of the industry. TCO0 is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.46 indicates that TCO0 may have some problems paying its short term obligations.
TCO0 has a Quick ratio of 0.46. This is in the lower half of the industry: TCO0 underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.46 |
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%.
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.
The Revenue is expected to grow by 2.11% on average over the next years.
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
Based on the Price/Earnings ratio of 13.63, the valuation of TCO0 can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TCO0 indicates a somewhat cheap valuation: TCO0 is cheaper than 66.67% of the companies listed in the same industry.
TCO0's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
The Price/Forward Earnings ratio is 13.66, which indicates a correct valuation of TCO0.
62.50% of the companies in the same industry are cheaper than TCO0, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, TCO0 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 13.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCO0 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 6.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.93
EPS Next 2Y4.93%
EPS Next 3Y5.78%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.68%. 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 4.05.
Compared to an average S&P500 Dividend Yield of 2.45, TCO0 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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
64.33% of the earnings are spent on dividend by TCO0. This is not a sustainable payout ratio.
The dividend of TCO0 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP64.33%
EPS Next 2Y4.93%
EPS Next 3Y5.78%
FRA:TCO0 (5/2/2025, 7:00:00 PM)
4.36
+0.06 (+1.4%)
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 Cap29.26B
Analysts80
Price Target4.59 (5.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend0.15
Dividend Growth(5Y)8.14%
DP64.33%
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)-9.61%
PT rev (3m)-6.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.41%
EPS NY rev (3m)-7.31%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 13.66 | ||
| P/S | 0.36 | ||
| P/FCF | 16.95 | ||
| P/OCF | 8.78 | ||
| P/B | 2.16 | ||
| P/tB | 3.86 | ||
| EV/EBITDA | 6.73 |
EPS(TTM)0.32
EY7.34%
EPS(NY)0.32
Fwd EY7.32%
FCF(TTM)0.26
FCFY5.9%
OCF(TTM)0.5
OCFY11.38%
SpS12.01
BVpS2.02
TBVpS1.13
PEG (NY)N/A
PEG (5Y)3.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 11.32% | ||
| ROCE | 8.73% | ||
| ROIC | 6.34% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 9.16% | ||
| OM | 4.2% | ||
| PM (TTM) | 1.91% | ||
| GM | 7.24% | ||
| FCFM | 2.14% |
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)7.68%
ROICexc(5y)7.17%
ROICexgc(3y)9.54%
ROICexgc(5y)8.9%
ROCE(3y)9.65%
ROCE(5y)8.83%
ROICexcg growth 3Y8.74%
ROICexcg growth 5Y0.7%
ROICexc growth 3Y8.19%
ROICexc growth 5Y1.92%
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-Score8
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 9.94 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 78.78% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 3.53 | ||
| Cash Conversion | 61.46% | ||
| Profit Quality | 112.27% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 2.12 |
F-Score8
WACC7.28%
ROIC/WACC0.87
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 1Y14.65%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year59.07%
EBIT Next 3Y18.34%
EBIT Next 5Y12.62%
FCF growth 1Y-48.41%
FCF growth 3Y-18.76%
FCF growth 5YN/A
OCF growth 1Y-32.45%
OCF growth 3Y-8.04%
OCF growth 5Y127.45%