TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.2 EUR
+0.1 (+1.96%)
Overall TCO0 gets a fundamental rating of 4 out of 10. We evaluated TCO0 against 24 industry peers in the Consumer Staples Distribution & Retail industry. TCO0 has an excellent profitability rating, but there are concerns on its financial health. TCO0 is not valued too expensively and it also shows a decent 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.
TCO0 had positive earnings in each of the past 5 years.
TCO0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.18%, TCO0 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.94%, TCO0 is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.79%, TCO0 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TCO0 is below the industry average of 9.51%.
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 70.83% 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 87.50% of its industry peers.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
With a Gross Margin value of 7.68%, TCO0 is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCO0 is 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.
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
TCO0 has an Altman-Z score of 2.78. 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 (2.78) which is in line with its industry peers.
The Debt to FCF ratio of TCO0 is 10.60, which is on the high side as it means it would take TCO0, 10.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.60, TCO0 is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TCO0 has dependencies on debt financing.
TCO0 has a worse Debt to Equity ratio (1.12) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.15
WACC7.67%
2.3 Liquidity
TCO0 has a Current 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's Current ratio of 0.64 is on the low side compared to the rest of the industry. TCO0 is outperformed by 87.50% 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.
Looking at the Quick ratio, with a value of 0.44, TCO0 is in line with its industry, outperforming 54.17% of the companies in the same industry.
| 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.
Measured over the past 5 years, TCO0 shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
The Revenue has been growing slightly by 3.44% in the past year.
Measured over the past years, TCO0 shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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.
The Revenue is expected to grow by 2.87% on average over the next years.
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.
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
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.
Compared to an average S&P500 Price/Earnings ratio of 25.45, TCO0 is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.42 indicates a correct valuation of TCO0.
Based on the Price/Forward Earnings ratio, TCO0 is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
TCO0's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 14.42 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA ratio is in line with the industry average.
TCO0's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.37 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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%.
TCO0's Dividend Yield is comparable with the industry average which is at 3.98.
TCO0's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
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 (11/21/2025, 7:00:00 PM)
5.2
+0.1 (+1.96%)
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 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 | 14.42 | ||
| P/S | 0.42 | ||
| P/FCF | 21.37 | ||
| P/OCF | 10.11 | ||
| P/B | 2.53 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)0.32
EY6.15%
EPS(NY)0.36
Fwd EY6.93%
FCF(TTM)0.24
FCFY4.68%
OCF(TTM)0.51
OCFY9.89%
SpS12.3
BVpS2.05
TBVpS1.16
PEG (NY)4.06
PEG (5Y)4.69
Graham Number3.84
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 | 2.78 |
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 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% 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%.