TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.15 EUR
+0.1 (+1.98%)
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. While TCO0 belongs to the best of the industry regarding profitability, there are concerns on its financial health. TCO0 is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TCO0 was profitable.
TCO0 had a positive operating cash flow in the past year.
TCO0 had positive earnings in each of the past 5 years.
Each year in the past 5 years TCO0 had a positive operating cash flow.
1.2 Ratios
TCO0's Return On Assets of 4.18% is fine compared to the rest of the industry. TCO0 outperforms 68.00% of its industry peers.
Looking at the Return On Equity, with a value of 13.94%, TCO0 is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
TCO0's Return On Invested Capital of 8.79% is fine compared to the rest 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 9.17%.
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
TCO0 has a Profit Margin of 2.33%. This is in the better half of the industry: TCO0 outperforms 72.00% of its industry peers.
TCO0's Profit Margin has improved in the last couple of years.
TCO0 has a Operating Margin of 4.37%. This is amongst the best in the industry. TCO0 outperforms 88.00% of its industry peers.
TCO0's Operating Margin has been stable in the last couple of years.
TCO0 has a worse Gross Margin (7.68%) than 92.00% 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.
The number of shares outstanding for TCO0 has been reduced compared to 1 year ago.
TCO0 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.76 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
TCO0 has a Altman-Z score (2.76) which is in line with 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.
Looking at the Debt to FCF ratio, with a value of 10.60, TCO0 is doing worse than 68.00% 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 in the lower half of the industry: TCO0 underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.76 |
ROIC/WACC1.15
WACC7.65%
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's Quick ratio of 0.44 is in line compared to the rest of the industry. TCO0 outperforms 52.00% of its industry peers.
| 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.
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 3.44%.
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 5.19% on average per year.
TCO0 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y4.74%
EPS Next 2Y7.81%
EPS Next 3Y8.34%
EPS Next 5Y5.19%
Revenue Next Year3.97%
Revenue Next 2Y3.44%
Revenue Next 3Y3.1%
Revenue Next 5Y2.87%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 16.09, the valuation of TCO0 can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of TCO0 is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.59. TCO0 is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.15, which indicates a correct valuation of TCO0.
The rest of the industry has a similar Price/Forward Earnings ratio as TCO0.
The average S&P500 Price/Forward Earnings ratio is at 23.80. TCO0 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCO0 is valued a bit cheaper than 64.00% of the companies in the same industry.
TCO0's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TCO0 is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.9 | ||
| EV/EBITDA | 7.39 |
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)3.4
PEG (5Y)4.64
EPS Next 2Y7.81%
EPS Next 3Y8.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, TCO0 has a reasonable but not impressive dividend return.
TCO0's Dividend Yield is comparable with the industry average which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.31, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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 2Y7.81%
EPS Next 3Y8.34%
FRA:TCO0 (12/10/2025, 7:00:00 PM)
5.15
+0.1 (+1.98%)
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 Cap33.06B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.12 (-0.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
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)2.52%
PT rev (3m)-1.4%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.71%
EPS NY rev (3m)4.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.15 | ||
| P/S | 0.41 | ||
| P/FCF | 20.9 | ||
| P/OCF | 9.89 | ||
| P/B | 2.48 | ||
| P/tB | 4.39 | ||
| EV/EBITDA | 7.39 |
EPS(TTM)0.32
EY6.21%
EPS(NY)0.36
Fwd EY7.07%
FCF(TTM)0.25
FCFY4.79%
OCF(TTM)0.52
OCFY10.11%
SpS12.46
BVpS2.08
TBVpS1.17
PEG (NY)3.4
PEG (5Y)4.64
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 | 2.76 |
F-Score7
WACC7.65%
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 Y4.74%
EPS Next 2Y7.81%
EPS Next 3Y8.34%
EPS Next 5Y5.19%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.97%
Revenue Next 2Y3.44%
Revenue Next 3Y3.1%
Revenue Next 5Y2.87%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year59.88%
EBIT Next 3Y19.58%
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 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 4.74% 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%.