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Tesco (TSCDY)
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Tesco (TSCDY) AI Stock Analysis

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TSCDY

Tesco

(OTC:TSCDY)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$18.00
▲(3.39% 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 (TSCDY) vs. SPDR S&P 500 ETF (SPY)

Tesco Business Overview & Revenue Model

Company DescriptionTesco 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 well as through online. The company is also involved in the food and drink wholesaling activities. In addition, it offers banking and insurance services in the United Kingdom. Further, the company operates a network of one stop convenience stores; and provides data science, technology, software, and consultancy services. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.
How the Company Makes MoneyTesco 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 Key Performance Indicators (KPIs)

Any
Any
Adjusted Operating Profit by Segment
Adjusted Operating Profit by Segment
Reveals profitability across different business areas, highlighting which segments drive earnings and where operational improvements or challenges exist.
Chart InsightsTesco's UK & ROI segment shows a robust recovery, reaching new highs, indicating strong domestic performance. Central Europe is stabilizing after a dip, but remains a concern with fluctuating profits. The Asia segment remains inactive, suggesting a strategic exit or restructuring. Tesco Bank, after a volatile period, is showing signs of stabilization, though recent fluctuations suggest caution. Overall, Tesco's focus on core markets is yielding positive results, but regional disparities highlight the need for strategic adjustments.
Data provided by:Main Street Data

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
75
Positive
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
70
Positive
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
68
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue103.95B69.92B68.19B65.76B61.34B57.89B
Gross Profit7.28B5.05B4.66B4.68B4.69B3.86B
EBITDA6.89B4.77B4.83B3.23B4.40B3.10B
Net Income1.89B1.63B1.19B737.00M1.48B690.00M
Balance Sheet
Total Assets38.84B38.84B47.04B46.13B49.35B45.51B
Cash, Cash Equivalents and Short-Term Investments4.48B4.48B4.67B4.45B4.65B3.70B
Total Debt14.67B14.67B14.84B15.08B15.36B15.67B
Total Liabilities27.23B27.23B35.37B33.90B33.71B33.45B
Stockholders Equity11.67B11.67B11.67B12.24B15.66B12.08B
Cash Flow
Free Cash Flow2.59B1.68B2.73B2.56B2.61B-737.00M
Operating Cash Flow4.59B2.92B3.84B3.81B3.79B640.00M
Investing Cash Flow-714.00M-441.00M-1.70B-790.00M-1.77B6.13B
Financing Cash Flow-4.35B-2.94B-1.86B-3.19B-2.23B-7.84B

Tesco Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price17.41
Price Trends
50DMA
17.31
Positive
100DMA
16.60
Positive
200DMA
15.06
Positive
Market Momentum
MACD
0.10
Positive
RSI
46.99
Neutral
STOCH
51.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSCDY, the sentiment is Neutral. The current price of 17.41 is below the 20-day moving average (MA) of 17.73, above the 50-day MA of 17.31, and above the 200-day MA of 15.06, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 51.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$38.36B19.2415.35%2.99%
72
Outperform
$10.47B22.0835.75%16.83%52.71%
69
Neutral
$1.78B17.898.07%1.89%2.49%15.99%
68
Neutral
$44.07B17.0629.38%1.97%-2.13%3.22%
60
Neutral
$9.71B10.6829.60%3.29%1.96%-14.99%
58
Neutral
$1.59B204.290.69%8.47%-85.17%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSCDY
Tesco
17.41
3.61
26.16%
KR
Kroger Company
66.51
12.00
22.01%
WMK
Weis Markets
72.03
8.32
13.06%
SFM
Sprouts Farmers
107.16
-3.88
-3.49%
GO
Grocery Outlet Holding
16.20
<0.01
0.06%
ACI
Albertsons Companies
17.35
-0.63
-3.50%
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.Date of analysis: Jun 13, 2025