TescoMEX:TSCON 73 Gross Margin % is 7.21% as of Feb. 2026, which is 2% above its 10-year median of 7.08. GuruFocus rates MEX:TSCON with a GF Score™ of 73/100 and a GF Value™ of MXN96.52 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 305 Retail - Defensive companies, Tesco ranks worse than 89.18% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Tesco's Gross Profit for the
six
months ended in Feb. 2026 was MXN63,548 Mil. Tesco's Revenue for the
six
months ended in Feb. 2026 was MXN881,531 Mil. Therefore, Tesco's Gross Margin % for the quarter that ended in Feb. 2026 was 7.21%.
The historical rank and industry rank for Tesco's Gross Margin % or its related term are showing as below:
MEX:TSCON'
s Gross Margin % Range Over the Past 10 Years
Min: 5.15 Med: 7.08 Max: 7.55
Current: 7.51
During the past 13 years, the highestGross Margin % of Tesco was 7.55%. The lowest was 5.15%. And the median was 7.08%.
MEX:TSCON's Gross Margin % is ranked worse than 89.18% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs MEX:TSCON: 7.51
Tesco had a gross margin of 7.21% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tesco was 2.60% per year.
Tesco (MEX:TSCON) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tesco had a gross margin of 7.21% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tesco Gross Margin % Related Terms
Tesco Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tesco's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:TSCON vs KR, SFM, ACI: Gross Margin % Comparison
For the Grocery Stores subindustry, Tesco's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tesco Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tesco's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tesco (MEX:TSCON) has a Gross Margin % of 7.21% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tesco and its competitors. This is near median its historical median of 7.08. Over the past decade, Tesco's Gross Margin % has ranged from 5.15 to 7.55. According to the industry distribution chart, Tesco ranks #272 out of 305 companies in the Retail - Defensive industry, placing it in the top 89.2%.
Is Tesco's Gross Margin % too high?
Tesco's current Gross Margin % of 7.21% is near median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 5.15 to a high of 7.55. The Retail - Defensive industry median Gross Margin % is 24.14. Tesco's value of 7.21% is 70.1% below this industry median. Based on the distribution chart, Tesco ranks #272 out of 305 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Tesco has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesco's Gross Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Tesco ranks #272 out of 305 companies for Gross Margin %. This places Tesco in the lower half of its industry. The industry median Gross Margin % is 24.14. Tesco's value of 7.21% is 70.1% below this benchmark. Historically, Tesco's own Gross Margin % has ranged from 5.15 to 7.55 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 24.14, Tesco has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesco's current Gross Margin % of 7.21% is 70.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tesco and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current Gross Margin % is 7.21%, which is near median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (MEX:TSCON) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN96.52, compared to a current price of MXN109.79 — trading 13.7% above its estimated fair value. The current Gross Margin % is 7.21%, which is near median its 10-year median of 7.08 and 70.1% below the Retail - Defensive industry median of 24.14. Tesco's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tesco (MEX:TSCON), the current Gross Margin % is 7.21% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tesco (MEX:TSCON) Overvalued in 2026?
Based on GuruFocus' analysis, Tesco stock appears to be overvalued.
The current stock price of MXN109.79 is trading 13.7% above its estimated GF Value™ of MXN96.52.
GuruFocus considers Tesco to be Modestly Overvalued.
Key valuation signals for MEX:TSCON:
Gross Margin %: 7.21% (near median its 10-year median of 7.08)
GF Value™: MXN96.52 vs. price of MXN109.79 (13.7% above fair value)
Industry Position: 70.1% below the Retail - Defensive median (#272 of 305)
No single metric tells the full story. See the MEX:TSCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
73GF Score
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