-0.13%
-0.16%
6.81%
13.77%
28.26%
25.13%
49.34%
AI Spotlight on TSCO
Company Description
Tesco PLC, together with its subsidiaries, engages in retailing and retail banking activities.It provides food products through approximately 4,752 stores in the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary, as well as through online.The company is also involved in the food and drink wholesaling activities.
In addition, it offers banking and insurance services in the United Kingdom.Further, the company operates a network of one stop convenience stores; and provides data science, technology, software, and consultancy services.Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.
Market Data
| Last Price | 371.7 |
| Change Percentage | -0.13% |
| Open | 369.1 |
| Previous Close | 372.2 |
| Market Cap ( Millions) | 24897 |
| Volume | 831692 |
| Year High | 375.7 |
| Year Low | 272.3 |
| M A 50 | 366.83 |
| M A 200 | 341.65 |
Financial Ratios
| FCF Yield | 9.96% |
| Dividend Yield | 3.36% |
| ROE | 11.33% |
| Debt / Equity | 126.35% |
| Net Debt / EBIDTA | 286.50% |
| Price To Book | 2.22 |
| Price Earnings Ratio | 19.52 |
| Price To FCF | 10.04 |
| Price To sales | 0.36 |
| EV / EBITDA | 8.58 |
News
- Jan -31 - Supermarket trials selling grapes with flavour and texture labels
- Jan -30 - Tesco announces 400 job cuts amid business streamlining
- Jan -29 - Tesco to axe 400 jobs across shops and head office
- Jan -29 - Tesco becomes latest UK supermarket to announce job cuts
- Jan -28 - FTSE 100 LIVE: London markets higher as Reeves meets business leaders
- Jan -28 - FTSE 100 and US stocks higher as DeepSeek concern continues
- Jan -28 - UK food prices rise at fastest rate since last April
- Jan -22 - US hedge fund fails in battle with UK investment trust
- Jan -22 - Farm tax raid has put Britain’s food security at risk, says Tesco
- Jan -22 - Best credit card deals of the week, 22 January
- Jan -18 - Tesco PLC (LON:TSCO) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
- Jan -14 - Who were the winners and losers on the high street this Christmas?
- Jan -13 - Tesco’s health insights shape retail strategies
- Jan -10 - TSCDY or WMT: Which Is the Better Value Stock Right Now?
- Jan -10 - Sainsbury’s staff set for 5% pay hike after ‘biggest ever’ Christmas
- Jan -09 - M&S vows to constrain price rises after Budget hit but warns task ‘not easy’
- Jan -09 - Tesco refuses to rule out price rises after Reeves tax raid
- Jan -09 - UK consumer confidence falters after Christmas splurge
- Jan -09 - British Retailer Shares Decline Over Growing Fears About Economy
- Jan -09 - Tesco cheers highest market share since 2016 after strong festive sales
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Retail
Expected Growth : 1.8 %
What the company do ?
Why we expect these perspectives ?
Tesco's 1.8% retail growth driven by strategic initiatives: 1) Improved customer experience through revamped store formats, 2) Enhanced online shopping capabilities, 3) Effective supply chain management, and 4) Focus on private label products, contributing to increased sales and market share.
Segment n°2 -> Tesco Bank
Expected Growth : 2.2 %
What the company do ?
Why we expect these perspectives ?
Tesco Bank's 2.2% growth driven by increasing customer base, expansion of digital banking services, and strategic partnerships. Strong brand recognition from parent company Tesco PLC contributes to customer loyalty and trust. Effective cost management and investment in technology also support growth.
Tesco Plc Products
| Product Range | What is it ? |
|---|---|
| Groceries | Tesco offers a wide range of fresh produce, meat, dairy products, bakery, and other food items for daily consumption. |
| General Merchandise | Tesco sells a variety of non-food items such as clothing, homeware, electronics, and health and beauty products. |
| Fuel | Tesco operates petrol stations across the UK, offering fuel for vehicles. |
| Tesco Bank | Tesco Bank provides a range of financial services including credit cards, loans, savings accounts, and insurance products. |
| Tesco Mobile | Tesco Mobile offers mobile phone contracts, handsets, and accessories. |
| Tesco Home Services | Tesco provides home services such as broadband, TV, and phone packages. |
| Tesco Opticians | Tesco Opticians offers eye care services, glasses, and contact lenses. |
| Tesco Pharmacy | Tesco Pharmacy provides health and wellbeing services, including prescription collection and health checks. |
Tesco PLC's Porter Forces
Threat Of Substitutes
Tesco faces moderate threat from substitutes such as online grocery shopping, discount stores, and local markets. While these alternatives are available, they do not pose a significant threat to Tesco's market share.
Bargaining Power Of Customers
Tesco's customers have high bargaining power due to the availability of alternative retailers and the ease of switching. This forces Tesco to maintain competitive prices and invest in customer loyalty programs.
Bargaining Power Of Suppliers
Tesco's suppliers have low bargaining power due to the company's large scale and market dominance. This allows Tesco to negotiate favorable prices and terms with its suppliers.
Threat Of New Entrants
The threat of new entrants is low in the UK grocery market due to high barriers to entry, including significant capital requirements and established relationships with suppliers. New entrants would struggle to compete with Tesco's scale and market presence.
Intensity Of Rivalry
The UK grocery market is highly competitive, with several major players vying for market share. Tesco faces intense rivalry from competitors such as Sainsbury's, Asda, and Morrisons, which drives prices down and forces investment in marketing and promotions.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 40.07% |
| Debt Cost | 6.52% |
| Equity Weight | 59.93% |
| Equity Cost | 6.52% |
| WACC | 6.52% |
| Leverage | 66.86% |
Tesco PLC : Quality Control
Tesco PLC passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| COLR.BR | Etn. Fr. Colruyt NV, together with its subsidiaries, engages in the retail, wholesale, food service, and other activities in Belgium, France, and internationally. It operates through three segments: Retail, Wholesale … |
| ESSITY-B.ST | Essity AB (publ) develops, produces, and sells hygiene and health products and services worldwide. It offers health and medical products, including incontinence products, wound care, compression therapy, orthopedics, skincare products, … |
| IMB.L | Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, Americas, Africa, Asia, and Australasia. It offers a range of cigarettes, fine … |
| AD.AS | Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe. Its store formats include supermarkets, convenience stores, drugstores, and hypermarkets. It also subleases … |
| CCEP.L | Coca-Cola Europacific Partners PLC, together with its subsidiaries, produces, distributes, and sells a range of non-alcoholic ready to drink beverages. The company offers flavours, mixers, and energy drinks; soft drinks, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Imperial Brands
A-Score
1-Year Total Return ->
🥈
Ahold Delhaize
A-Score
1-Year Total Return ->
🥉
Tesco
A-Score
1-Year Total Return ->
4
Essity
A-Score
1-Year Total Return ->
5
Colruyt
A-Score
1-Year Total Return ->
6
