Tesco PLC (TSCDY) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Tesco PLC (TSCDY) Consumer Business Overview

Tesco PLC is a multinational grocery and retail bank operating across the UK and Europe, distinguished by its extensive store network, online presence, and integrated banking services. With a market capitalization of $40.1B, Tesco maintains a 2.1% profit margin and offers a 2.91% dividend yield.

What Is the Investment Thesis for TSCDY?

Tesco PLC presents a stable investment opportunity within the consumer defensive sector, supported by its established market presence and diverse revenue streams. The company's dividend yield of 2.91% offers an attractive income component. Key value drivers include its extensive store network and growing online sales channel. Ongoing catalysts involve leveraging data science and technology to improve operational efficiency and customer experience. Potential risks include increasing competition from discount retailers and fluctuations in currency exchange rates, particularly given its international operations. With a P/E ratio of 15.9, Tesco's valuation reflects its mature business model and consistent profitability.

Based on FMP financials and quantitative analysis

TSCDY Key Highlights

• Market capitalization of $40.1B, reflecting its significant presence in the grocery retail market.
• P/E ratio of 15.9, indicating a moderate valuation relative to earnings.
• Gross margin of 7.7%, highlighting the competitive pricing environment in the grocery sector.
• Dividend yield of 2.91%, providing a steady income stream for investors.
• Beta of 0.65, suggesting lower volatility compared to the overall market.

Who Are TSCDY's Competitors?

TSCDY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are TSCDY's Key Strengths?

• Strong brand recognition and customer loyalty.
• Extensive store network and online presence.
• Diversified revenue streams from grocery retail, banking, and other services.
• Effective supply chain management.

What Are TSCDY's Weaknesses?

• Relatively low profit margins compared to other industries.
• Exposure to intense price competition in the grocery sector.
• Dependence on the UK market.
• Past accounting scandals have damaged the company's reputation.

What Could Drive TSCDY Stock Higher?

• Continued expansion of online grocery services, driving revenue growth.
• Leveraging data analytics to improve operational efficiency and personalize customer experiences.
• Growth in convenience store network, catering to busy lifestyles.
• Potential expansion of retail banking services, diversifying revenue streams.
• Possible selective expansion into new international markets with high growth potential.

What Are the Key Risks for TSCDY?

• Intense price competition in the grocery sector, impacting profit margins.
• Fluctuations in currency exchange rates, affecting the value of ADRs.
• Changes in consumer preferences, requiring adaptation and innovation.
• Economic downturns, reducing consumer spending.
• Supply chain disruptions, impacting product availability and costs.

What Are the Growth Opportunities for TSCDY?

• Expansion of Online Grocery Services: Tesco has the opportunity to further expand its online grocery services, capitalizing on the increasing demand for online shopping. The global online grocery market is projected to reach $260 billion by 2028, growing at a CAGR of 11.2%. Tesco can leverage its existing infrastructure and customer base to capture a larger share of this market.
• Leveraging Data Analytics: Tesco can utilize its vast data resources to improve operational efficiency, personalize customer experiences, and optimize pricing strategies. The market for data analytics in the retail sector is expected to reach $15 billion by 2025. By investing in data analytics capabilities, Tesco can gain a competitive edge and drive revenue growth.
• Growth in Convenience Stores: Tesco's network of One-Stop convenience stores offers a significant growth opportunity. The convenience store market is driven by busy lifestyles and the demand for quick and easy shopping solutions. Tesco can expand its convenience store network in strategic locations to cater to this growing demand.
• Expansion of Retail Banking Services: Tesco Bank offers an opportunity to diversify revenue streams and enhance customer loyalty. By expanding its range of financial products and services, Tesco can attract new customers and increase cross-selling opportunities. The retail banking market is expected to grow at a CAGR of 3.5% over the next five years.
• International Expansion: While Tesco has scaled back its international operations in recent years, there may be opportunities to selectively expand into new markets with high growth potential. Emerging markets with a growing middle class and increasing urbanization offer attractive opportunities for expansion. However, Tesco must carefully assess the risks and challenges associated with entering new markets.

