LSE:TPK

Stock Analysis Report

Executive Summary

Travis Perkins plc supplies building and home improvement products in the United Kingdom.

Snowflake

Fundamentals

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Travis Perkins's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

TPK

0.3%

GB Trade Distributors

0.08%

GB Market


1 Year Return

40.9%

TPK

8.7%

GB Trade Distributors

3.5%

GB Market

Return vs Industry: TPK exceeded the UK Trade Distributors industry which returned 8.7% over the past year.

Return vs Market: TPK exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

TPKIndustryMarket
7 Day1.4%0.3%0.08%
30 Day9.1%1.0%-1.3%
90 Day8.6%1.6%-2.2%
1 Year45.9%40.9%13.4%8.7%9.0%3.5%
3 Year22.6%10.4%43.0%29.8%18.1%3.1%
5 Year5.7%-9.1%81.2%57.4%36.2%5.3%

Price Volatility Vs. Market

How volatile is Travis Perkins's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

49.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPK (£14.77) is trading above our estimate of fair value (£13.88)

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


Price To Earnings Ratio

PE vs Industry: TPK is poor value based on its PE Ratio (49.7x) compared to the Trade Distributors industry average (15.8x).

PE vs Market: TPK is poor value based on its PE Ratio (49.7x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: TPK is poor value based on its PEG Ratio (1.3x)


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 (1.9x).


Next Steps

Future Growth

How is Travis Perkins forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

37.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPK's forecast earnings growth (37.1% per year) is above the savings rate (1.2%).

Earnings vs Market: TPK's earnings (37.1% per year) are forecast to grow faster than the UK market (12.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TPK's revenue (5.6% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: TPK's revenue (5.6% 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 (9.9%).


Next Steps

Past Performance

How has Travis Perkins performed over the past 5 years?

-46.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TPK's earnings have declined by -46.1% per year over the past 5 years.

Accelerating Growth: TPK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TPK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (3.4%).


Return on Equity

High ROE: TPK's Return on Equity (3%) is considered low.


Return on Assets

ROA vs Industry: TPK's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: TPK is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Travis Perkins's financial position?


Financial Position Analysis

Short Term Liabilities: TPK's short term assets (£2.6B) exceeds its short term liabilities (£2.0B)

Long Term Liabilities: TPK's short term assets (2.6B) exceeds its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: TPK's debt to equity ratio (23.2%) is considered satisfactory

Reducing Debt: TPK's debt to equity ratio has increased from 14.3% to 23.2% over the past 5 years.

Debt Coverage: TPK's debt is well covered by operating cash flow (51.9%).

Interest Coverage: Insufficient data to determine if TPK's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: TPK has a high level of physical assets or inventory.

Debt Coverage by Assets: TPK's debt is covered by short term assets (assets are 4.480280x debt).


Next Steps

Dividend

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

3.18%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.5%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TPK's dividend (3.18%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: TPK's dividend (3.18%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: Whilst dividend payments have been stable, TPK has been paying a dividend for less than 10 years.

Growing Dividend: TPK's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (158.1%), TPK's dividend payments are not 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 (39.2% payout ratio).


Next Steps

Management

What is the CEO of Travis Perkins's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Nick Roberts 0

0.3yrs

Tenure

0

Mr. Nicholas Roberts, also known as Nick, has been Chief Executive Officer and Director of Travis Perkins plc since 2019. Mr. Roberts served as President of Atkins, Engineering, Design and Project Manageme ...


Management Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

Experienced Management: TPK's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

