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Tesco

TCO0.DE
47
Grocery Stores · Consumer Defensive
Also trades as: TSCDF
Exchange
Frankfurt Stock Exchange
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Feb 28, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Strong
Dividends
Strong

Winston Score History

The full picture

Tesco is one of the largest supermarket chains in the world, selling groceries, household goods, clothing, and electronics to everyday shoppers. It operates thousands of stores across the United Kingdom and Ireland, ranging from large hypermarkets to small convenience shops under names like Tesco Express and Tesco Metro. Tesco also runs a major online grocery delivery service and owns the Booker wholesale business, which supplies restaurants and smaller retailers.

The company makes most of its money from product sales in its stores and online, with a growing slice of revenue coming from its Clubcard loyalty program and Tesco Media, which sells advertising to brands using its customer data. Tesco is the largest grocery retailer in the UK by market share, which gives it strong bargaining power with suppliers. However, it faces ongoing pressure from discount rivals like Aldi and Lidl, which continue to attract budget-conscious shoppers and could limit Tesco's ability to grow sales and protect its already thin margins.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+7.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+30.0% YoY

YoY Growth Rate

Strong earnings growth

Insider Activity

2.3%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€6.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Tesco is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
7.3%
Thin — 7.3% gross margin
Profit after running costs
Operating Margin
4.0%
Thin — 4.0% operating margin
Return on the money invested
ROCE
16.6%
Strong — 16.6% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+5.5%
Slow sales growth (+5.5% YoY)
Profit growth
EPS YoY
+12.0%
Earnings growing (+12.0% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
253%
Turns 253% of profit into real cash
Spare cash per sale
FCF Margin
4.2%
Thin free cash flow (4.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.63
Moderate — manageable debt (0.63)
Covers its interest
Interest Cover
3.74x
Tight — interest eats into profit (3.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.8x
no trend
Fair value — P/E 18.8

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+5.8
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (18.8 → 13.0)

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Dividends

Dividend
Dividend Yield
3.05%
no trend
Moderate income — 3.05% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+23.3%
no trend
Dividend growing fast (23.3% YoY)

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