Tesco PLC (TSCO.L) stock analysis

In our weekly check, Tesco PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Tesco PLC

Tesco PLC is a Consumer Defensive company (Grocery Stores) based in the United Kingdom, listed on LSE as TSCO.L.

What our checks show for TSCO.L

Red flags

• The net margin is only 2.4%: little room if costs rise.
• The stock has fallen as much as 72% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 9.9 years.

Warning signs

• Net debt is 2.5x a year of EBITDA (debt/equity 1.27). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 2.2% a year of growth in revenue.
• Revenue grew only 3.9% a year over the last 3 years.
• Free cash flow is only 3.8% of revenue.

Strengths

• Operating cash flow is 2.32x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.3% a year over the next years.
• Earnings per share grew 39.2% a year over the last 3 years.
• Net profit grew 34.3% a year over the last 3 years.
• The dividend takes 39% of profit: there is a cushion.
• A large company: market value $44.77 billion.

Similar companies

COL.AX · AD.AS · DNP.WA · KR · WN.TO · WOW.AX

Questions

What grade does Tesco PLC (TSCO.L) have?

In our weekly check, Tesco PLC is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TSCO.L stock?

This week's biggest flags for Tesco PLC: Thin margins, Deep past fall, Slow recovery after falls. In total 7 of 25 checks show a warning or a red flag.

What does Tesco PLC do?

Tesco PLC is a Consumer Defensive company (Grocery Stores) based in the United Kingdom, listed on LSE as TSCO.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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