🛒 Tesco PLC: Britain’s Retail Titan
Tesco is the UK’s largest supermarket chain, with operations spanning grocery, wholesale, banking, and online retail. It holds a commanding 28% market share in the UK and continues to expand its Tesco Finest and Clubcard loyalty programmes to retain customers.
📈 Share Price & Market Performance
- Current Share Price: 431.50p
- 52-Week Range: 310.30p – 431.60p
- Market Capitalisation: ~£31 billion
- 1-Year Return: +23.6%
- 5-Year Return: +97.6%
Tesco recently hit a 52-week high, reflecting strong investor sentiment and solid trading performance.
💰 Valuation Metrics
| Metric | Value | Commentary |
|---|---|---|
| P/E Ratio | ~13.9 | Reasonably priced for a mature retailer |
| PEG Ratio | ~1.20 | Suggests valuation is fairly aligned with growth expectations |
💸 Dividend Profile
- Dividend Yield: ~4.1%
- Buyback Programme: £1.45 billion (ongoing through April 2026)
- Free Cash Flow Guidance: £1.4–1.8 billion (medium-term range)
Tesco continues to reward shareholders through generous dividends and buybacks, supported by strong cash generation.
📊 Trading Update (Q1 FY26)
- Like-for-Like Sales: +4.6% YoY to £16.4 billion
- UK Market Share: Up 0.44 percentage points to 28.0%
- Booker Wholesale: +2.0% LFL growth despite tobacco headwinds
- Operating Profit Guidance: £2.7–3.0 billion (unchanged)
Tesco’s multi-format strategy and price-matching initiatives (e.g. ALDI Match) continue to drive customer loyalty and margin stability.
