Tesco (TSCDY)
OTHER OTC:TSCDY
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Tesco
(OTC:TSCDY)
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Rating:74Outperform
Price Target:
$22.00
▲(22.29% Upside)
Action:ReiteratedDate:10/09/25
Tesco's overall stock score is driven by strong financial performance and positive technical indicators. The earnings call provided a boost with its positive outlook, despite some challenges. Valuation concerns slightly dampen the score, but the company's strategic initiatives and market position remain strong.
Positive Factors
UK Market Share Leadership
Sustained UK market share above 28% provides durable scale advantages: stronger supplier negotiating power, higher store traffic and merchandising leverage. This structural position supports stable revenue and resilience to competition, underpinning medium-term margin and cash generation.
Negative Factors
Sharp Free Cash Flow Decline
A near 44% drop in free cash flow materially reduces financial flexibility to fund capex, deleveraging, or buybacks. Even with solid operating cash conversion, the FCF-to-net-income decline signals structural working-capital or investment timing pressures that could constrain strategic options over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
UK Market Share Leadership
Sustained UK market share above 28% provides durable scale advantages: stronger supplier negotiating power, higher store traffic and merchandising leverage. This structural position supports stable revenue and resilience to competition, underpinning medium-term margin and cash generation.
Read all positive factors
Tesco (TSCDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.35B
Dividend Yield3.08%
Average Volume (3M)42.99K
Price to Earnings (P/E)7.4
Beta (1Y)0.07
Revenue Growth4.52%
EPS Growth-17.11%
CountryUS
Employees340,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.62
Shares Outstanding2,128,394,300
10 Day Avg. Volume0
30 Day Avg. Volume42,989
Financial Highlights & Ratios
PEG Ratio-4.04
Price to Book (P/B)2.25
Price to Sales (P/S)0.38
P/FCF Ratio15.67
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit8.44
Enterprise Value/Ebitda9.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.26
Revenue Forecast (FY)$99.74B
Tesco Business Overview & Revenue Model
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 w...
How the Company Makes Money
Tesco makes money primarily by selling goods to consumers through its retail network and digital channels. The largest revenue stream is retail sales from grocery and everyday products sold in-store (superstores, supermarkets, convenience formats)...
Tesco Key Performance Indicators (KPIs)
Any
Adjusted Operating Profit by Segment
Reveals profitability across different business areas, highlighting which segments drive earnings and where operational improvements or challenges exist.
Reveals profitability across different business areas, highlighting which segments drive earnings and where operational improvements or challenges exist.
Data provided by:
The Fly
The FlyTesco Earnings Call Summary
Earnings Call Date:Oct 02, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue growth, market share gains, and enhanced customer engagement. However, challenges such as increased net debt and operating cost pressures were noted.Positive Updates
Overall Revenue Growth
Group sales grew by 5.1% with growth in all operating segments, and adjusted operating profit increased by 1.6%.
Negative Updates
Net Debt Increase
Net debt was GBP 9.88 billion at the end of the half, an increase of GBP 430 million versus year-end.
Read all updates
Q2-2026 Updates
Positive
Negative
Overall Revenue Growth
Group sales grew by 5.1% with growth in all operating segments, and adjusted operating profit increased by 1.6%.
Read all positive updates
Company Guidance
In the recent call, the company reported a solid financial performance for the first half of the fiscal year 2026, driven by strategic investments and customer satisfaction. Group sales increased by 5.1%, with a 4.3% rise in like-for-like sales and a 1.6% increase in adjusted operating profit. The company highlighted its robust market share gains, with the U.K. market share now exceeding 28%. Notably, the company has seen a 16% year-on-year growth in its Finest range, marking three consecutive years of double-digit growth. The Net Promoter Score reached its highest level in six years, reflecting improved customer satisfaction. Furthermore, the company reported a free cash flow of GBP 1.3 billion and adjusted its full-year group adjusted operating profit guidance to a range of GBP 2.9 billion to GBP 3.1 billion. Investments in value, quality, and service, alongside a focus on price competitiveness, have been key drivers of their performance.Tesco Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.18B | 69.92B | 68.19B | 65.76B | 61.34B | 57.89B |
| Gross Profit | 5.15B | 5.05B | 4.66B | 4.68B | 4.69B | 3.86B |
| EBITDA | 4.76B | 4.77B | 4.83B | 3.23B | 4.40B | 3.10B |
| Net Income | 1.52B | 1.63B | 1.19B | 737.00M | 1.48B | 690.00M |
Balance Sheet | ||||||
| Total Assets | 39.51B | 38.84B | 47.04B | 46.13B | 49.35B | 45.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.59B | 4.48B | 4.67B | 4.45B | 4.65B | 3.70B |
| Total Debt | 14.97B | 14.67B | 14.84B | 15.08B | 15.36B | 15.67B |
| Total Liabilities | 28.71B | 27.23B | 35.37B | 33.90B | 33.71B | 33.45B |
| Stockholders Equity | 10.81B | 11.67B | 11.67B | 12.24B | 15.66B | 12.08B |
Cash Flow | ||||||
| Free Cash Flow | 2.51B | 1.68B | 2.73B | 2.56B | 2.61B | -737.00M |
| Operating Cash Flow | 4.07B | 2.92B | 3.84B | 3.81B | 3.79B | 640.00M |
| Investing Cash Flow | -1.71B | -441.00M | -1.70B | -790.00M | -1.77B | 6.13B |
| Financing Cash Flow | -3.68B | -2.94B | -1.86B | -3.19B | -2.23B | -7.84B |
Tesco Technical Analysis
Positive
17.99
Price Trends
18.95
Positive
18.27
Positive
17.75
Positive
Market Momentum
0.07
Negative
59.83
Neutral
91.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSCDY, the sentiment is Positive. The current price of 17.99 is below the 20-day moving average (MA) of 18.95, below the 50-day MA of 18.95, and above the 200-day MA of 17.75, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSCDY.
Tesco Risk Analysis
Tesco disclosed 15 risk factors in its most recent earnings report. Tesco reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tesco Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $41.35B | 7.42 | 13.57% | 3.08% | 4.52% | -17.11% | |
65 Neutral | $7.16B | 15.05 | 38.21% | ― | 16.60% | 49.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $9.10B | 8.31 | 28.54% | 3.49% | 2.08% | -1.63% | |
58 Neutral | $1.80B | 17.84 | 6.83% | 2.06% | 3.11% | 6.54% | |
55 Neutral | $43.47B | 40.33 | 13.04% | 2.15% | -1.77% | -70.83% | |
46 Neutral | $696.89M | ― | -19.78% | ― | 7.22% | -108.99% |
* Consumer Defensive Sector Average
TSCDY
Tesco
19.59
7.24
58.66%
KR
Kroger Company
70.96
6.45
10.00%
WMK
Weis Markets
72.58
-6.51
-8.23%
SFM
Sprouts Farmers
75.75
-77.91
-50.70%
GO
Grocery Outlet Holding
7.10
-6.76
-48.77%
ACI
Albertsons Companies
17.71
-2.95
-14.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.