ScoreWhy is Tesco Plc ?
1
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.68
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 3.68
- The company has been able to generate a Return on Equity (avg) of 12.27% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 2.94% over the last 5 years
3
With a growth in Net Profit of 64.36%, the company declared Very Positive results in Aug 25
- DEBTORS TURNOVER RATIO(HY) Highest at 55.16 times
- RAW MATERIAL COST(Y) Fallen by -10.13% (YoY)
- DIVIDEND PER SHARE(HY) Highest at GBP 55.16
4
With ROE of 16.48%, it has a expensive valuation with a 2.77 Price to Book Value
- Over the past year, while the stock has generated a return of 45.91%, its profits have fallen by -6.7%
5
Consistent Returns over the last 3 years
- Along with generating 45.91% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Tesco Plc should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tesco Plc for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Tesco Plc
43.79%
2.43
22.07%
FTSE 100
15.58%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.94%
EBIT Growth (5y)
1.81%
EBIT to Interest (avg)
3.68
Debt to EBITDA (avg)
0.80
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
3.20
Tax Ratio
27.53%
Dividend Payout Ratio
56.78%
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
16.22%
ROE (avg)
12.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
2.77
EV to EBIT
10.83
EV to EBITDA
6.79
EV to Capital Employed
2.36
EV to Sales
0.47
PEG Ratio
NA
Dividend Yield
339.15%
ROCE (Latest)
21.83%
ROE (Latest)
16.48%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 55.16 times
RAW MATERIAL COST(Y)
Fallen by -10.13% (YoY
DIVIDEND PER SHARE(HY)
Highest at GBP 55.16
NET SALES(Q)
Highest at GBP 36,036 MM
OPERATING PROFIT(Q)
Highest at GBP 2,538 MM
PRE-TAX PROFIT(Q)
Highest at GBP 1,342 MM
NET PROFIT(Q)
Highest at GBP 976.21 MM
-2What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 95.98 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 21.92 times
Here's what is working for Tesco Plc
Debtors Turnover Ratio
Highest at 55.16 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at GBP 36,036 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (GBP MM)
Operating Profit
Highest at GBP 2,538 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 1,342 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Net Profit
Highest at GBP 976.21 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (GBP MM)
Dividend per share
Highest at GBP 55.16
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (GBP)
Raw Material Cost
Fallen by -10.13% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at GBP 918 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)
Here's what is not working for Tesco Plc
Debt-Equity Ratio
Highest at 95.98 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 21.92 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
