With all these problems, just how will Tesco's profits grow in future? With poor growth prospects and with the shares trading on just over ten times earnings, Tesco isn't particularly cheap, and a dividend yield of 4% isn't enticing if dividends aren't going to grow much. With strong daily cash flow from its stores, Tesco won't go bust, but its finances aren't rosy either. It has sold a lot of its stores and is renting them back from property firms, meaning there is a hidden debt pile of at least £10bn to service.