TESCO PLC (TCO0.DE) Stock Fundamental Analysis
Europe - FRA:TCO0 - GB00BLGZ9862 - Common Stock
5.05 EUR
0 (0%)
We assign a fundamental rating of 5 out of 10 to TCO0. TCO0 was compared to 22 industry peers in the Consumer Staples Distribution & Retail industry. TCO0 scores excellent on profitability, 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
In the past year TCO0 was profitable.
In the past year TCO0 had a positive cash flow from operations.
Each year in the past 5 years TCO0 has been profitable.
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 68.18% 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 68.18% 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 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TCO0 is below the industry average of 9.17%.
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 77.27% of the companies in the same industry.
In the last couple of years the Profit Margin of TCO0 has grown nicely.
With an excellent Operating Margin value of 4.37%, TCO0 belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
TCO0's Operating Margin has been stable in the last couple of years.
The Gross Margin of TCO0 (7.68%) is worse than 90.91% 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
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
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 2.75. 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 of 2.75. This is comparable to the rest of the industry: TCO0 outperforms 45.45% 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.
TCO0 has a Debt to FCF ratio (10.60) which is in line with its industry peers.
TCO0 has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
TCO0 has a Debt to Equity ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 10.6 | ||
| Altman-Z | 2.75 |
ROIC/WACC1.16
WACC7.58%
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 worse Current ratio (0.64) than 86.36% 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.
TCO0 has a Quick ratio of 0.44. This is in the lower half of the industry: TCO0 underperforms 63.64% 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 16.96%, 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.
Looking at the last year, TCO0 shows a small growth in Revenue. The Revenue has grown by 3.06% in the last year.
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
TCO0 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.51% yearly.
Based on estimates for the next years, TCO0 will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y0.24%
EPS Next 2Y5.9%
EPS Next 3Y6.75%
EPS Next 5Y8.51%
Revenue Next Year3.59%
Revenue Next 2Y3.06%
Revenue Next 3Y2.85%
Revenue Next 5Y2.41%
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 15.78.
TCO0's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TCO0 is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.96, TCO0 is valued correctly.
TCO0's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, TCO0 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TCO0 is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TCO0 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.66 | ||
| EV/EBITDA | 7.32 |
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.
The decent profitability rating of TCO0 may justify a higher PE ratio.
PEG (NY)67.15
PEG (5Y)4.55
EPS Next 2Y5.9%
EPS Next 3Y6.75%
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 4.06, 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 2.38.
| 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.
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 2Y5.9%
EPS Next 3Y6.75%
FRA:TCO0 (9/17/2025, 7:00:00 PM)
5.05
0 (0%)
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 Cap32.94B
Analysts80
Price Target5.1 (0.99%)
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)2.64%
PT rev (3m)7.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.78 | ||
| Fwd PE | 15.96 | ||
| P/S | 0.41 | ||
| P/FCF | 20.66 | ||
| P/OCF | 9.78 | ||
| P/B | 2.45 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)0.32
EY6.34%
EPS(NY)0.32
Fwd EY6.26%
FCF(TTM)0.24
FCFY4.84%
OCF(TTM)0.52
OCFY10.23%
SpS12.36
BVpS2.06
TBVpS1.16
PEG (NY)67.15
PEG (5Y)4.55
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 | 2.75 |
F-Score7
WACC7.58%
ROIC/WACC1.16
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 Y0.24%
EPS Next 2Y5.9%
EPS Next 3Y6.75%
EPS Next 5Y8.51%
Revenue 1Y (TTM)3.06%
Revenue growth 3Y4.46%
Revenue growth 5Y3.78%
Sales Q2Q%2.05%
Revenue Next Year3.59%
Revenue Next 2Y3.06%
Revenue Next 3Y2.85%
Revenue Next 5Y2.41%
EBIT growth 1Y14.52%
EBIT growth 3Y4.04%
EBIT growth 5Y2.67%
EBIT Next Year53.54%
EBIT Next 3Y19.18%
EBIT Next 5Y13.17%
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%