TSCO.L - Tesco PLC

LSE - LSE Delayed price. Currency in GBp
251.30
+9.50 (+3.93%)
At close: 4:36PM GMT
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Previous close241.80
Open256.30
Bid251.10 x 0
Ask251.20 x 0
Day's range240.20 - 256.30
52-week range187.05 - 293.40
Volume36,741,289
Avg. volume25,826,140
Market cap25B
Beta (5Y Monthly)0.42
PE ratio (TTM)18.75
EPS (TTM)13.40
Earnings date2 Oct 2019
Forward dividend & yield0.07 (2.79%)
Ex-dividend date2019-10-10
1y target est269.93
  • £1k to invest? I’d buy the Tesco share price ahead of Sainsbury’s
    Fool.co.uk

    £1k to invest? I’d buy the Tesco share price ahead of Sainsbury’s

    Tesco plc (LON: TSCO) has thrashed Sainsbury's plc (LON: SBRY) over the last year and Harvey Jones expects its outperformance to continue.

  • Bloomberg

    Amazon's Deliveroo Takeout Leaves an Unpleasant Taste

    (Bloomberg Opinion) -- It’s the worst nightmare of supermarkets and food delivery firms alike: Amazon.com Inc. turbocharging its grocery business with a network of couriers who can have grub on your doorstep within an hour.So you can see why Britain’s competition regulator has decided to challenge the e-commerce giant’s planned investment in Deliveroo, the U.K. rival to UberEats. The Competition and Markets Authority needs to tread carefully, though, as denying the funds to Deliveroo might inadvertently make it less able to compete in the food delivery business. That would be an unfortunate outcome.Back in May, Deliveroo announced a $575 million funding round led by Amazon. On Wednesday, the CMA determined that the investment might hurt competition in U.K. food delivery. It has given the companies five days to offer remedies, and it will launch a deeper probe if they don’t.The CMA’s concerns are warranted. While Amazon shuttered its British restaurant delivery operations last year, it remains interested in the market. The Deliveroo investment is a way of staying in the game; the American company is no doubt interested in the British business’s tens of thousands of riders. The two are also rivals in grocery deliveries, so forging a closer alliance would discourage them from competing. That’s a risk for delivery rival Ocado Group Plc and supermarket chains such as J Sainsbury Plc and Tesco Plc.A lengthy CMA investigation might be a problem, though, because of Deliveroo’s pressing capital requirements. A probe probably wouldn’t complete until the second quarter of next year, according to Bloomberg Intelligence analyst Aitor Ortiz. By then Deliveroo will have waited a year to receive its investment. If previous form is a guide, it needs that money. In 2018 Deliveroo burned through almost 200 million pounds ($263 million) of cash. If it has been spending at a similar clip this year, it might be nearing the bottom of its pile.There are plenty of remedies that might be acceptable to the CMA: An assurance from Amazon that it won’t try to buy Deliveroo for five years; a pledge not to integrate delivery services; and Amazon refraining from taking a board seat. If such concessions remove Amazon’s rationale for the investment, then it should back out. At least that would give Deliveroo an earlier opportunity to find different funding.The CMA will have one eye on what happened recently in the German food delivery market, where Takeaway.com NV acquired the local businesses of Delivery Hero SE, giving it more than 90% market share. But it can afford a degree of lenience in this case. It could still block any merger, should that materialize. Delaying Deliveroo’s access to funds would probably hold the company back in its market scrap with UberEats and Just Eat Plc.Regulators have been poor at anticipating the market-cornering impact of deals in the past, most famously Facebook Inc.’s acquisition of Instagram and Google’s $3.2 billion purchase of DoubleClick. Scrutinizing Amazon is right and proper, and a commitment not to integrate Deliveroo’s courier network would be a fair condition. But unless a full merger is on the table, the CMA mustn’t overdo things.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters - UK Focus

    LIVE MARKETS-UK election: The retail gloom before the storm

    * Asia shares fall slightly as trade deadline looms Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. With bookies giving a 75% chance of a Tory majority emerging from Thursday's election you would expect shares in British supermarkets to be looking a bit more forthcoming at the moment. "In the event of a Conservative majority government, we would expect sterling to rally", Colm Harney, a UK equity analyst at Sarasin & Partners says, adding that "as a result, large-cap UK domestically-focused names (like Tesco!) would benefit".

