TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - Deutsche Boerse Ag - GB00BLGZ9862 - Common Stock - Currency: EUR
Overall TCO0 gets a fundamental rating of 4 out of 10. We evaluated TCO0 against 28 industry peers in the Consumer Staples Distribution & Retail industry. There are concerns on the financial health of TCO0 while its profitability can be described as average. 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.
TCO0 had a positive operating cash flow in the past year.
In the past 5 years TCO0 has always been profitable.
Each year in the past 5 years TCO0 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TCO0 (2.76%) is comparable to the rest of the industry.
TCO0's Return On Equity of 11.32% is in line compared to the rest of the industry. TCO0 outperforms 50.00% of its industry peers.
TCO0's Return On Invested Capital of 6.43% is fine compared to the rest of the industry. TCO0 outperforms 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.28%.
The last Return On Invested Capital (6.43%) for TCO0 is above the 3 year average (6.15%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 11.32% | ||
| ROIC | 6.43% |
ROA(3y)2.38%
ROA(5y)4.41%
ROE(3y)8.55%
ROE(5y)16.45%
ROIC(3y)6.15%
ROIC(5y)5.92%
1.3 Margins
TCO0's Profit Margin of 1.91% is in line compared to the rest of the industry. TCO0 outperforms 46.43% of its industry peers.
In the last couple of years the Profit Margin of TCO0 has declined.
TCO0 has a Operating Margin of 4.20%. This is in the better half of the industry: TCO0 outperforms 78.57% of its industry peers.
TCO0's Operating Margin has been stable in the last couple of years.
TCO0 has a Gross Margin of 7.24%. This is amonst the worse of the industry: TCO0 underperforms 96.43% of its industry peers.
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 3Y3.72%
OM growth 5Y0.42%
PM growth 3Y-44.67%
PM growth 5Y-2.6%
GM growth 3Y1.51%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCO0 is destroying value.
Compared to 1 year ago, TCO0 has less shares outstanding
The number of shares outstanding for TCO0 has been reduced compared to 5 years ago.
The debt/assets ratio for TCO0 has been reduced compared to a year ago.
2.2 Solvency
TCO0 has an Altman-Z score of 2.13. 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 (2.13) is worse than 78.57% 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.
The Debt to FCF ratio of TCO0 (9.94) is worse than 67.86% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that TCO0 has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.17, TCO0 is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 9.94 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.87
WACC7.41%
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 82.14% of its industry peers.
TCO0 has a Quick Ratio of 0.66. This is a bad value and indicates that TCO0 is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.46, TCO0 is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for TCO0 have decreased by -1.62% in the last year.
The Earnings Per Share has been growing slightly by 6.69% on average over the past years.
The Revenue has been growing slightly by 3.31% in the past year.
TCO0 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)-1.62%
EPS 3Y24.73%
EPS 5Y6.69%
EPS Q2Q%19.25%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y5.61%
Revenue growth 5Y1.3%
Sales Q2Q%3.02%
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 6.14% on average per year.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 1.86% on average per year.
EPS Next Y15.01%
EPS Next 2Y12.6%
EPS Next 3Y11.11%
EPS Next 5Y6.14%
Revenue Next Year1.7%
Revenue Next 2Y2.31%
Revenue Next 3Y2.34%
Revenue Next 5Y1.86%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.52 indicates a correct valuation of TCO0.
60.71% of the companies in the same industry are more expensive than TCO0, based on the Price/Earnings ratio.
TCO0 is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
TCO0 is valuated correctly with a Price/Forward Earnings ratio of 12.75.
The rest of the industry has a similar Price/Forward Earnings ratio as TCO0.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, TCO0 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.75 |
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 | 17.31 | ||
| EV/EBITDA | 6.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.97
PEG (5Y)2.17
EPS Next 2Y12.6%
EPS Next 3Y11.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, TCO0 has a reasonable but not impressive dividend return.
TCO0's Dividend Yield is comparable with the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.33, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of TCO0 is nicely growing with an annual growth rate of 16.60%!
Dividend Growth(5Y)16.6%
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.
TCO0's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.33%
EPS Next 2Y12.6%
EPS Next 3Y11.11%
FRA:TCO0 (3/7/2025, 7:00:00 PM)
4.5
+0.06 (+1.35%)
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 Cap30.32B
Analysts80
Price Target5.04 (12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend0.13
Dividend Growth(5Y)16.6%
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)2.96%
PT rev (3m)1.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.75 | ||
| P/S | 0.37 | ||
| P/FCF | 17.31 | ||
| P/OCF | 8.97 | ||
| P/B | 2.2 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 6.85 |
EPS(TTM)0.31
EY6.89%
EPS(NY)0.35
Fwd EY7.84%
FCF(TTM)0.26
FCFY5.78%
OCF(TTM)0.5
OCFY11.15%
SpS12.15
BVpS2.05
TBVpS1.14
PEG (NY)0.97
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 11.32% | ||
| ROCE | 8.73% | ||
| ROIC | 6.43% | ||
| ROICexc | 7.64% | ||
| ROICexgc | 9.3% | ||
| OM | 4.2% | ||
| PM (TTM) | 1.91% | ||
| GM | 7.24% | ||
| FCFM | 2.14% |
ROA(3y)2.38%
ROA(5y)4.41%
ROE(3y)8.55%
ROE(5y)16.45%
ROIC(3y)6.15%
ROIC(5y)5.92%
ROICexc(3y)7.16%
ROICexc(5y)7.11%
ROICexgc(3y)8.86%
ROICexgc(5y)8.95%
ROCE(3y)8.31%
ROCE(5y)7.95%
ROICexcg growth 3Y4.07%
ROICexcg growth 5Y2.01%
ROICexc growth 3Y5.48%
ROICexc growth 5Y2.73%
OM growth 3Y3.72%
OM growth 5Y0.42%
PM growth 3Y-44.67%
PM growth 5Y-2.6%
GM growth 3Y1.51%
GM growth 5Y-0.16%
F-Score7
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 | 2.13 |
F-Score7
WACC7.41%
ROIC/WACC0.87
Cap/Depr(3y)74.18%
Cap/Depr(5y)71.26%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.06%
Profit Quality(3y)228.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.62%
EPS 3Y24.73%
EPS 5Y6.69%
EPS Q2Q%19.25%
EPS Next Y15.01%
EPS Next 2Y12.6%
EPS Next 3Y11.11%
EPS Next 5Y6.14%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y5.61%
Revenue growth 5Y1.3%
Sales Q2Q%3.02%
Revenue Next Year1.7%
Revenue Next 2Y2.31%
Revenue Next 3Y2.34%
Revenue Next 5Y1.86%
EBIT growth 1Y14.65%
EBIT growth 3Y9.54%
EBIT growth 5Y1.73%
EBIT Next Year65.62%
EBIT Next 3Y20.68%
EBIT Next 5Y11.24%
FCF growth 1Y-36.67%
FCF growth 3YN/A
FCF growth 5Y10.83%
OCF growth 1Y-18.4%
OCF growth 3Y79%
OCF growth 5Y6.48%