Tesco TSCO.L
Tesco is the largest supermarket chain in the UK, focused on food and consumer goods retail, complemented by financial services and online sales. Tesco shows moderate financial health (ND/EBITDA 2.48) and an attractive valuation (P/E 17.79, FCF yield 7.51%), with 53.7% earnings growth boosting the score, although operating margin (3.97%) and dividend yield (0.03%) are weak.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Tesco is the largest supermarket chain in the UK, focused on food and consumer goods retail, complemented by financial services and online sales. Tesco shows moderate financial health (ND/EBITDA 2.48) and an attractive valuation (P/E 17.79, FCF yield 7.51%), with 53.7% earnings growth boosting the score, although operating margin (3.97%) and dividend yield (0.03%) are weak.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.2 |
| Quality / Moat | 4.7 |
| Valuation | 7.2 |
| Growth | 7.6 |
| Dividend | 4.7 |
| Momentum | 5.0 |
| Risk & Context | 8.0 |
OVERALL SCORE: 5.9/10
Context and risks
Regulatory/competition risk in the UK supermarket sector, with pressure on prices and margins. Tesco's low operating margin (3.97%) makes it vulnerable to any additional regulation or price war.
News considered in the analysis
- Schwarz Group eyes Tesco's Czech and Slovak operations – report — Posible desinversión de operaciones en Europa Central; si se materializa, podría simplificar el grupo y liberar capital, pero es un rumor no confirmado.
- How Investors May Respond To Vontier (VNT) Winning Tesco Rollout For 700-Plus Forecourts — Noticia sobre un proveedor (Vontier), no sobre Tesco; sin impacto directo en los fundamentales de Tesco.
- Vontier (VNT), What Is Behind The Fresh Attention? — Artículo sobre Vontier, no sobre Tesco; irrelevante para el análisis.
- CFOs On the Move: Week ending Sept. 25 — Listado genérico de movimientos de CFOs; sin información específica sobre Tesco.
- Diageo brings in former Britvic, Tesco executive Joanne Wilson as CFO — Movimiento de una ex-ejecutiva de Tesco a otra empresa; sin impacto en Tesco.
Verdict: Hold; valuation is reasonable but weak margin and dividend fundamentals limit upside potential.
Main risk: The extremely low operating margin (3.97%) in a competitive and regulatory pressured UK supermarket sector, which could erode profitability if the price war intensifies.
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