Tesco PLC

Tesco is a retailer. Co. and its subsidiaries are engaged in retailing and associated activities in the U.K. and Republic of Ireland; and Czech Republic, Hungary, Poland, Slovakia, Malaysia, and Thailand. Co. provides retail banking and insurance services through Tesco Bank in the U.K. Co. sells and services of motor and home insurance policies underwritten by Tesco Underwriting Limited, or in a minority of cases by a third-party underwriter. As of Feb 25 2017, Co. had a total of 6,809 stores worldwide, including 256 franchised stores.
  • TickerTSCO
  • ISINGB0008847096
  • ExchangeLondon Stock Exchange
  • SectorFood & Drug Retailers
  • CountryUnited Kingdom

Analysts

Christian Guyot

INVEST SECURITIES - TESCO : Résultats flatteurs mais problématique complexe - NEUTRE, OC 228p (vs 213p)

ING
Job Veenendaal

Tesco/Better positioned/STABLE

Tesco reported a solid FY18/19 report card this morning, which we believe to be supportive for spreads. Most of the goals of the turnaround plan set out back in 2016 have been or will soon be achieved. Tesco's management is confident in the future and will host a capital markets day in June, when it will talk about further value unlocking opportunities. We maintain our “Stable” credit assessment.

Ioannis Pontikis

Morningstar | Tesco's Preliminary Results Reveal EBIT Beat, International Markets Ahead; Shares Fairly Valued

Tesco's 2019 preliminary results have U.K. and Ireland like-for-like sales up 2.9% (core U.K. up 1.7% like for like and Booker up 11.1%). Group EBIT growth, including Booker, was up 35% to GBP 2.21 billion. This is almost 9% higher than our full-year estimates due to better profitability in the international segment, faster Booker synergies (EUR 79 million versus EUR 60 million in our model) and cost savings delivery (GBP 532 million versus GBP 450 million in our model). Management reiterated guidance on synergies and medium-term margin targets and raised the dividend at GBX 5.77 per share, 15...

Ioannis Pontikis

Tesco's Preliminary Results Reveal EBIT Beat, International Markets Ahead; Shares Fairly Valued

Tesco's 2019 preliminary results have U.K. and Ireland like-for-like sales up 2.9% (core U.K. up 1.7% like for like and Booker up 11.1%). Group EBIT growth, including Booker, was up 35% to GBP 2.21 billion. This is almost 9% higher than our full-year estimates due to better profitability in the international segment, faster Booker synergies (EUR 79 million versus EUR 60 million in our model) and cost savings delivery (GBP 532 million versus GBP 450 million in our model). Management reiterated gu...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Tesco, Red Electrica, Elia

Tesco (TSCOLN) published its FY18/19 report card this morning, which we view as supportive for spreads. Revenue (excl. VAT, incl. fuel) came in at £63,911m. Company-compiled consensus called for £64,520m. LFL sales for the group were up 0.9% in the final quarter and 1.4% in the full year. LFL sales growth was driven solely by the UK & ROI regions (+2.9%), as the Central Europe and Asia regions recorded persistently negative growth in 2018/19 of -2.3% and -6.2% respectively. Group operating profit before exceptional items was £2,206m, set against company-compiled consensus of £2,080m. The corre...

Tesco Plc: FAQ on current market dynamics and potential for credit quality improvement

Answers to investors' most pressing questions about Tesco's potential for credit improvement in the next 12-18 months

Tesco Plc: Update following H1 fiscal 2019 results

Our credit view of Tesco Plc, reflecting our expectations of continued operating momentum and improved credit metrics.

Tesco Plc - August 2018 (LTM): Peer Snapshot

Compares key performance metrics against industry peers.

Tesco Plc: Key Facts and Statistics - Fiscal 2017-18

A summary company profile, detailing Tesco Plc’s business operations and financial highlights

Tesco Plc and Carrefour SA: Grocers Carrefour and Tesco form strategic alliance, a credit positive for them, negative for suppliers

Increased bargaining power with suppliers will help the grocers' margins and enhance their competitive position.

