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TPK

Travis PerkinsLSE:TPK Stock Report

Market Cap

UK£3.2b

7D

-4.7%

1Y

-5.3%

Updated

30 Nov, 2021

Data

Company Financials +
TPK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health4/6
Dividends4/6

TPK Stock Overview

Travis Perkins plc distributes building materials to the building, construction, and home improvement markets in the United Kingdom.

Travis Perkins Competitors

Ferguson

LSE:FERG

UK£25.3b

Grafton Group

LSE:GFTU

UK£2.8b

SIG

LSE:SHI

UK£586.0m

BASF

XTRA:BAS

€53.2b

Price History & Performance

Summary of all time highs, changes and price drops for Travis Perkins
Historical stock prices
Current Share PriceUK£14.50
52 Week HighUK£19.05
52 Week LowUK£13.72
Beta1.41
1 Month Change-6.03%
3 Month Change-19.73%
1 Year Change-5.27%
3 Year Change18.40%
5 Year Change-7.90%
Change since IPO635.26%

Recent News & Updates

Oct 27
A Look At The Intrinsic Value Of Travis Perkins plc (LON:TPK)

A Look At The Intrinsic Value Of Travis Perkins plc (LON:TPK)

How far off is Travis Perkins plc ( LON:TPK ) from its intrinsic value? Using the most recent financial data, we'll...

Oct 12
Is Travis Perkins (LON:TPK) A Risky Investment?

Is Travis Perkins (LON:TPK) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 15
Here's Why We Think Travis Perkins (LON:TPK) Is Well Worth Watching

Here's Why We Think Travis Perkins (LON:TPK) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

TPKGB Trade DistributorsGB Market
7D-4.7%-2.1%-2.6%
1Y-5.3%43.6%10.9%

Return vs Industry: TPK underperformed the UK Trade Distributors industry which returned 48% over the past year.

Return vs Market: TPK underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is TPK's price volatile compared to industry and market?
TPK volatility
TPK Average Weekly Movement3.6%
Trade Distributors Industry Average Movement4.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: TPK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TPK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
179728,710Nick Robertshttps://www.travisperkinsplc.co.uk

Travis Perkins plc distributes building materials to the building, construction, and home improvement markets in the United Kingdom. It operates through four segments: Merchanting, Retail, Toolstation, and Plumbing & Heating. The Merchanting segment distributes interior building products, which include drywalls, ceilings, external envelopes, fire protection products, flooring and partitioning products, and tools and accessories to professionals within the construction industry; civil, drainage, and heavy building materials to specialist contractors and trade professionals; and pipeline and heating solutions.

Travis Perkins Fundamentals Summary

How do Travis Perkins's earnings and revenue compare to its market cap?
TPK fundamental statistics
Market CapUK£3.18b
Earnings (TTM)UK£163.20m
Revenue (TTM)UK£6.79b

19.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPK income statement (TTM)
RevenueUK£6.79b
Cost of RevenueUK£4.33b
Gross ProfitUK£2.46b
ExpensesUK£2.30b
EarningsUK£163.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 01, 2022

Earnings per share (EPS)0.74
Gross Margin36.26%
Net Profit Margin2.40%
Debt/Equity Ratio27.3%

How did TPK perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

17%

Payout Ratio

Valuation

Is Travis Perkins undervalued compared to its fair value and its price relative to the market?

19.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPK (£14.5) is trading above our estimate of fair value (£12.38)

Significantly Below Fair Value: TPK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TPK is good value based on its PE Ratio (19.5x) compared to the UK Trade Distributors industry average (24.1x).

PE vs Market: TPK is poor value based on its PE Ratio (19.5x) compared to the UK market (19x).


Price to Earnings Growth Ratio

PEG Ratio: TPK is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: TPK is good value based on its PB Ratio (1.5x) compared to the GB Trade Distributors industry average (2x).


Future Growth

How is Travis Perkins forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPK's forecast earnings growth (6.2% per year) is above the savings rate (0.9%).

Earnings vs Market: TPK's earnings (6.2% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: TPK's earnings are forecast to grow, but not significantly.

Revenue vs Market: TPK's revenue (4.4% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: TPK's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPK's Return on Equity is forecast to be low in 3 years time (11%).


Past Performance

How has Travis Perkins performed over the past 5 years?

-6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPK has a large one-off gain of £131.1M impacting its June 30 2021 financial results.

Growing Profit Margin: TPK's current net profit margins (2.4%) are higher than last year (0.5%).


Past Earnings Growth Analysis

Earnings Trend: TPK's earnings have declined by 6.5% per year over the past 5 years.

Accelerating Growth: TPK's earnings growth over the past year (558.1%) exceeds its 5-year average (-6.5% per year).

Earnings vs Industry: TPK earnings growth over the past year (558.1%) exceeded the Trade Distributors industry 44.2%.


Return on Equity

High ROE: TPK's Return on Equity (7.8%) is considered low.


Financial Health

How is Travis Perkins's financial position?


Financial Position Analysis

Short Term Liabilities: TPK's short term assets (£2.3B) exceed its short term liabilities (£1.5B).

Long Term Liabilities: TPK's short term assets (£2.3B) exceed its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: TPK's net debt to equity ratio (6.3%) is considered satisfactory.

Reducing Debt: TPK's debt to equity ratio has increased from 22.1% to 27.3% over the past 5 years.

Debt Coverage: TPK's debt is well covered by operating cash flow (67.1%).

Interest Coverage: TPK's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is Travis Perkins's current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPK's dividend (1.66%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: TPK's dividend (1.66%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


Stability and Growth of Payments

Stable Dividend: TPK's dividend payments have been volatile in the past 10 years.

Growing Dividend: TPK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17%), TPK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPK's dividends in 3 years are forecast to be well covered by earnings (39.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Nick Roberts

2.25yrs

Tenure

UK£696,000

Compensation

Mr. Nicholas John Roberts, also known as Nick, has been the Chief Executive Officer of Travis Perkins plc since August 05, 2019 and serves as its Director since July 1, 2019. Mr. Roberts served as Presiden...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD921.55K) is below average for companies of similar size in the UK market ($USD1.75M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TPK's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: TPK's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TPK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Travis Perkins plc's employee growth, exchange listings and data sources


Key Information

  • Name: Travis Perkins plc
  • Ticker: TPK
  • Exchange: LSE
  • Founded: 1797
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£3.178b
  • Shares outstanding: 219.21m
  • Website: https://www.travisperkinsplc.co.uk

Number of Employees


Location

  • Travis Perkins plc
  • Lodge Way House
  • Lodge Way
  • Northampton
  • Northamptonshire
  • NN5 7UG
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:37
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.