Tesco PLC (TSCO) is a leading grocery stores business based in the UK. In the week up to 10 October Tesco shares surged 11.15% to a closing position of 275.6p. However, over the last 12 months, Tesco's share price has fallen by 12.43% from 271.45p (accounting for the 15 February 2021 split). Tesco is listed on the London Stock Exchange (LSE) and employs 360,000 staff. All prices are listed in pence sterling.
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Since the stock market crash that started in February 2020, Tesco's share price has had significant negative movement.
Its last market close was 267.9p, which is 17.29% down on its pre-crash value of 323.89p (accounting for the 15 February 2021 split) and 3.83% up on the lowest point reached during the March 2020 crash when the shares fell as low as 258.02p (accounting for the 15 February 2021 split).
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 £849.75.
| Open | 235.45p |
|---|---|
| High | 238.1p |
| Low | 235.0044p |
| Close | 237.7p |
| Previous close | 234.25p |
| Change | 3.45p |
| Change % | 1.4728% |
| Volume | 18,591,606 |
| 52-week range | 217.0185p - 316.9036p |
|---|---|
| 50-day moving average | 258.9528p |
| 200-day moving average | 237.7287p |
| Wall St. target price | 302.71p |
| PE ratio | 3.1667 |
| Dividend yield | 10.7p (4.02%) |
| Earnings per share (TTM) | 84.6p |
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£0 | No minimum | £0.00 £237.70 total |
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£0 | No minimum | £0.00 £237.70 total |
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£0 | £0.01 | £1.78 £239.48 total |
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£0 | £1 | £11.95 £249.65 total |
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£9.99 per month | No minimum | £7.99 £245.69 total |
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£36 per year | £20 | £9.50 £247.20 total |
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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.
Historical closes compared with the last close of 237.7p
| 1 week (2021-10-07) | -12.98% |
|---|---|
| 1 month (2021-09-17) | -7.13% |
| 3 months (2021-07-16) | 1.19% |
| 6 months (2021-04-16) | 2.52% |
| 1 year (2020-10-16) | -12.43% |
|---|---|
| 2 years (2019-10-17) | -22.65% |
| 3 years (2018-10-17) | -10.13% |
| 5 years (2016-10-17) | -6.78% |
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.
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 3x. In other words, Tesco shares trade at around 3x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-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 0.7085. A PEG ratio below 1 can be interpreted as meaning the shares are not overvalued given the current rate of growth.
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 a whopping £3.6 billion.
The EBITDA is a measure of a Tesco's overall financial performance and is widely used to measure a its profitability.
To put that into context you can compare it against similar companies.
| Revenue TTM | £59.6 billion |
|---|---|
| Operating margin TTM | 4.31% |
| Gross profit TTM | £3.2 billion |
| Return on assets TTM | 3.24% |
| Return on equity TTM | 9.04% |
| Profit margin | 10.85% |
| Book value | 1.738p |
| Market capitalisation | £20.7 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.
Tesco's total ESG risk: 16.54
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tesco's overall score of 16.54 (as at 01/01/2019) is excellent – landing it in it in the 15th 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.
Tesco's environmental score: 1.36/100
Tesco's social score: 5.97/100
Tesco's governance score: 3.72/100
Tesco's controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, 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.
Tesco PLC was last rated for ESG on: 2019-01-01.
| Total ESG score | 16.54 |
|---|---|
| Total ESG percentile | 15.28 |
| Environmental score | 1.36 |
| Social score | 5.97 |
| Governance score | 3.72 |
| Level of controversy | 3 |
Dividend yield: 4.02% of stock value
Forward annual dividend yield: 3.42% of stock value
Dividend payout ratio: 4.01% of net profits
Tesco has recently paid out dividends equivalent to 4.02% of its share value annually.
Tesco has paid out, on average, around 4.01% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.42% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 3.42% return on their shares, in the form of dividend payments. In Tesco's case, that would currently equate to about 10.7p per share.
While Tesco's payout ratio might seem low, this can signify that the company is investing more in its future growth.
The latest dividend was paid out to all shareholders who bought their shares by 14 October 2021 (the "ex-dividend date").
Tesco's dividend yield is perhaps best considered in relation to those of similar companies.
Tesco's shares were split on a 15:19 basis on 15 February 2021. So if you had owned 19 shares the day before before the split, the next day you'd have owned 15 shares. This wouldn't directly have changed the overall worth of your Tesco shares – just the quantity. However, indirectly, the new 26.7% higher 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 217.0185p up to 316.9036p. 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 0.5228. 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.
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In this guide, we've focused on Tesco's London Stock Exchange (LSE) listing. However, Tesco shares can be traded on multiple exchanges.
| Country | Exchange | Stock Code |
|---|---|---|
| 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 |
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How much can I invest?
Hi Mendel,
Thanks for reaching out to Finder.
The limit on how much you can invest in Tesco shares will depend on the platform you choose to invest with. You may want to contact the share-dealing platform and inquire with them directly.
I hope this helps.
Cheers,
Charisse