Christian Guyot

INVEST SECURITIES - TESCO : Résultats flatteurs mais problématique complexe - NEUTRE, OC 228p (vs 213p)

Ioannis Pontikis

Morningstar | Tesco's Preliminary Results Reveal EBIT Beat, International Markets Ahead; Shares Fairly Valued

Tesco's 2019 preliminary results have U.K. and Ireland like-for-like sales up 2.9% (core U.K. up 1.7% like for like and Booker up 11.1%). Group EBIT growth, including Booker, was up 35% to GBP 2.21 billion. This is almost 9% higher than our full-year estimates due to better profitability in the international segment, faster Booker synergies (EUR 79 million versus EUR 60 million in our model) and cost savings delivery (GBP 532 million versus GBP 450 million in our model). Management reiterated guidance on synergies and medium-term margin targets and raised the dividend at GBX 5.77 per share, 15...

Ioannis Pontikis

Tesco's Preliminary Results Reveal EBIT Beat, International Markets Ahead; Shares Fairly Valued

Tesco's 2019 preliminary results have U.K. and Ireland like-for-like sales up 2.9% (core U.K. up 1.7% like for like and Booker up 11.1%). Group EBIT growth, including Booker, was up 35% to GBP 2.21 billion. This is almost 9% higher than our full-year estimates due to better profitability in the international segment, faster Booker synergies (EUR 79 million versus EUR 60 million in our model) and cost savings delivery (GBP 532 million versus GBP 450 million in our model). Management reiterated gu...

Ioannis Pontikis

Morningstar | Ocado-M&S Joint Venture Is Latest Sign of an Ailing U.K. Grocery Industry in Need of Consolidation

On Feb. 27, Ocado and Marks & Spencer announced the creation of an equal-participation joint venture, putting an end to rumors of a potential tie-up between the two companies. The joint venture will include Ocado's U.K. grocery retail business (GBP 1.5 billion sales, 700,000 customers) and a new partnership for fulfillment and delivery services provided by the Ocado Smart Platform (management of warehouses and logistics via an annual capacity fee under a long-term contract) along with products and sourcing from M&S. M&S will pay Ocado GBP 750 million (GBP 187.5 million of which is payable afte...

Ioannis Pontikis

Ocado-M&S Joint Venture Is Latest Sign of an Ailing U.K. Grocery Industry in Need of Consolidation

On Feb. 27, Ocado and Marks & Spencer announced the creation of an equal-participation joint venture, putting an end to rumors of a potential tie-up between the two companies. The joint venture will include Ocado's U.K. grocery retail business (GBP 1.5 billion sales, 700,000 customers) and a new partnership for fulfillment and delivery services provided by the Ocado Smart Platform (management of warehouses and logistics via an annual capacity fee under a long-term contract) along with produc...

1 director maiden bought

A director at Tesco maiden bought 25,335 shares at 197p and the significance rating of the trade was 56/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board memb...

For TESCO PLC., the environment deterioration entails a downgrade to Neutral

TESCO PLC. (GB), a company active in the Food Retailers & Wholesalers industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 3 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date February 22, 2019, the closing price was GBp 222.80 and its expected value was estimated at GBp 216.24.

Tesco

Tesco

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Tesco

Tesco

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ING
Job Veenendaal

Tesco/Better positioned/STABLE

Tesco reported a solid FY18/19 report card this morning, which we believe to be supportive for spreads. Most of the goals of the turnaround plan set out back in 2016 have been or will soon be achieved. Tesco's management is confident in the future and will host a capital markets day in June, when it will talk about further value unlocking opportunities. We maintain our “Stable” credit assessment.

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Tesco, Red Electrica, Elia

Tesco (TSCOLN) published its FY18/19 report card this morning, which we view as supportive for spreads. Revenue (excl. VAT, incl. fuel) came in at £63,911m. Company-compiled consensus called for £64,520m. LFL sales for the group were up 0.9% in the final quarter and 1.4% in the full year. LFL sales growth was driven solely by the UK & ROI regions (+2.9%), as the Central Europe and Asia regions recorded persistently negative growth in 2018/19 of -2.3% and -6.2% respectively. Group operating profit before exceptional items was £2,206m, set against company-compiled consensus of £2,080m. The corre...

