TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.3 EUR
+0.1 (+1.92%)
Taking everything into account, TCO0 scores 4 out of 10 in our fundamental rating. TCO0 was compared to 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 is valied quite expensively at the moment, while 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.
TCO0 had positive earnings in each of the past 5 years.
Each year in the past 5 years TCO0 had a positive operating cash flow.
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.
TCO0 has a Return On Invested Capital of 8.79%. This is in the better half of the industry: TCO0 outperforms 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.40%.
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
With a decent Profit Margin value of 2.33%, TCO0 is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TCO0's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 4.37%, TCO0 belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of TCO0 has remained more or less at the same level.
The Gross Margin of TCO0 (7.68%) is worse than 95.24% 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.
The number of shares outstanding for TCO0 has been reduced compared to 5 years ago.
Compared to 1 year ago, TCO0 has a worse debt to assets ratio.
2.2 Solvency
TCO0 has an Altman-Z score of 2.79. 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.
Looking at the Altman-Z score, with a value of 2.79, TCO0 is in line with its industry, outperforming 47.62% of the companies in the same industry.
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.
Looking at the Debt to Equity ratio, with a value of 1.12, TCO0 is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.79 |
ROIC/WACC1.14
WACC7.7%
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.
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.
The Quick ratio of TCO0 (0.44) is comparable to the rest of the industry.
| 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%.
The Revenue has been growing slightly by 3.78% on average over the past years.
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 6.90% on average over the next years.
TCO0 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.76% yearly.
EPS Next Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.61%
EPS Next 5Y6.9%
Revenue Next Year3.55%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5Y2.76%
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
With a Price/Earnings ratio of 16.56, TCO0 is valued correctly.
TCO0's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.11. TCO0 is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.03, the valuation of TCO0 can be described as correct.
Based on the Price/Forward Earnings ratio, TCO0 is valued a bit more expensive than 61.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.55. TCO0 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
TCO0's Enterprise Value to EBITDA is on the same level as the industry average.
TCO0's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.92 | ||
| EV/EBITDA | 7.68 |
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)9.66
PEG (5Y)4.78
EPS Next 2Y6.54%
EPS Next 3Y7.61%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.08%, TCO0 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.89, 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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
TCO0 pays out 53.14% of its income as dividend. 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 2Y6.54%
EPS Next 3Y7.61%
FRA:TCO0 (10/31/2025, 7:00:00 PM)
5.3
+0.1 (+1.92%)
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 Cap34.38B
Revenue(TTM)71.18B
Net Income(TTM)1.63B
Analysts80
Price Target5 (-5.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
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)-2.07%
PT rev (3m)2.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.56 | ||
| Fwd PE | 15.03 | ||
| P/S | 0.43 | ||
| P/FCF | 21.92 | ||
| P/OCF | 10.37 | ||
| P/B | 2.6 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)0.32
EY6.04%
EPS(NY)0.35
Fwd EY6.65%
FCF(TTM)0.24
FCFY4.56%
OCF(TTM)0.51
OCFY9.64%
SpS12.22
BVpS2.04
TBVpS1.15
PEG (NY)9.66
PEG (5Y)4.78
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 | 2.79 |
F-Score7
WACC7.7%
ROIC/WACC1.14
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 Y1.71%
EPS Next 2Y6.54%
EPS Next 3Y7.61%
EPS Next 5Y6.9%
Revenue 1Y (TTM)3.44%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.43%
Revenue Next Year3.55%
Revenue Next 2Y3.18%
Revenue Next 3Y3.06%
Revenue Next 5Y2.76%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year55.45%
EBIT Next 3Y19.86%
EBIT Next 5Y12.9%
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 3 / 10 to TESCO PLC (TCO0.DE). This can be considered as Overvalued.
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 1.71% 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%.