TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.15 EUR
0 (0%)
TCO0 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 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 quite expensive at the moment. 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.
In the past 5 years TCO0 has always been profitable.
In the past 5 years TCO0 always reported a positive cash flow from operatings.
1.2 Ratios
TCO0's Return On Assets of 4.18% is fine compared to the rest of the industry. TCO0 outperforms 64.00% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.34%.
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 68.00% 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 84.00% of its industry peers.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
Looking at the Gross Margin, with a value of 7.68%, TCO0 is doing worse than 96.00% of the companies in the same industry.
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
TCO0 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TCO0 has less shares outstanding
Compared to 5 years ago, TCO0 has less shares outstanding
TCO0 has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.77 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TCO0 (2.77) is comparable to the rest of the industry.
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 72.00% 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 worse Debt to Equity ratio (1.12) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.15
WACC7.66%
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.
Looking at the Current ratio, with a value of 0.64, TCO0 is doing worse than 92.00% of the companies in the same industry.
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.
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.
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 16.09, which indicates a correct valuation of TCO0.
TCO0's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, TCO0 is valued a bit cheaper.
TCO0 is valuated correctly with a Price/Forward Earnings ratio of 14.20.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCO0 indicates a slightly more expensive valuation: TCO0 is more expensive than 60.00% of the companies listed in the same industry.
TCO0 is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.2 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCO0 indicates a slightly more expensive valuation: TCO0 is more expensive than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.04 | ||
| EV/EBITDA | 7.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)4.02
PEG (5Y)4.64
EPS Next 2Y7.66%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.80, TCO0 has a dividend in line with its industry peers.
TCO0's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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
TCO0 pays out 53.14% of its income as dividend. 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 2Y7.66%
EPS Next 3Y7.64%
FRA:TCO0 (11/28/2025, 7:00:00 PM)
5.15
0 (0%)
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 Cap33.25B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5.03 (-2.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)-1.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.25%
EPS NY rev (3m)3.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 14.2 | ||
| P/S | 0.42 | ||
| P/FCF | 21.04 | ||
| P/OCF | 9.96 | ||
| P/B | 2.49 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 7.43 |
EPS(TTM)0.32
EY6.21%
EPS(NY)0.36
Fwd EY7.04%
FCF(TTM)0.24
FCFY4.75%
OCF(TTM)0.52
OCFY10.04%
SpS12.37
BVpS2.06
TBVpS1.16
PEG (NY)4.02
PEG (5Y)4.64
Graham Number3.86
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
WACC7.66%
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%.