Top pick for
Tesco PLC (TSCO) is a leading grocery stores business based in the UK. It opened the day at 217.1p after a previous close of 218.2p. During the day the price has varied from a low of 215p to a high of 220p. The latest price was 215p (25 minute delay). Tesco is listed on the London Stock Exchange (LSE) and employs 405,506 staff. All prices are listed in pence sterling.
Since the stock market crash in March caused by coronavirus, Tesco's share price has had significant negative movement.
Its last market close was 218.2p, which is 14.67% down on its pre-crash value of 255.7p and 7.12% up on the lowest point reached during the March crash when the shares fell as low as 203.7p.
If you had bought £1,000 worth of Tesco shares at the start of February 2020, those shares would have been worth £852.56 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £876.66.
|52-week range||203.7p - 260.4p|
|50-day moving average||207.7394p|
|200-day moving average||229.8106p|
|Wall St. target price||269.93p|
|Dividend yield||0.09p (4.2%)|
|Earnings per share (TTM)||9.9p|
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
|1 week (2020-07-29)||N/A|
|1 month (2020-07-05)||N/A|
|3 months (2020-05-07)||-9.40%|
|6 months (2020-02-05)||N/A|
|1 year (2019-08-05)||N/A|
|2 years (2018-08-05)||N/A|
|3 years (2017-08-05)||N/A|
|5 years (2015-08-05)||N/A|
Valuing Tesco stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Tesco's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Tesco's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. In other words, Tesco shares trade at around 23x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Tesco's P/E ratio is best considered in relation to those of others within the grocery stores industry or those of similar companies.
Tesco's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.5232. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Tesco's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Tesco's PEG ratio in relation to those of similar companies.
Tesco's EBITDA (earnings before interest, taxes, depreciation and amortisation) is £4.1 billion.
The EBITDA is a measure of a Tesco's overall financial performance and is widely used to measure a its profitability.
To put Tesco's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||£64.8 billion|
|Operating margin TTM||4.48%|
|Gross profit TTM||£4.3 billion|
|Return on assets TTM||3.32%|
|Return on equity TTM||7.01%|
|Market capitalisation||£21.3 billion|
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Tesco.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 16.34
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tesco's overall score of 16.34 (as at 07/01/2020) is excellent – landing it in it in the 13rd percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Tesco is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Tesco's total ESG risk score against those of similar companies.
Environmental score: 1.36/100
Social score: 6.26/100
Governance score: 3.72/100
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Tesco scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Tesco hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
|Total ESG score||16.34|
|Total ESG percentile||13.42|
|Level of controversy||3|
Dividend payout ratio: 70.75% of net profits
Recently Tesco has paid out, on average, around 70.75% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 4.2% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Tesco shareholders could enjoy a 4.2% return on their shares, in the form of dividend payments. In Tesco's case, that would currently equate to about 0.09p per share.
Tesco's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 21 May 2020 (the "ex-dividend date").
Tesco's dividend payout ratio is perhaps best considered in relation to those of similar companies.
Tesco's shares were split on a 3:1 basis on 6 July 1998. So if you had owned 1 share the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Tesco shares – just the quantity. However, indirectly, the new 66.7% lower share price could have impacted the market appetite for Tesco shares which in turn could have impacted Tesco's share price.
Over the last 12 months, Tesco's shares have ranged in value from as little as 203.7p up to 260.4p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Tesco's is 0.3843. This would suggest that Tesco's shares are less volatile than average (for this exchange).
To put Tesco's beta into context you can compare it against those of similar companies.
Tesco PLC, together with its subsidiaries, operates as a grocery retailer. The company operates through convenience and hypermarket store formats, as well as engages in the wholesale business. It also provides retail banking and insurance services. The company operates in the United Kingdom, the Republic of Ireland, the Czech Republic, Hungary, Poland, Slovakia, Malaysia, and Thailand. The company serves its customers through stores, as well as online. Tesco PLC was founded in 1919 and is headquartered in Welwyn Garden City, the United Kingdom.
In this guide, we've focused on Tesco's London Stock Exchange (LSE) listing. However, Tesco shares can be traded on multiple exchanges.
|UK||London Exchange||LSE: TSCO|
|US||US Stocks||US: TSCDY|
|US||US Stocks||US: TSCDF|
|Mexico||Mexican Exchange||MX: TSCON|
|Germany||XETRA Exchange||XETRA: TCO|
|Germany||Frankfurt Exchange||F: TCO|
|Germany||Stuttgart Exchange||STU: TCO|
|Germany||Dusseldorf Exchange||DU: TCO|
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.