What Opportunities Does TSCDY Have?

• Expansion of online grocery services.
• Leveraging data analytics to improve operational efficiency and customer experience.
• Growth in convenience stores.
• Expansion of retail banking services.

What Threats Does TSCDY Face?

• Increasing competition from discount retailers.
• Fluctuations in currency exchange rates.
• Changes in consumer preferences.
• Economic downturns.

What Are TSCDY's Competitive Advantages?

• Scale: Tesco's large store network and online presence provide a significant scale advantage.
• Brand Recognition: Tesco is a well-known and trusted brand in the UK and Europe.
• Customer Loyalty: Tesco's Clubcard loyalty program helps to retain customers and drive repeat purchases.
• Integrated Business Model: Tesco's combination of grocery retail, banking, and other services provides a diversified revenue stream and enhances customer loyalty.

What Does TSCDY Do?

Founded in 1919, Tesco PLC has grown from a market stall in London's East End to become one of the world's leading retailers. The company operates approximately 4,752 stores across the United Kingdom, Republic of Ireland, the Czech Republic, Slovakia, and Hungary, as well as a robust online platform. Tesco's core business is providing food products, but it has diversified into retail banking and insurance services in the UK. The company also engages in food and drink wholesaling activities. Tesco operates a network of One-Stop convenience stores, catering to immediate consumer needs. Furthermore, Tesco provides data science, technology, software, and consultancy services, leveraging its vast operational data. Headquartered in Welwyn Garden City, UK, Tesco continues to adapt to changing consumer preferences and technological advancements, maintaining its competitive position through innovation and customer-centric strategies.

What Products and Services Does TSCDY Offer?

• Operates a network of grocery stores across the UK and Europe.
• Provides online grocery shopping services.
• Offers retail banking and insurance services in the UK.
• Engages in food and drink wholesaling activities.
• Operates a network of One-Stop convenience stores.
• Provides data science, technology, software, and consultancy services.

How Does TSCDY Make Money?

• Generates revenue from the sale of food products and other merchandise in its stores and online.
• Earns income from retail banking and insurance services.
• Derives revenue from food and drink wholesaling activities.
• Provides data science, technology, software, and consultancy services to other businesses.

What Industry Does TSCDY Operate In?

Tesco PLC operates in the highly competitive grocery retail industry, characterized by thin margins and intense price competition. The industry is undergoing significant transformation, driven by the growth of online grocery shopping and the increasing popularity of discount retailers. Tesco competes with traditional supermarkets, convenience stores, and online retailers. The company's scale and brand recognition provide a competitive advantage, but it must continuously adapt to changing consumer preferences and technological advancements to maintain its market share.

Who Are TSCDY's Key Customers?

• Individual consumers shopping for groceries and household goods.
• Businesses purchasing food and drink products through wholesale channels.
• Customers using Tesco's retail banking and insurance services.
• Businesses seeking data science, technology, software, and consultancy services.

F-Score 8/9Financial Health

Tesco PLC's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.81 places it in the safe zone, indicating low near-term bankruptcy risk.

ROE 16%Key Financial Metrics

Return on equity for Tesco PLC stands at 16.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.5%, showing how much profit it generates from its asset base. TSCDY trades at a trailing price-to-earnings ratio of 15.92, below the Consumer Defensive sector average of ~28x. Its free cash flow yield is 9.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.59 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.9%, the inverse of the P/E and a quick read on earnings relative to price.

Tesco PLC (TSCDY) Valuation Context

Valued at $40.1B, TSCDY is classified as a large-cap stock. Relative to its peer group, TSCDY's quantitative score of 46/100 is roughly in line with the peer average of 48/100.

FY2026 estForward Outlook

Wall Street analysts project Tesco PLC revenue of about $72.20B for fiscal 2026, with EPS near $0.85. The estimate reflects 7 contributing analysts.

TSCDY Financials

TSCDY Latest News

TSCDY Analyst Consensus

TSCDY MoonshotScore

What Investors Ask About Tesco PLC (TSCDY) — Consumer Defensive

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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