  • Tesco share price investors eye big payout with this news. Here’s what I’d do now
    Fool.co.uk

    Tesco share price investors eye big payout with this news. Here’s what I’d do now

    Tesco could ring up £7.2bn off the back of this news. That means a bumper Christmas payout for shareholders, so should you become one?

  • Reuters - UK Focus

    UPDATE 2-Britain's grocery sales lack Christmas spirit

    * Sales growth slows to 0.5% in 12 weeks to Dec. 1 - Kantar * Big four supermarkets all see sales declines * Discounters gain market share * Shares in Tesco, Sainsbury's and Morrisons fall (Adds detail) LONDON, Dec 10 (Reuters) - Sales growth at Britain's supermarkets slowed in the last quarter, industry data showed on Tuesday, as shoppers delayed their Christmas preparations ahead of a national election on Dec. 12. Market researcher Kantar said all of Britain's big four supermarket groups - market leader Tesco, Sainsbury's , Asda and Morrisons - recorded sales declines over the period and lost market share to the German-owned discounters Aldi and Lidl which are aggressively opening new stores.

  • Tesco shares jump on possible sale of Asian business
    Reuters

    Tesco shares jump on possible sale of Asian business

    Shares in Tesco rose more than 5% on Monday after Britain's biggest retailer said it might sell its Asian businesses, in Thailand and Malaysia, which analysts valued at up to $9 billion. Tesco said on Sunday it had begun a review of its Asian operations after receiving approaches for the businesses. Pulling out of Asia would mark a further retreat towards Tesco's core domestic market and a shift in strategy as the group had identified Thailand, where it is the market leader, as a key growth area at its Capital Markets Day in June.

  • Stocks - Canopy Growth, ArQule Rise in Premarket; Microsoft Edges Lower
    Investing.com

    Stocks - Canopy Growth, ArQule Rise in Premarket; Microsoft Edges Lower

    Investing.com -- Stocks in focus in premarket trade on Monday, 9th December.

  • Tesco Considers Sale of Asian Supermarkets in Pivot to U.K.
    Bloomberg

    Tesco Considers Sale of Asian Supermarkets in Pivot to U.K.

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Britain’s biggest supermarket chain, Tesco Plc, is considering the sale of its operations in Thailand and Malaysia as it refocuses on the domestic business amid mounting challenges in the U.K.The company is carrying out a strategic review of the businesses after receiving what it called inbound interest, according to a statement. The shares rose as much as 5.9% on Monday in London and have climbed almost 30% this year.A sale could value the operations at 6.5 billion to 7.2 billion pounds ($8.6 billion to $9.5 billion), Sanford C. Bernstein analyst Bruno Monteyne said in a note. The Thai operation is a “great quality business,” and is undervalued as part of a larger group, Monteyne said.“That in itself provides ample justification to consider a disposal, especially if there is unsolicited interest,” he said.Tesco spokesman Simon Rew declined to comment on the valuation.While a sale would mean losing the fastest-growing part of its operations, Tesco would get an infusion of cash to continue restructuring its core U.K. business that has cut thousands of jobs and shifted to new formats including checkout-free stores. It would also allow the British retailer to exit a competitive Asian region that has stymied European peers like Carrefour SA.Tesco Thailand is the biggest hypermarket chain in the country and operates 1,967 stores in total, while the Malaysian business has 74 shops. The Thai business alone could be valued at almost $7 billion because it includes real estate assets, Dow Jones reported. In the first half of fiscal-year 2020, the retailer’s entire Asia business produced 2.6 billion pounds of revenue, accounting for about 8% of total sales.While still dominant in Thailand, Tesco is grappling with challenges like chronically weak consumption trends, an increasingly stringent regulatory environment, and “formidable, well-connected competition,” said Maria Lapiz, Bangkok-based head of research at Maybank Kim Eng Securities (Thailand) Pcl.“There is no longer-term growth here, and Tesco may want to rationalize its business and raise funding in the process as well,” she said.Tesco has streamlined its domestic operations under outgoing Chief Executive Officer Dave Lewis, including pulling back from some international markets. The company is also considering a sale of its struggling Polish operations, people familiar with the situation said in September.Ken Murphy, who is set to succeed Lewis, will have to wrestle with a growing U.K. retail crisis exacerbated by Brexit, the shift to online shopping and competition from discounters Lidl and Aldi.Possible SuitorsThe U.K. company is likely to see acquisition interest from regional conglomerates who’ve had success combining local operations know-how with the cache of international brands. In Malaysia, Japanese retail giant Aeon Co. acquired Carrefour’s operations in 2012 for $276 million. A spokeswoman for Aeon declined to comment on Tesco’s business.Thai conglomerates like Central Group and the Singha Corp. are potential buyers who might be drawn to Tesco’s large retail network in the country, Lapiz said. Neither company responded to requests for comment.The review is at an early stage and no decisions concerning the Thailand or Malaysia operations have been made, Tesco said, adding that the process could end with no transaction taking place.Sime Darby, a Malaysian conglomerate, holds a 30% stake in Tesco Malaysia. When asked about Tesco’s possible exit from the country, Sime Darby said in a statement Monday that it’s continually assessing strategic options to divest non-core assets and focus on industrial and motor businesses.If a deal were to happen, Sime Darby could receive a windfall of about 1.3 billion ringgit ($282 million), based on Tesco Malaysia’s enterprise value of $2 billion, according to Ahmad Maghfur Usman, an analyst with Nomura Global Markets Research.(Updates with comment from Sime Darby in penultimate paragraph)\--With assistance from Yantoultra Ngui, Nour Al Ali, Bill Lehane, Andrew Davis, James Amott and Deirdre Hipwell.To contact the reporter on this story: Suttinee Yuvejwattana in Bangkok at suttinee1@bloomberg.netTo contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Tesco Should Take the Money and Run
    Bloomberg

