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Tesco PLC TSCO

Morningstar Rating
GBX 327.10 +1.50 (0.46%)
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Company Report

Solid Multichannel Exposure and Focused Execution Make Tesco the Best Positioned Grocer

Tesco, the largest grocery retailer in the United Kingdom in terms of sales and store network, has successfully completed an ambitious turnaround. It has had one of the worst times in its history over the past decade, including an accounting controversy in 2014 and a subsequent decline in profits and growth owing to the advent of discounters in the U.K. food retail business.

Price vs Fair Value

TSCO is trading at a 440% premium.
Price
GBX 325.60
Fair Value
GBX 425.00
Uncertainty
Medium
1-Star Price
GBX 626.20
5-Star Price
GBX 933.80
Economic Moat
Xqn
Capital Allocation
Jkjlllxq

Bulls Say, Bears Say

Bulls

As the largest grocer in the U.K. in the online and offline channels with almost 100% coverage and a network of more than 3,500 stores, Tesco should be able to use its scale to drive results in ways subscale peers cannot.

Bears

Tesco's main U.K. and Ireland markets are highly competitive, with hard discounters expanding market share.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
GBX 325.60
Day Range
GBX 323.35328.60
52-Week Range
GBX 217.53328.60
Bid/Ask
GBX 289.00 / GBX 330.00
Market Cap
GBX 2.24 Tril
Volume/Avg
15.9 Mil / 20.7 Mil

Key Statistics

Price/Earnings (Normalized)
13.73
Price/Sales
0.34
Dividend Yield (Trailing)
3.72%
Dividend Yield (Forward)
3.72%
Total Yield
7.47%

Company Profile

Tesco is one of the largest food retailers in the world, operating thousands of stores in the United Kingdom, Ireland, and Europe. According to Kantar, Tesco is the market leader in the U.K. with a share of more than 27%, roughly double that of Asda or Sainsbury's. Tesco operates a core supermarket business in addition to convenience and neighborhood outlets. With a 35% digital market share in the U.K., the company holds a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivering industries with the landmark GBP 4 billion acquisition of Booker in 2018.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Core
Total Number of Employees
336,712

Competitors

Valuation

Metric
TSCO
CA
WMT
Price/Earnings (Normalized)
13.737.8730.06
Price/Book Value
1.950.886.91
Price/Sales
0.340.110.86
Price/Cash Flow
6.562.9316.22
Price/Earnings
TSCO
CA
WMT

Financial Strength

Metric
TSCO
CA
WMT
Quick Ratio
0.300.540.19
Current Ratio
0.810.850.80
Interest Coverage
3.472.5910.38
Quick Ratio
TSCO
CA
WMT

Profitability

Metric
TSCO
CA
WMT
Return on Assets (Normalized)
3.59%2.27%7.77%
Return on Equity (Normalized)
14.01%11.24%24.81%
Return on Invested Capital (Normalized)
7.75%5.72%14.14%
Return on Assets
TSCO
CA
WMT
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Tesco PLC ADR
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