TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5 EUR
-0.2 (-3.85%)
Overall TCO0 gets a fundamental rating of 4 out of 10. We evaluated TCO0 against 21 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 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.
TCO0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TCO0 (4.18%) is better than 66.67% of its industry peers.
TCO0's Return On Equity of 13.94% is fine compared to the rest of the industry. TCO0 outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 8.79%, TCO0 is doing good in the industry, outperforming 61.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.40%.
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
The Profit Margin of TCO0 (2.33%) is better than 71.43% of its industry peers.
In the last couple of years the Profit Margin of TCO0 has grown nicely.
TCO0's Operating Margin of 4.37% is amongst the best of the industry. TCO0 outperforms 90.48% 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 95.24% 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
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's Altman-Z score of 2.78 is in line compared to the rest of the industry. TCO0 outperforms 47.62% of 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 66.67% 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 worse Debt to Equity ratio (1.12) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.15
WACC7.63%
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 has a Current ratio of 0.64. This is amonst the worse of the industry: TCO0 underperforms 90.48% 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 47.62% 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.
TCO0 shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
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
The Earnings Per Share is expected to grow by 5.68% on average over the next years.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y4%
EPS Next 2Y7.66%
EPS Next 3Y8.38%
EPS Next 5Y5.68%
Revenue Next Year3.81%
Revenue Next 2Y3.35%
Revenue Next 3Y3.67%
Revenue Next 5Y3.34%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.63, the valuation of TCO0 can be described as correct.
TCO0's Price/Earnings ratio is in line with the industry average.
TCO0 is valuated rather cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.89 indicates a correct valuation of TCO0.
61.90% of the companies in the same industry are cheaper than TCO0, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TCO0 to the average of the S&P500 Index (34.59), we can say TCO0 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 13.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCO0 indicates a somewhat cheap valuation: TCO0 is cheaper than 61.90% of the companies listed in the same industry.
TCO0's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.68 | ||
| EV/EBITDA | 7.57 |
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)3.91
PEG (5Y)4.51
EPS Next 2Y7.66%
EPS Next 3Y8.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.00%, TCO0 has a reasonable but not impressive dividend return.
TCO0's Dividend Yield is comparable with the industry average which is at 3.89.
Compared to an average S&P500 Dividend Yield of 2.42, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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 3Y8.38%
FRA:TCO0 (11/14/2025, 7:00:00 PM)
5
-0.2 (-3.85%)
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 Cap32.44B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.07 (1.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)-2.68%
PT rev (3m)3.63%
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 | 15.63 | ||
| Fwd PE | 13.89 | ||
| P/S | 0.41 | ||
| P/FCF | 20.68 | ||
| P/OCF | 9.79 | ||
| P/B | 2.45 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)0.32
EY6.4%
EPS(NY)0.36
Fwd EY7.2%
FCF(TTM)0.24
FCFY4.83%
OCF(TTM)0.51
OCFY10.21%
SpS12.22
BVpS2.04
TBVpS1.15
PEG (NY)3.91
PEG (5Y)4.51
Graham Number3.83
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
WACC7.63%
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 3Y8.38%
EPS Next 5Y5.68%
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 3Y3.67%
Revenue Next 5Y3.34%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y20.88%
EBIT Next 5Y13.38%
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%.