Loading…
UK's largest grocery retailer, operating supermarkets, convenience stores, online delivery and a banking/loyalty (Clubcard) business.
UK's largest grocery retailer, operating supermarkets, convenience stores, online delivery and a banking/loyalty (Clubcard) business.
Earns a thin margin on a vast volume of groceries and general goods, with Clubcard prices rewarding loyal shoppers while giving it data on what each household buys. Its wholesale arm Booker, bought in 2018, supplies caterers and small shops. It has pulled back to its home markets, selling its Asian and Polish operations and its retail bank to Barclays in 2024.
In one line: The UK's Kroger/Walmart-grocery equivalent.
Moat: narrow (scale, distribution, brand). Largest UK grocery scale and Clubcard loyalty data give buying-power and pricing-insight advantages.
Headquarters: Welwyn Garden City, UK · Founded: 1919 · Employees: 342,303
Size Tesco (TSCO.L) is a United Kingdom Consumer Staples company (Food Retail) with a market value of $46.2B, the 22nd largest of 363 United Kingdom companies the cockpit tracks. Shares closed at £554.00 on 6 Nov 2026.
Performance Over six months the shares gained 21.2%, against +11.1% for the median peer and +3.6% for the United Kingdom market (cap-weighted) — 2nd highest of 10 in its peer set.
Growth Revenue grew 5.4% over the last twelve months (peer median +2.8%); the operating margin is 4.3% (peer median 4.3%).
Valuation It trades at 17.5× forward earnings against a peer median of 19.4× (4th cheapest of 10).
Price implies For today's price to make sense, revenue must grow about 6% a year for seven years (Req g). Recent delivered growth is +5%, so the hurdle is +1 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 2.0 points above its cost of capital (8.9% WACC).
Credit Tesco has 12 bonds outstanding ($5.78B), rated BBB by the agencies and trading like A at a weighted spread of 100 bp.
Next results Next results expected around 14 Apr 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | £75.0B | £73.7B | £69.9B | £68.2B | £65.3B |
| Revenue growth | — | +5% | +3% | +4% | — |
| Gross profit | £5.66B | £5.35B | £5.29B | £4.78B | £4.31B |
| EBITDA | £5.17B | £5.01B | £4.83B | £4.45B | £4.10B |
| Net income | £1.90B | £1.79B | £1.65B | £1.19B | £737M |
| Free cash flow | £3.15B | £2.80B | £1.93B | £2.99B | £2.83B |
| Capital expenditure | £1.75B | £1.67B | £1.54B | £1.39B | £1.25B |
| Total debt | n/a | £15.1B | £14.7B | £14.8B | £15.1B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Tesco TSCO.L | $46.2B | +21% | +5% | 4% | 17.5× | 5.9% |
| J Sainsbury SBRY.L | $10.4B | +16% | -3% | 3% | 14.9× | 7.8% |
| Marks and Spencer MKS.L | $12.1B | +40% | +21% | 5% | 13.1× | 6.5% |
| Ocado OCDO.L | $3.73B | +77% | -42% | 3% | n/a | 39.1% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | TSCO.L | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +10.7% | +9.3% | 2nd highest of 10 |
| 6-month return | +21.2% | +11.1% | 2nd highest of 10 |
| Distance from 52-week high | -2.4% | -7.5% | 3rd highest of 10 |
| Revenue growth (TTM) | +5.4% | +2.8% | highest of 10 |
| Operating margin | 4.3% | 4.3% | 4th lowest of 10 |
| Forward P/E | 17.5× | 19.4× | 4th cheapest of 10 |
| Growth the price implies (Req g, 7 yrs) | 5.9% | -0.7% | 2nd most demanding of 10 |
| Growth delivered (Del g) | +5.0% | +4.1% | 4th highest of 10 |
| Hurdle (Req g minus delivered) | +1.0 pp | -8.0 pp | 3rd most demanding of 10 |
| ROIC minus cost of capital | +2.0 pp | +3.6 pp | 3rd lowest of 10 |
| EV / EBITDA | 8.6× | 9.0× | 5th cheapest of 10 |
| Net debt / EBITDA | 2.0× | 2.4× | 2nd least indebted of 10 |
| Bond spread | 100 bp | 110 bp | 2nd tightest of 5 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Tesco TSCO.L | United Kingdom | $46.2B | +21% | +5% | 4% | 17.5× | 5.9% | +5.0% |
| Kroger KR | United States | $40.0B | +4% | +2% | 3% | 13.1× | -6.0% | +2.2% |
| Loblaw Companies L.TO | Canada | $57.0B | +16% | +4% | 7% | 26.1× | -1.0% | +3.9% |
| Woolworths WOW.AX | Australia | $35.8B | +29% | +4% | 4% | 28.8× | 8.8% | +5.1% |
| Koninklijke Ahold Delhaize AD.AS | Netherlands | $33.3B | -6% | 0% | 4% | 12.7× | -7.0% | +4.3% |
| Seven & I 3382.T | Japan | $31.7B | +16% | -11% | 4% | 17.4× | 4.0% | +12.6% |
| George Weston WN.TO | Canada | $29.0B | +15% | +4% | 9% | 21.0× | -7.3% | +3.9% |
| Coles COL.AX | Australia | $21.0B | +7% | +3% | 4% | 24.4× | 5.5% | +3.3% |
| Metro MRU.TO | Canada | $14.6B | +11% | +3% | 6% | 19.4× | -0.7% | +4.1% |
| Uni-president Enterprises 1216.TW | Taiwan | $13.2B | +11% | +1% | 5% | 17.6× | 0.6% | +8.5% |
Tesco has 12 bonds outstanding with $5.78B face value. The agencies rate it BBB; its bonds trade like A. Weighted yield 4.87%, a spread of 100 bp over government bonds.