As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Tesco PLC (LON:TSCO), it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Tesco here.

Proven track record with adequate balance sheet

In the past couple of years, TSCO has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did TSCO outperformed its past performance, its growth also surpassed the Consumer Retailing industry expansion, which generated a 20% earnings growth. This is an optimistic signal for the future. TSCO’s has produced operating cash levels of 0.33x total debt over the past year, which implies that TSCO’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Debt funding requires timely payments on interest to lenders. TSCO’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.

Next Steps:

For Tesco, I’ve compiled three fundamental aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for TSCO’s future growth? Take a look at our free research report of analyst consensus for TSCO’s outlook.

2. Valuation: What is TSCO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TSCO is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TSCO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.