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Tesco, LeasePlan, Proximus, EDF and Veolia

Tesco (TSCOLN) has reported on 3Q and Christmas trading. The company reported +2.2% LFL growth over the six-week Christmas period in the UK, outpacing expectations of +1.1%, despite a ‘challenging market'. Tesco commented that it outperformed the UK market in terms of both volume and value. UK LFL growth came in at +0.7% in 3Q. CEO Dave Lewis commented that Tesco is on track to deliver on its FY plans and on the longer-term ambitions outlined in 2016. (For full stories please download the report)

ING
Hendrik Wiersma ...
  • Jeroen van den Broek
  • Job Veenendaal
  • Nadège Tillier
  • Suvi Platerink Kosonen

Coffee, Croissants & Credit/Strategy, Tesco, Snam, Akzo and Italian 5G

CSPP announced on Tuesday (for once) this week with a bumper number of c.€1.3bn for the week and buying no less than 11 ISINs they have not bought before, all of them new issues. These issues represented no less than €7bn in new eligible debt that CSPP took advantage of. The back of the envelope therefore at 10% allocation then the programme added €700m in primary, leaving €600m in secondary, a continuation of the current trend of half in primary and half in secondary. (For full story, download report)

MarketLine Department

Ocado Group Plc - Strategy, SWOT and Corporate Finance Report

Ocado Group Plc - Strategy, SWOT and Corporate Finance Report Summary Ocado Group Plc - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Ocado Group Plc (Ocado) is an independent online grocery retailer. The company offers comprehensive operating solutions for online grocery retail. Its online platform is based on its proprietary technology and intellectual proper...

MarketLine Department

Giant Eagle, Inc. - Strategy, SWOT and Corporate Finance Report

Giant Eagle, Inc. - Strategy, SWOT and Corporate Finance Report Summary Giant Eagle, Inc. - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Giant Eagle, Inc. (Giant Eagle) is a retailer of food, health care and household products. The company operates supermarkets and grocery stores under the Giant Eagle, Market District and GetGo banners. The company’s stores of...

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Metro AG - Strategy, SWOT and Corporate Finance Report

Metro AG - Strategy, SWOT and Corporate Finance Report Summary Metro AG - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights METRO AG (METRO) is a wholesale and retail operating company. It offers various food and non-food products under the METRO and Makro brand names. The company offers its products and services to hotel and restaurants, catering companies, indepe...

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BT Group plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's BT Group plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by BT Group plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key Highlight...

MarketLine Department

Carrefour SA - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Carrefour SA Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Carrefour SA since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key Highlight...

Tesco PLC – Proxinvest Corporate Governance Rating ® : B

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Proxy Report - 15/06/2018

Merger with Booker The merger with Booker has been completed. Accordingly, Charles Wilson, Booker's Chief Executive Officer and Stewart Gilliland, Booker's Chairman, joined the Combined Group's Board. Litigation The UK Serious Fraud Office has announced its intention to seek a retrial of three former Company executives for allegations of fraud and false accounting amounting to a £246 scandal. In addition, on 10 April 2017, the Company announced that its subsidiary, Tesco Stores Ltd, had obtained Court approval and entered into a Deferred Prosecution Agreement (DPA) with the UK Serious Frau...

Valérie GASTALDY

Analyse court terme - TESCO : La reprise est une consolidation.

La tendance de fond est clairement orientée à la baisse. Le MACD est négatif, il confirme cette tendance. La reprise est une consolidation qui va buter sur 223,52 p prochainement. Le prochain objectif est à 206,98 p, puis 196,85 p. Le franchissement de 242,08 p remettrait en cause la suite de la baisse.

Valérie GASTALDY

Short term view - TESCO : Rising consolidation.

The background trend is clearly bearish. The negative MACD confirms the trend. The rise is a consolidation that will soon bump against the level at 223.52 p. The next target is at 206.98 p, then 196.85 p. Passing 242.08 p would question the continuation of the fall.

Valérie GASTALDY

Short term view - TESCO : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at 206.98 p. The background trend would be questioned should prices rise above 242.08 p.

Valérie GASTALDY

Analyse court terme - TESCO : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 206,98 p. La tendance de fond serait remise en cause en cas de franchissement de 242,08 p.

Valérie GASTALDY

Medium term view - TESCO : The trend is bullish.

The trend is bullish. The recent fall is getting more vigorous. The next support is at 196.85 p. A break below 134.12 p would challenge the trend.

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