Tesco (TSCDY) AI Stock Analysis

• Market Cap: $36.93B
• Dividend Yield: 3.02%
• Average Volume (3M): 37.18K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 340,000
• Sector: Consumer Defensive
• Sector Strength: 61
• Industry: Grocery Stores
• EPS (TTM): 0.49
• Shares Outstanding: 2,179,640,100
• 10 Day Avg. Volume: 32,749
• 30 Day Avg. Volume: 37,177
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 6.14
• Enterprise Value/Ebitda: 6.49
• 1Y Price Target: $18.00
• Price Target Upside: 3.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $18.00 ▲(3.57% 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 is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City, England. It operates across various sectors including grocery, clothing, electronics, and financial services, with a significant presence in the UK and international markets. Tesco is known for its supermarket chain, which offers a wide range of products from fresh food and groceries to household goods and clothing, along with online shopping and home delivery services.

How the Company Makes Money

Tesco generates revenue primarily through its retail operations, which include supermarkets, hypermarkets, and convenience stores. The company's core revenue stream comes from the sale of food and non-food products in its stores and online platforms. In addition to retail sales, Tesco earns money through its banking and financial services, including personal loans, credit cards, and insurance products. The company also benefits from various partnerships, such as its Clubcard loyalty program, which drives customer retention and increases sales. Other revenue sources include property management and the sale of data analytics services to suppliers, leveraging insights from customer purchasing behavior to enhance marketing strategies.

Tesco Financial Statement Overview

Summary

Tesco shows strong financial performance with consistent revenue growth and improving profitability. The balance sheet is stable, though leverage needs monitoring. Cash flow is solid but declining free cash flow requires attention.

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: 17.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 17.38 is above the 20-day moving average (MA) of 16.89, above the 50-day MA of 16.64, and above the 200-day MA of 14.45, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 99.84 is Negative, 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	$36.93B	18.54	15.35%	3.02%	―	―
KR	70 Outperform	$46.76B	19.22	24.06%	1.82%	-2.11%	25.03%
GO	68 Neutral	$1.79B	232.41	0.68%	―	8.47%	-85.17%
WMK	67 Neutral	$1.77B	17.78	7.86%	1.90%	2.49%	15.99%
SFM	67 Neutral	$14.39B	31.12	36.94%	―	16.83%	52.71%
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%
ACI	61 Neutral	$10.88B	11.85	31.10%	2.89%	1.96%	-14.99%