Tesco PLC
Tesco PLC Fundamental Analysis
Tesco PLC (TCO0.DE) shows moderate financial fundamentals with a PE ratio of 20.41, profit margin of 2.14%, and ROE of 13.57%. The company generates $68.5B in annual revenue with moderate year-over-year growth of 3.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TCO0.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakTCO0.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateTCO0.DE shows balanced valuation metrics.
Growth Score
ModerateTCO0.DE shows steady but slowing expansion.
Financial Health Score
WeakTCO0.DE carries high financial risk with limited liquidity.
Profitability Score
WeakTCO0.DE struggles to sustain strong margins.
Key Financial Metrics
Is TCO0.DE Expensive or Cheap?
P/E Ratio
TCO0.DE trades at 20.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TCO0.DE's PEG of 5.61 indicates potential overvaluation.
Price to Book
The market values Tesco PLC at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.66 times EBITDA. This is generally considered low.
How Well Does TCO0.DE Make Money?
Net Profit Margin
For every $100 in sales, Tesco PLC keeps $2.14 as profit after all expenses.
Operating Margin
Core operations generate 3.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.57 in profit for every $100 of shareholder equity.
ROA
Tesco PLC generates $3.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tesco PLC generates limited operating cash flow of $3.51B, signaling weaker underlying cash strength.
Free Cash Flow
Tesco PLC produces free cash flow of $2.11B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
TCO0.DE converts 7.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TCO0.DE Stacks Against Its Sector Peers
| Metric | TCO0.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.41 | 22.46 | Neutral |
| ROE | 13.57% | 1260.00% | Weak |
| Net Margin | 2.14% | -5313.00% (disorted) | Weak |
| Debt/Equity | 1.38 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.60 | 2.49 | Weak Liquidity |
| ROA | 3.86% | -193380.00% (disorted) | Weak |
TCO0.DE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tesco PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.96%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
0.79%
Industry Style: Defensive, Dividend, Low Volatility
GrowingFCF CAGR
62.09%
Industry Style: Defensive, Dividend, Low Volatility
High Growth