Want to see TSCDY full AI Analyst Report?
Top Page
Tesco
(OTC:TSCDY)
Select Model
Select Model
Rating:71Outperform
Price Target:
$21.00
▲(13.27% Upside)
Action:Reiterated
Date:10/08/26
TSCDY scores well on improving fundamentals (steady growth, better profitability, supportive cash flow, and improving leverage) and a notably upbeat earnings call with constructive guidance and increased buybacks. Valuation is reasonable with a solid dividend yield. The main offset is mixed/weak near-term technical momentum (below short-term moving averages and negative MACD) and the inherently thin margin buffer typical of grocery.
Positive Factors
U.K. Market Share Gains
Sustained U.K. market share gains indicate Tesco is strengthening its competitive position and retaining customer demand in a highly competitive grocery market. Greater scale can support purchasing power, supplier relationships, customer data advantages, and more efficient investment over the next several quarters.
Negative Factors
Structurally Thin Grocery Margins
Tesco operates with a structurally narrow margin buffer, so relatively modest increases in costs or competitive pricing pressure can materially affect profit conversion. Even with improving earnings, the low net margin leaves less room to absorb operational setbacks and makes sustained efficiency gains important to long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
U.K. Market Share Gains
Sustained U.K. market share gains indicate Tesco is strengthening its competitive position and retaining customer demand in a highly competitive grocery market. Greater scale can support purchasing power, supplier relationships, customer data advantages, and more efficient investment over the next several quarters.
Read all positive factors
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 (TSCDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.11B
Dividend Yield2.74%
Average Volume (3M)270.61K
Price to Earnings (P/E)17.8
Beta (1Y)-0.08
Revenue Growth8.43%
EPS Growth33.48%
CountryUS
Employees342,303
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)0.90
Shares Outstanding2,077,579,000
10 Day Avg. Volume173,198
30 Day Avg. Volume270,605
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)2.72
Price to Sales (P/S)0.43
P/FCF Ratio11.20
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit9.40
Enterprise Value/Ebitda10.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)$98.99B
Tesco Business Overview & Revenue Model
Company Description
Tesco PLC, along with its various subsidiaries, operates primarily within the retail and financial services sectors. The company distributes food items through a vast network of approximately 4,752 physical stores located across the United Kingdom...
How the Company Makes Money
Tesco primarily makes money by selling goods and services through its retail network and digital channels, earning revenue at the point of sale and generating profit from the margin between merchandise sourcing costs and retail prices. Its main re...
Tesco Earnings Call Summary
Earnings Call Date:Oct 08, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Apr 14, 2027
Earnings Call Sentiment Positive
The call was strongly positive. Tesco reported broad-based sales, profit, cash flow, margin, and EPS growth, record customer satisfaction, market share gains, strong momentum in online and rapid delivery, and confidence to increase investment and shareholder returns. The main challenges were weaker U.K. convenience performance, flat Express sales, slower U.K. food growth versus a strong prior-year comparison, modest Central Europe like-for-like growth, higher promotional participation, and uncertainty around the second half. These lowlights were outweighed by the breadth of operational achievements and the reaffirmed full-year outlook.Positive Updates
Record Customer Satisfaction
Tesco achieved its highest ever customer satisfaction score, with meaningful gains across every measure, including ease, quality, value, and reward. The reported NPS was 33.
Negative Updates
U.K. Convenience Like-for-Like Decline
Total convenience like-for-like sales, including One Stop stores, declined 1.7%, largely reflecting the continued decline in the tobacco market.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Customer Satisfaction
Tesco achieved its highest ever customer satisfaction score, with meaningful gains across every measure, including ease, quality, value, and reward. The reported NPS was 33.
Read all positive updates
Company Guidance
For the full year, Tesco is on track to deliver its GBP 500 million Save to Invest target, expects capital expenditure of around GBP 1.7 billion, up from previous guidance of around GBP 1.6 billion and around GBP 200 million higher than last year, and has increased its share buyback program for the current year by GBP 200 million from GBP 750 million-GBP 950 million; group adjusted operating profits are expected to be between GBP 3.15 billion and GBP 3.3 billion, narrowing to the upper half of our previous range, while free cash flow is expected to be within the medium-term guidance range of GBP 1.5 billion-GBP 2 billion. Whoosh is on track to deliver sales in excess of half a billion pounds this year, Finest full-year sales are expected to be well over GBP 3 billion, and the framework remains modest top-line growth, 5%+ operating profit growth, and double-digit EPS growth.Tesco Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
64
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.20B | 73.29B | 69.92B | 68.19B | 65.76B | 61.34B |
| Gross Profit | 5.68B | 5.52B | 5.05B | 4.66B | 4.68B | 4.69B |
| EBITDA | 5.19B | 4.99B | 4.77B | 4.83B | 3.23B | 4.40B |
| Net Income | 1.90B | 1.78B | 1.63B | 1.19B | 737.00M | 1.48B |
Balance Sheet | ||||||
| Total Assets | 40.37B | 39.50B | 38.84B | 47.04B | 46.13B | 49.35B |
| Cash, Cash Equivalents and Short-Term Investments | 4.44B | 4.17B | 4.48B | 4.67B | 4.45B | 4.65B |
| Total Debt | 14.78B | 15.08B | 14.67B | 14.84B | 15.08B | 15.36B |
| Total Liabilities | 28.76B | 28.03B | 27.23B | 35.37B | 33.90B | 33.71B |
| Stockholders Equity | 11.61B | 11.47B | 11.67B | 11.67B | 12.24B | 15.66B |
Cash Flow | ||||||
| Free Cash Flow | 3.17B | 2.78B | 1.68B | 2.73B | 2.56B | 2.61B |
| Operating Cash Flow | 4.59B | 4.12B | 2.92B | 3.84B | 3.81B | 3.79B |
| Investing Cash Flow | -1.21B | -937.65M | -441.00M | -1.70B | -790.00M | -1.77B |
| Financing Cash Flow | -3.16B | -3.07B | -2.94B | -1.86B | -3.19B | -2.23B |
Tesco Technical Analysis
Positive
18.54
Price Trends
19.23
Positive
18.93
Positive
18.57
Positive
Market Momentum
0.77
Negative
74.98
Negative
92.79
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 18.54 is below the 20-day moving average (MA) of 19.98, below the 50-day MA of 19.23, and below the 200-day MA of 18.57, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 74.98 is Negative, neither overbought nor oversold. The STOCH value of 92.79 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $44.11B | 17.79 | 16.45% | 2.74% | 8.43% | 33.48% | |
66 Neutral | $6.15B | 12.53 | 34.84% | ― | 7.20% | 7.23% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.62B | 15.62 | 6.30% | 0.76% | 1.02% | 84.32% | |
61 Neutral | $1.92B | 19.76 | 7.15% | 1.75% | 4.50% | -3.08% | |
54 Neutral | $39.43B | 36.09 | 17.17% | 2.16% | 1.58% | -53.21% | |
54 Neutral | $6.58B | -466.00 | -2.78% | 4.72% | 2.26% | -106.73% |
* Consumer Defensive Sector Average
TSCDY
Tesco
21.37
3.58
20.10%
IMKTA
Ingles Markets
87.32
16.04
22.50%
KR
Kroger Company
66.77
0.25
0.37%
WMK
Weis Markets
77.65
13.03
20.16%
SFM
Sprouts Farmers
65.91
-40.89
-38.29%
ACI
Albertsons Companies
13.98
-3.95
-22.03%
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.