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TSCO

TescoLSE:TSCO Stock Report

Last Price

UK£2.89

Market Cap

UK£21.9b

7D

1.3%

1Y

-5.8%

Updated

23 Jan, 2022

Data

Company Financials +
TSCO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends3/6

TSCO Stock Overview

Tesco PLC, together with its subsidiaries, engages in retailing and retail banking activities.

Tesco Competitors

Ocado Group

LSE:OCDO

UK£10.6b

J Sainsbury

LSE:SBRY

UK£6.6b

JPMorgan Chase

NYSE:JPM

US$427.1b

Philip Morris International

NYSE:PM

US$160.2b

Price History & Performance

Summary of all time highs, changes and price drops for Tesco
Historical stock prices
Current Share PriceUK£2.89
52 Week HighUK£3.18
52 Week LowUK£2.17
Beta0.58
1 Month Change0.29%
3 Month Change5.50%
1 Year Change-5.76%
3 Year Change1.36%
5 Year Change10.37%
Change since IPO194.78%

Recent News & Updates

Dec 23
Is There An Opportunity With Tesco PLC's (LON:TSCO) 49% Undervaluation?

Is There An Opportunity With Tesco PLC's (LON:TSCO) 49% Undervaluation?

Today we will run through one way of estimating the intrinsic value of Tesco PLC ( LON:TSCO ) by projecting its future...

Nov 04
Does Tesco (LON:TSCO) Have A Healthy Balance Sheet?

Does Tesco (LON:TSCO) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 02
Is Tesco PLC (LON:TSCO) Trading At A 34% Discount?

Is Tesco PLC (LON:TSCO) Trading At A 34% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Tesco PLC ( LON:TSCO...

Shareholder Returns

TSCOGB Consumer RetailingGB Market
7D1.3%-0.8%-1.3%
1Y-5.8%-22.8%7.8%

Return vs Industry: TSCO exceeded the UK Consumer Retailing industry which returned -22.8% over the past year.

Return vs Market: TSCO underperformed the UK Market which returned 7.8% over the past year.

Price Volatility

Is TSCO's price volatile compared to industry and market?
TSCO volatility
TSCO Average Weekly Movement1.8%
Consumer Retailing Industry Average Movement5.2%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: TSCO is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TSCO's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1919360,000Ken Murphyhttps://www.tescoplc.com

Tesco PLC, together with its subsidiaries, engages in retailing and retail banking activities. It provides food products in stores and online; and operates mobile virtual network. The company is also involved in the food wholesaling activities; and provision of banking, insurance, and money services.

Tesco Fundamentals Summary

How do Tesco's earnings and revenue compare to its market cap?
TSCO fundamental statistics
Market CapUK£21.92b
Earnings (TTM)UK£1.16b
Revenue (TTM)UK£59.59b

19.0x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TSCO income statement (TTM)
RevenueUK£59.59b
Cost of RevenueUK£55.18b
Gross ProfitUK£3.66b
ExpensesUK£2.51b
EarningsUK£1.16b

Last Reported Earnings

Aug 28, 2021

Next Earnings Date

Apr 13, 2022

Earnings per share (EPS)0.15
Gross Margin6.15%
Net Profit Margin1.94%
Debt/Equity Ratio55.1%

How did TSCO perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

71%

Payout Ratio

Valuation

Is Tesco undervalued compared to its fair value and its price relative to the market?

48.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TSCO (£2.89) is trading below our estimate of fair value (£5.55)

Significantly Below Fair Value: TSCO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TSCO's PE Ratio (19x) is in line with the UK Consumer Retailing industry average.

PE vs Market: TSCO is poor value based on its PE Ratio (19x) compared to the UK market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TSCO is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: TSCO is good value based on its PB Ratio (1.6x) compared to the GB Consumer Retailing industry average (2.8x).


Future Growth

How is Tesco forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSCO's forecast earnings growth (5.6% per year) is above the savings rate (0.9%).

Earnings vs Market: TSCO's earnings (5.6% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: TSCO's earnings are forecast to grow, but not significantly.

Revenue vs Market: TSCO's revenue (1.4% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: TSCO's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSCO's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has Tesco performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSCO has a large one-off loss of £721.0M impacting its August 28 2021 financial results.

Growing Profit Margin: TSCO's current net profit margins (1.9%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: TSCO has become profitable over the past 5 years, growing earnings by 17.9% per year.

Accelerating Growth: TSCO's earnings growth over the past year (38.7%) exceeds its 5-year average (17.9% per year).

Earnings vs Industry: TSCO earnings growth over the past year (38.7%) exceeded the Consumer Retailing industry 37.8%.


Return on Equity

High ROE: TSCO's Return on Equity (8.7%) is considered low.


Financial Health

How is Tesco's financial position?


Financial Position Analysis

Short Term Liabilities: TSCO's short term assets (£12.1B) do not cover its short term liabilities (£16.0B).

Long Term Liabilities: TSCO's short term assets (£12.1B) do not cover its long term liabilities (£17.8B).


Debt to Equity History and Analysis

Debt Level: TSCO's net debt to equity ratio (21%) is considered satisfactory.

Reducing Debt: TSCO's debt to equity ratio has reduced from 236.5% to 55.1% over the past 5 years.

Debt Coverage: TSCO's debt is not well covered by operating cash flow (15%).

Interest Coverage: TSCO's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is Tesco current dividend yield, its reliability and sustainability?

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TSCO's dividend (3.17%) is higher than the bottom 25% of dividend payers in the UK market (1.41%).

High Dividend: TSCO's dividend (3.17%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


Stability and Growth of Payments

Stable Dividend: TSCO's dividend payments have been volatile in the past 10 years.

Growing Dividend: TSCO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.7%), TSCO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSCO's dividends in 3 years are forecast to be covered by earnings (50.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Ken Murphy (54 yo)

1.25yrs

Tenure

UK£1,770,400

Compensation

Mr. Ken Murphy has been Group Chief Executive Officer and Executive Director of Tesco PLC since October 1, 2020. Mr. Murphy served as Joint Chief Operating Officer at Boots UK & Ireland. Mr. Murphy has dee...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD2.40M) is below average for companies of similar size in the UK market ($USD3.96M).

Compensation vs Earnings: Insufficient data to compare Ken's compensation with company performance.


Leadership Team

Experienced Management: TSCO's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: TSCO's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tesco PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Tesco PLC
  • Ticker: TSCO
  • Exchange: LSE
  • Founded: 1919
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Implied Market Cap: UK£21.923b
  • Shares outstanding: 7.59b
  • Website: https://www.tescoplc.com

Number of Employees


Location

  • Tesco PLC
  • Tesco House
  • Shire Park
  • Welwyn Garden City
  • Herefordshire
  • AL7 1GA
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 19:04
End of Day Share Price2022/01/21 00:00
Earnings2021/08/28
Annual Earnings2021/02/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.