TESCO PLC (TCO0.DE) Stock Fundamental Analysis
FRA:TCO0 - Deutsche Boerse Ag - GB00BLGZ9862 - Common Stock - Currency: EUR
Taking everything into account, TCO0 scores 5 out of 10 in our fundamental rating. TCO0 was compared to 24 industry peers in the Consumer Staples Distribution & Retail industry. TCO0 scores excellent on profitability, but there are concerns on its financial health. TCO0 is quite expensive at the moment. It does show a decent 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.
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
With a decent Return On Assets value of 4.18%, TCO0 is doing good in the industry, outperforming 62.50% 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 62.50% of the companies in the same industry.
TCO0's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. TCO0 outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.60%.
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
Looking at the Profit Margin, with a value of 2.33%, TCO0 is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
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.
TCO0's Operating Margin has been stable in the last couple of years.
The Gross Margin of TCO0 (7.68%) is worse than 95.83% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TCO0 is creating some value.
The number of shares outstanding for TCO0 has been reduced compared to 1 year ago.
TCO0 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TCO0 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.72 indicates that TCO0 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TCO0 (2.72) 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.
TCO0 has a Debt to FCF ratio (10.60) which is in line with its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that TCO0 has dependencies on debt financing.
TCO0 has a Debt to Equity ratio (1.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.17
WACC7.53%
2.3 Liquidity
A Current Ratio of 0.64 indicates that TCO0 may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.64, TCO0 is doing worse than 87.50% of the companies in the same industry.
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 doing worse than 62.50% 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 16.96% 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.
TCO0 shows a small growth in Revenue. In the last year, the Revenue has grown by 3.06%.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)16.96%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%14.44%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.32% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-0.54%
EPS Next 2Y4.93%
EPS Next 3Y5.83%
EPS Next 5Y8.32%
Revenue Next Year2.63%
Revenue Next 2Y2.56%
Revenue Next 3Y2.34%
Revenue Next 5Y2.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
TCO0 is valuated correctly with a Price/Earnings ratio of 14.69.
The rest of the industry has a similar Price/Earnings ratio as TCO0.
The average S&P500 Price/Earnings ratio is at 27.45. TCO0 is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.89, TCO0 is valued correctly.
62.50% 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 (21.90), we can say TCO0 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TCO0.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.53 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
TCO0 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.24
EPS Next 2Y4.93%
EPS Next 3Y5.83%
5. Dividend
5.1 Amount
TCO0 has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.87, TCO0 pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, TCO0 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP53.14%
EPS Next 2Y4.93%
EPS Next 3Y5.83%
FRA:TCO0 (7/4/2025, 7:00:00 PM)
4.7
-0.02 (-0.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners48.48%
Inst Owner ChangeN/A
Ins Owners1.47%
Ins Owner ChangeN/A
Market Cap31.30B
Analysts80
Price Target5 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
Yearly Dividend0.15
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)8.96%
PT rev (3m)-0.71%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.25%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.89 | ||
| P/S | 0.39 | ||
| P/FCF | 19.53 | ||
| P/OCF | 9.24 | ||
| P/B | 2.32 | ||
| P/tB | 4.11 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)0.32
EY6.81%
EPS(NY)0.32
Fwd EY6.71%
FCF(TTM)0.24
FCFY5.12%
OCF(TTM)0.51
OCFY10.82%
SpS12.16
BVpS2.03
TBVpS1.14
PEG (NY)N/A
PEG (5Y)4.24
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%
ROICexcg growth 3Y13.34%
ROICexcg 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 | 2.72 |
F-Score7
WACC7.53%
ROIC/WACC1.17
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)16.96%
EPS 3Y7.96%
EPS 5Y3.47%
EPS Q2Q%14.44%
EPS Next Y-0.54%
EPS Next 2Y4.93%
EPS Next 3Y5.83%
EPS Next 5Y8.32%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
Revenue Next Year2.63%
Revenue Next 2Y2.56%
Revenue Next 3Y2.34%
Revenue Next 5Y2.28%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year53.54%
EBIT Next 3Y18.35%
EBIT Next 5Y13.08%
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%