    Tesco Should Take the Money and Run

    (Bloomberg Opinion) -- Selling Tesco Plc’s operations in Thailand and Malaysia for about 7 billion pounds ($9.2 billion) would be a nice parting present from outgoing Chief Executive Officer Dave Lewis to his successor Ken Murphy. But there could be a sting in the tail from such a lavish gift. Tesco would be even more focused on its home turf in the U.K., where it’s in a merciless battle with discounters from Germany.Tesco said on Sunday that it was carrying out a strategic review of the business, after receiving interest from potential buyers. Britain’s biggest supermarket is right to consider whether its remaining Asian operations might be worth more to a rival. Analysts at Bernstein estimate the Thai and Malay businesses could fetch between 6.5 billion pounds and 7.2 billion pounds. What’s more, with Bernstein estimating of typical transaction multiples in the region of about 13 times Ebitda, and Tesco currently trading on an enterprise value to Ebitda multiple of 7.6 times, then this unit isn’t being adequately reflected in Tesco’s valuation.The Asian business is a highly profitable one, with an underlying operating margin of 5.87% in the year to February 2019, close to twice that at both Tesco’s U.K. and central European divisions. Selling this arm would be a further retrenchment from Tesco’s international assault of the 1990s, and leave the company focused on its core retail operations in the U.K. as well as its bank in its home market. Its only overseas outpost would be central Europe, a business it would most likely love to sell if a buyer could be found.Tesco doesn’t need to offload assets to strengthen its balance sheet, in contrast to when it parted company with its South Korean business in 2015. It has been bringing down debt, enabling it to raise its dividend and generating hopes that it may soon begin returning cash to shareholders. A chunky price for the Thai and Malay units would make this even more likely. Indeed, the shares rose about 5% on Monday as investors salivated over a sizable buy-back or special dividend.It would also provide Murphy with a war chest to slash prices. He joins Tesco from Walgreens Boots Alliance Inc., where he spearheaded an expansion in China. However he has no direct experience of the cutthroat U.K. grocery sector.  Pricing is one area where Lewis could have done more. Although he made Tesco more competitive with its suite of cheaper exclusive brands, he could have tackled the problem earlier in his tenure.With the disposal proceeds, Murphy would be able to move quickly. He needs to. The U.K. arms of the German discounters Aldi and Lidl continue to go from strength to strength, improving their premium offerings and moving into high-margin areas for the mainstream supermarkets, such as vegan food. Being able to more effectively fight the no-frills supermarkets would be helpful to the new CEO.He would also be able to put pressure on traditional supermarket rivals, such as as J Sainsbury Plc, Wm Morrison Supermarkets Plc and Walmart Inc.’s Asda, at a time when the grocery market is sluggish. Meanwhile, some of the proceeds could be used to beef up other areas of Tesco, such as its online operations and its cash and carry arm Booker.But prices on the shelves of its domestic supermarkets are the key driver of the retailer’s fortunes. And with an attractive Thai and Malay deal, it might just be able to get them right.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • What to Watch: Tullow Oil dives as CEO quits, Just Eat takeover battle, and Tesco mulls sell-off
    Yahoo Finance UK

