Tesco (TSCDY) AI Stock Analysis

• Market Cap: $35.34B
• Dividend Yield: 4.47%
• Average Volume (3M): 14.92K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.13
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 340,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Grocery Stores
• EPS (TTM): 0.49
• Shares Outstanding: 2,189,768,300
• 10 Day Avg. Volume: 31,199
• 30 Day Avg. Volume: 14,916
• PEG Ratio: -0.51
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $18.00
• Price Target Upside: 10.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $18.00 ▲(10.77%Upside)

Tesco's strong financial performance and robust technical indicators drive the overall score. While cash flow challenges and valuation concerns exist, they are balanced by solid market momentum and a stable financial foundation.

Tesco Business Overview & Revenue Model

Company Description

Tesco PLC (TSCDY) is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City, England. It is one of the largest retailers in the world, operating in the retail, banking, and telecommunications sectors. Tesco offers a wide range of products and services including food and beverages, clothing, electronics, financial services, and mobile and broadband services. The company operates through various store formats, such as large hypermarkets, smaller convenience stores, and online platforms, catering to diverse consumer needs.

How the Company Makes Money

Tesco makes money primarily through the sale of goods in its retail stores and online platforms. The company's key revenue streams include grocery sales, non-food items such as clothing and electronics, and services like banking and telecommunications. Tesco Bank offers financial products including insurance, loans, and credit cards, contributing to the company's income. Additionally, Tesco Mobile, a joint venture with O2, provides mobile and broadband services, further diversifying its revenue sources. Strategic partnerships, efficient supply chain management, and customer loyalty programs like Clubcard also play significant roles in driving Tesco's earnings.

Tesco Financial Statement Overview

Summary

Tesco demonstrates strong financial performance with consistent revenue growth, improving profitability, and a stable balance sheet. However, declining free cash flow poses a potential challenge.

Income Statement

Tesco's income statement shows solid revenue growth over the years, with a Total Revenue increase from 2024 to 2025 by 2.54%. The Gross Profit Margin for 2025 stands at 7.22%, indicating efficient cost management. The Net Profit Margin improved to 2.33% in 2025, reflecting enhanced profitability. EBIT and EBITDA margins are strong at 3.88% and 6.82%, respectively, demonstrating operational efficiency. Overall, Tesco is on a positive trajectory with consistent revenue growth and improving margins.

Balance Sheet

Tesco's balance sheet indicates a stable financial position with a Debt-to-Equity Ratio of 1.26, reflecting a moderate level of leverage. Return on Equity (ROE) improved to 13.94% in 2025, highlighting effective use of equity capital. The Equity Ratio is 29.98%, demonstrating a balanced capital structure. While leverage remains a potential risk, Tesco's equity base and ROE suggest strong shareholder returns.

Cash Flow

Tesco's cash flow position shows a decrease in Free Cash Flow from 2024 to 2025 by -43.65%, which could be a concern. The Operating Cash Flow to Net Income Ratio is 1.80 in 2025, indicating strong cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio dropped to 0.85, suggesting potential cash flow challenges. Overall, while Tesco generates solid operating cash, the drop in free cash flow warrants attention.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	69.92B	68.19B	65.76B	61.34B	57.89B
Gross Profit	5.05B	4.66B	4.68B	4.69B	3.86B
EBITDA	4.77B	4.83B	3.23B	4.40B	3.10B
Net Income	1.63B	1.19B	737.00M	1.48B	690.00M
Balance Sheet
Total Assets	38.84B	47.04B	46.13B	49.35B	45.51B
Cash, Cash Equivalents and Short-Term Investments	4.48B	4.67B	4.45B	4.65B	3.70B
Total Debt	14.67B	14.84B	15.08B	15.36B	15.67B
Total Liabilities	27.23B	35.37B	33.90B	33.71B	33.45B
Stockholders Equity	11.67B	11.67B	12.24B	15.66B	12.08B
Cash Flow
Free Cash Flow	1.68B	2.73B	2.56B	2.61B	-737.00M
Operating Cash Flow	2.92B	3.84B	3.81B	3.79B	640.00M
Investing Cash Flow	-441.00M	-1.70B	-790.00M	-1.77B	6.13B
Financing Cash Flow	-2.94B	-1.86B	-3.19B	-2.23B	-7.84B

Tesco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 16.25 is below the 20-day moving average (MA) of 16.33, above the 50-day MA of 15.59, and above the 200-day MA of 13.98, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 32.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSCDY.

Tesco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSCDY	73 Outperform	$35.34B	17.88	15.35%	4.47%	―	―
KR	73 Outperform	$46.66B	19.18	24.06%	1.81%	-2.11%	25.03%
SFM	72 Outperform	$15.63B	35.95	35.74%	―	15.51%	53.77%
ACI	71 Outperform	$12.49B	13.49	31.26%	2.71%	1.46%	-26.54%
WMK	69 Neutral	$2.01B	18.72	7.54%	1.82%	1.76%	6.01%
Sector *	65 Neutral	$26.92B	15.40	-4.18%	3.18%	1.01%	1.53%
GO	58 Neutral	$1.30B	78.80	1.43%	―	10.37%	-73.84%