Tesco PLC TSCO

Morningstar Rating
GBX531.40 −4.20 (0.78%)
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Company Report

Price vs Fair Value

TSCO is trading at a LOCK|h<! premium.
Price
GBX535.60
Fair Value
LOCK|SZ
Uncertainty
rdl
1-Star Price
LOCK|Q.^X
5-Star Price
LOCK|NY
Economic Moat
LOCK|<yQ
Capital Allocation
LOCK|V^lVX?#

Bulls Say, Bears Say

Bulls

Tesco is the largest grocer in the UK, with over 4,000 stores, meaning it should be able to spread advertising and distribution costs over a larger revenue base.

Bears

Tesco's main UK and Ireland markets are highly competitive, with hard discounters taking market share.

News

Trading Information

Previous Close Price
GBX535.60
Day Range
GBX529.00–535.20
52-Week Range
GBX411.70–622.50
Bid/Ask
GBX531.40 / GBX531.60
Shares Outstanding
6.20B
Market Cap
GBX3.31T
Volume/Avg
326,187 / 15M

Key Statistics

Price/Earnings (Normalized)
17.49
Price/Sales
0.46
Dividend Yield (Trailing)
2.75%
Dividend Yield (Forward)
2.75%
Dividend Payment Schedule
Jun, Nov
Total Yield
6.70%

Company Profile

Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco’s sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury’s, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
Sector
Consumer Defensive
Industry
Grocery Stores
Stock Style Box
Large Value
Total Number of Employees
336,123

Competitors

Valuation

Metric
TSCO
SBRY
CA
Price/Earnings (Normalized)
17.4914.966.15
Price/Book Value
2.881.380.85
Price/Sales
0.460.250.12
Price/Cash Flow
8.834.573.21
Price/Earnings
TSCO
SBRY
CA

Financial Strength

Metric
TSCO
SBRY
CA
Quick Ratio
0.400.170.58
Current Ratio
0.620.590.90
Interest Coverage
4.172.692.88
Quick Ratio
TSCO
SBRY
CA

Profitability

Metric
TSCO
SBRY
CA
Return on Assets (Normalized)
5.05%—2.15%
Return on Equity (Normalized)
17.80%—10.95%
Return on Invested Capital (Normalized)
9.18%—6.37%
Return on Assets
TSCO
SBRY
CA

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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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LOCK|@%y?BsLOCK|>^$44B
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LOCK|l&>%RhBLOCK|Vl<$39B
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