TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.2 EUR
+0.15 (+2.97%)
Overall TCO0 gets a fundamental rating of 4 out of 10. We evaluated TCO0 against 25 industry peers in the Consumer Staples Distribution & Retail industry. While TCO0 is still in line with the averages on profitability rating, there are 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.
TCO0 had a positive operating cash flow in the past year.
Each year in the past 5 years TCO0 has been profitable.
Each year in the past 5 years TCO0 had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.18%, TCO0 perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
With a Return On Equity value of 13.94%, TCO0 perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
TCO0 has a Return On Invested Capital of 8.79%. This is comparable to the rest of the industry: TCO0 outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TCO0 is below the industry average of 9.34%.
The last Return On Invested Capital (8.79%) for TCO0 is above the 3 year average (6.99%), which is a sign of increasing profitability.
| 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 better Profit Margin (2.33%) than 64.00% 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 80.00% of its industry peers.
TCO0's Operating Margin has been stable in the last couple of years.
TCO0 has a Gross Margin of 7.68%. This is amonst the worse of the industry: TCO0 underperforms 96.00% of its industry peers.
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.
TCO0 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TCO0 has been reduced compared to 5 years ago.
TCO0 has a worse debt/assets ratio than last year.
2.2 Solvency
TCO0 has an Altman-Z score of 2.77. 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.
TCO0 has a Altman-Z score (2.77) 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.
TCO0 has a Debt to FCF ratio of 10.60. This is in the lower half of the industry: TCO0 underperforms 68.00% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TCO0 has dependencies on debt financing.
With a Debt to Equity ratio value of 1.12, TCO0 is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.15
WACC7.67%
2.3 Liquidity
A Current Ratio of 0.64 indicates that TCO0 may have some problems paying its short term obligations.
TCO0's Current ratio of 0.64 is on the low side compared to the rest of the industry. TCO0 is outperformed by 92.00% of its industry peers.
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 of 0.44. This is comparable to the rest of the industry: TCO0 outperforms 56.00% 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 9.39% 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 3.44%.
TCO0 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
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
TCO0 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.19% yearly.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y4%
EPS Next 2Y7.66%
EPS Next 3Y7.64%
EPS Next 5Y5.19%
Revenue Next Year3.81%
Revenue Next 2Y3.35%
Revenue Next 3Y2.97%
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.
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
The Price/Earnings ratio is 16.25, which indicates a correct valuation of TCO0.
TCO0's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. TCO0 is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.38, the valuation of TCO0 can be described as correct.
68.00% of the companies in the same industry are cheaper than TCO0, based on the Price/Forward Earnings ratio.
TCO0's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCO0 is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCO0 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.3 | ||
| EV/EBITDA | 7.51 |
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.
TCO0 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.06
PEG (5Y)4.69
EPS Next 2Y7.66%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.19%.
Compared to an average industry Dividend Yield of 3.90, TCO0 has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 2Y7.66%
EPS Next 3Y7.64%
FRA:TCO0 (11/26/2025, 7:00:00 PM)
5.2
+0.15 (+2.97%)
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 Cap33.57B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.03 (-3.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)-3.41%
PT rev (3m)1.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.25%
EPS NY rev (3m)4.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.38 | ||
| P/S | 0.42 | ||
| P/FCF | 21.3 | ||
| P/OCF | 10.08 | ||
| P/B | 2.53 | ||
| P/tB | 4.48 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)0.32
EY6.15%
EPS(NY)0.36
Fwd EY6.95%
FCF(TTM)0.24
FCFY4.69%
OCF(TTM)0.52
OCFY9.92%
SpS12.34
BVpS2.06
TBVpS1.16
PEG (NY)4.06
PEG (5Y)4.69
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 | 2.77 |
F-Score7
WACC7.67%
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%
EPS Next 2Y7.66%
EPS Next 3Y7.64%
EPS Next 5Y5.19%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.81%
Revenue Next 2Y3.35%
Revenue Next 3Y2.97%
Revenue Next 5Y2.87%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y19.95%
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 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 6 / 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% 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%.