    What to Watch: Tullow Oil dives as CEO quits, Just Eat takeover battle, and Tesco mulls sell-off

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Reuters - UK Focus

    UPDATE 2-European shares dragged down by Tullow Oil and weak China export data

    European stocks slipped on Monday, dragged down by a slump in shares of Tullow Oil after its chief executive stepped down and the oil and gas explorer scrapped its dividend, while weak data out of China also weighed on sentiment. Shares in Tullow, which continues to face issues at its main producing assets in Ghana, hit a 19-year low following the announcements. On Monday, data from China showed exports in November shrank for the fourth straight month, the latest sign that the world's second-largest economy continues to reel from the impact of a prolonged trade war with the United States.

  • Reuters - UK Focus

    UPDATE 2-UK shares weaken, Tullow loses half its market cap

    London's exporter-heavy FTSE 100 inched lower on Monday as oil majors and Asia-exposed financials fell on China growth worries and as the pound strengthened, while a 72% slump in Tullow Oil single-handedly dragged down midcaps. The blue-chip index was gave up 0.1%, with its dollar earners including spirits company Diageo and pharmaceutical giant AstraZeneca taking a hit from gains in sterling ahead of UK general election later this week. The FTSE 250 midcap index was also down by the same level, with Tullow Oil recording its steepest one-day fall since early 2004 after the oil and gas explorer scrapped dividend and announced the exit of its CEO.

  • Tesco considers billion pound sale of 'jewel' Asian business
    Yahoo Finance UK

    Tesco considers billion pound sale of 'jewel' Asian business

    Tesco has started a review of its Malaysian and Thai businesses after receiving an unsolicited approach about a possible sale.

  • Reuters - UK Focus

    UPDATE 3-Tesco shares jump on possible sale of Asian business

    Shares in Tesco rose more than 5% on Monday after Britain's biggest retailer said it might sell its Asian businesses, in Thailand and Malaysia, which analysts valued at up to $9 billion. Tesco said on Sunday it had begun a review of its Asian operations after receiving approaches for the businesses. Pulling out of Asia would mark a further retreat towards Tesco's core domestic market and a shift in strategy as the group had identified Thailand, where it is the market leader, as a key growth area at its Capital Markets Day in June.

  • Britain's Tesco considers Asia exit
    Reuters

    Britain's Tesco considers Asia exit

    Britain's biggest retailer, Tesco, has signalled a further retreat from its once lofty global ambitions by starting a review of its remaining Asian businesses, which could result in a sale of those Thai and Malaysian operations. Celebrating its 100th anniversary, Tesco is five years into a UK-focused recovery plan launched by Chief Executive Dave Lewis after an accounting scandal capped a dramatic downturn in trading. In October Lewis declared Tesco's turnaround complete and said he would step down next summer.

  • Reuters - UK Focus

    UPDATE 2-Britain's Tesco considers Asia exit

    Britain's biggest retailer, Tesco , has signalled a further retreat from its once lofty global ambitions by starting a review of its remaining Asian businesses, which could result in a sale of those Thai and Malaysian operations. Celebrating its 100th anniversary, Tesco is five years into a UK-focused recovery plan launched by Chief Executive Dave Lewis after an accounting scandal capped a dramatic downturn in trading. In October Lewis declared Tesco's turnaround complete and said he would step down next summer.

  • What would be a smart way to invest £1,000 prior to the election?
    Fool.co.uk

    What would be a smart way to invest £1,000 prior to the election?

    Here are my picks for three buy-and-hold stocks for 2020 and possibly beyond.

  • Why I think it’s time to be greedy with the Tesco share price
    Fool.co.uk

    Why I think it’s time to be greedy with the Tesco share price

    The Tesco share price could be set to take off next year as the company's transformation plan finally starts to yield results.

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