TescoMEX:TSCON 73 Return-on-Tangible-Equity is 26.64% as of Feb. 2026, which is 47% above its 10-year median of 18.11. 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 300 Retail - Defensive companies, Tesco ranks better than 77.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tesco's annualized net income for the quarter that ended in Feb. 2026 was MXN39,168 Mil. Tesco's average shareholder tangible equity for the quarter that ended in Feb. 2026 was MXN147,043 Mil. Therefore, Tesco's annualized Return-on-Tangible-Equity for the quarter that ended in Feb. 2026 was 26.64%.
The historical rank and industry rank for Tesco's Return-on-Tangible-Equity or its related term are showing as below:
MEX:TSCON'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.84 Med: 18.11 Max: 85.55
Current: 28.73
During the past 13 years, Tesco's highest Return-on-Tangible-Equity was 85.55%. The lowest was -0.84%. And the median was 18.11%.
MEX:TSCON's Return-on-Tangible-Equity is ranked better than 77.33% of 300
companies
in the Retail - Defensive industry
Industry Median: 10.975
vs MEX:TSCON: 28.73
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tesco Return-on-Tangible-Equity Related Terms
Tesco Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Tesco's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Grocery Stores subindustry, Tesco's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tesco's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Feb. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.64% mean?
Tesco (MEX:TSCON) has a Return-on-Tangible-Equity of 26.64% as of Feb. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tesco and its competitors. This is 47% above median its historical median of 18.11. According to the industry distribution chart, Tesco ranks #68 out of 300 companies in the Retail - Defensive industry, placing it in the top 22.7%.
Is Tesco's Return-on-Tangible-Equity too high?
Tesco's current Return-on-Tangible-Equity of 26.64% is 47% above median its 10-year median of 18.11. The Retail - Defensive industry median Return-on-Tangible-Equity is 10.98. Tesco's value of 26.64% is 142.7% above this industry median. Based on the distribution chart, Tesco ranks #68 out of 300 companies in the Retail - Defensive industry, which is in the top quartile — a strong position 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 Return-on-Tangible-Equity compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Tesco ranks #68 out of 300 companies for Return-on-Tangible-Equity. This places Tesco in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.98. Tesco's value of 26.64% is 142.7% above this benchmark. While the company's 10-year median is 18.11 vs. the industry median of 10.98, Tesco has consistently been above 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 Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 10.98, based on 300 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tesco's current Return-on-Tangible-Equity of 26.64% is 142.7% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tesco and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 10.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current Return-on-Tangible-Equity is 26.64%, which is 47% above median its own 10-year median of 18.11. 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 Return-on-Tangible-Equity is 26.64%, which is 47% above median its 10-year median of 18.11 and 142.7% above the Retail - Defensive industry median of 10.98. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tesco (MEX:TSCON), the current Return-on-Tangible-Equity is 26.64% 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:
Return-on-Tangible-Equity: 26.64% (47% above median its 10-year median of 18.11)
GF Value™: MXN96.52 vs. price of MXN109.79 (13.7% above fair value)
Industry Position: 142.7% above the Retail - Defensive median (#68 of 300)
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
Get the complete analysis for MEX:TSCON
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