# Tesco PLC (TSCO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Food & Staples Retailing. Price 480p, market value 29.9 billionp.

## Valuation
- **P/E (trailing): 17.8×** (5-yr avg 1829.6×, 3-yr avg 1687.1×). Tesco PLC trades at 17.8× trailing earnings, well below its own five-year average of 1829.6×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 14.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.82**. A PEG of 0.82 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.2×**. Each dollar of revenue is priced at 0.2×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.7×**. The shares trade at 2.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.6×**. Enterprise value is 4.6× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 14.6%** (5-yr avg 0.1%). Free cash flow equals 14.6% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.6%**. The inverse of the P/E: 5.6% of the price is earned each year.

## Profitability
- **Gross margin: 7.6%**. Tesco PLC keeps 7.6% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 4.0%**. 4.0% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.4%**. 2.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.6%**. 15.6% on shareholders' equity is solid.
- **Return on invested capital: 19.1%**. Return on all capital, debt included, is 19.1%: comfortably above what that capital costs.
- **Return on assets: 8.6%**. Each dollar of assets produces 8.6% of profit.

## Growth
- **Revenue growth (1 yr): 5.4%** (3-yr 3.9%/yr, 5-yr 5.0%/yr). Revenue grew 5.4% over the last year, against 5.0% a year compounded over five years.
- **EPS growth (1 yr): 17.4%** (3-yr 39.6%/yr, 5-yr 24.4%/yr). Earnings per share rose 17.4%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 3.1%/yr**. Free cash flow has compounded at 3.1% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.32**. Debt is 1.32 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.2×**. It would take 1.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.7×**. Operating profit covers interest 3.7× over, a safe margin.
- **Current ratio: 0.59** (quick 0.39). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.99**. A Z-score of 2.99 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.05%** (0p per share, trailing). Tesco PLC yields 3.05%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 52%** (41% of free cash flow). 52% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Dividend growth (5 yr): 3.0%/yr** (1-yr 14.0%). The dividend has grown 3.0% a year over five years.
- **Shareholder yield: 11.8%**. Dividends plus net buybacks return 11.8% of the market value a year.

## Price and momentum
- **Total return (1 yr): 8.4%** (YTD 7.6%, 3-mo 4.6%). The shares are up 8.4% over twelve months including dividends.
- **From 52-week high: -6.0%** (16.5% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 59**. An RSI of 59 is neutral.
- **Beta (1 yr): 0.60** (volatility 23%). Beta of 0.60 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=TSCO.L · Page: https://foliofundamentals.com/stocks/tsco.l

Not investment advice.