55yo

Average Age

Experienced Board: TPK's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£91601 Oct 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares70
Max PriceUK£13.09
BuyUK£89001 Oct 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares68
Max PriceUK£13.09
BuyUK£3,50701 Oct 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares268
Max PriceUK£13.09
BuyUK£57601 Oct 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares44
Max PriceUK£13.09
BuyUK£87701 Oct 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares67
Max PriceUK£13.09
BuyUK£81101 Oct 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares62
Max PriceUK£13.09
SellUK£39,15011 Sep 19
Frank Elkins
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of Merchanting
Shares3,000
Max PriceUK£13.05
BuyUK£80904 Sep 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares65
Max PriceUK£12.44
BuyUK£87104 Sep 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares70
Max PriceUK£12.44
BuyUK£89604 Sep 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares72
Max PriceUK£12.44
BuyUK£3,50804 Sep 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares282
Max PriceUK£12.44
BuyUK£57204 Sep 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares46
Max PriceUK£12.44
BuyUK£93304 Sep 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares75
Max PriceUK£12.44
SellUK£110,46701 Aug 19
Andrew Harrison
EntityIndividual
Role
Senior Key Executive
Deputy CEO of Plumbing & Heating Division
Shares8,000
Max PriceUK£13.81
BuyUK£81001 Aug 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares60
Max PriceUK£13.49
BuyUK£87701 Aug 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares65
Max PriceUK£13.49
BuyUK£89101 Aug 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares66
Max PriceUK£13.49
BuyUK£3,49501 Aug 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares259
Max PriceUK£13.49
BuyUK£58001 Aug 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares43
Max PriceUK£13.49
BuyUK£91801 Aug 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares68
Max PriceUK£13.49
BuyUK£92502 Jul 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares71
Max PriceUK£13.03
BuyUK£86002 Jul 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares66
Max PriceUK£13.03
BuyUK£88602 Jul 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares68
Max PriceUK£13.03
BuyUK£3,50602 Jul 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares269
Max PriceUK£13.03
BuyUK£57302 Jul 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares44
Max PriceUK£13.03
BuyUK£80802 Jul 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares62
Max PriceUK£13.03
BuyUK£56403 Jun 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares46
Max PriceUK£12.26
BuyUK£80903 Jun 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares66
Max PriceUK£12.26
BuyUK£88203 Jun 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares72
Max PriceUK£12.26
BuyUK£89503 Jun 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares73
Max PriceUK£12.26
BuyUK£3,50503 Jun 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares286
Max PriceUK£12.26
BuyUK£91903 Jun 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares75
Max PriceUK£12.26
BuyUK£57602 May 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares41
Max PriceUK£14.05
BuyUK£92702 May 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares66
Max PriceUK£14.05
BuyUK£81502 May 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares58
Max PriceUK£14.05
BuyUK£87102 May 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares62
Max PriceUK£14.05
BuyUK£89902 May 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares64
Max PriceUK£14.05
BuyUK£3,56802 May 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares254
Max PriceUK£14.05
BuyUK£92302 Apr 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares67
Max PriceUK£13.77
BuyUK£89502 Apr 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares65
Max PriceUK£13.77
BuyUK£3,49802 Apr 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares254
Max PriceUK£13.77
BuyUK£60602 Apr 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares44
Max PriceUK£13.77
BuyUK£86802 Apr 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares63
Max PriceUK£13.77
BuyUK£79902 Apr 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares58
Max PriceUK£13.77
SellUK£287,20004 Mar 19
Carol Kavanagh
EntityIndividual
Role
Head of Human Resources
Group Human Resources Director
Shares20,000
Max PriceUK£14.36
BuyUK£81204 Mar 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares56
Max PriceUK£14.50
BuyUK£87004 Mar 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares60
Max PriceUK£14.50
BuyUK£88404 Mar 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares61
Max PriceUK£14.50
BuyUK£3,50904 Mar 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares242
Max PriceUK£14.50
BuyUK£59404 Mar 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares41
Max PriceUK£14.50
BuyUK£92804 Mar 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares64
Max PriceUK£14.50
BuyUK£89001 Feb 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares72
Max PriceUK£12.35
BuyUK£80301 Feb 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares65
Max PriceUK£12.35
BuyUK£80301 Feb 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares65
Max PriceUK£12.35
BuyUK£60501 Feb 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares49
Max PriceUK£12.35
BuyUK£3,49601 Feb 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares283
Max PriceUK£12.35
BuyUK£91401 Feb 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares74
Max PriceUK£12.35
BuyUK£92902 Jan 19
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares88
Max PriceUK£10.55
BuyUK£79102 Jan 19
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares75
Max PriceUK£10.55
BuyUK£89702 Jan 19
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares85
Max PriceUK£10.55
BuyUK£3,50302 Jan 19
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares332
Max PriceUK£10.55
BuyUK£60102 Jan 19
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares57
Max PriceUK£10.55
BuyUK£81202 Jan 19
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares77
Max PriceUK£10.55
SellUK£164,32505 Dec 18
Carol Kavanagh
EntityIndividual
Role
Head of Human Resources
Group Human Resources Director
Shares15,000
Max PriceUK£10.96
BuyUK£92403 Dec 18
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares84
Max PriceUK£11.00
BuyUK£81403 Dec 18
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares74
Max PriceUK£11.00
BuyUK£80303 Dec 18
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares73
Max PriceUK£11.00
BuyUK£89103 Dec 18
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares81
Max PriceUK£11.00
BuyUK£3,50803 Dec 18
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares319
Max PriceUK£11.00
BuyUK£60503 Dec 18
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares55
Max PriceUK£11.00
BuyUK£3,50401 Nov 18
Stuart Chambers
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares319
Max PriceUK£10.99
BuyUK£92301 Nov 18
Ruth Anderson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares84
Max PriceUK£10.99
BuyUK£80201 Nov 18
Peter Redfern
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares73
Max PriceUK£10.99
BuyUK£79101 Nov 18
Christopher Charles Rogers
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares72
Max PriceUK£10.99
BuyUK£89001 Nov 18
Coline McConville
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares81
Max PriceUK£10.99
BuyUK£60401 Nov 18
John Rogers
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares55
Max PriceUK£10.99

Ownership Breakdown


Management Team

  • Paul Tallentire (56yo)

    Chief Executive Officer of General Merchanting Division

    • Tenure: 7.8yrs
  • Frank Elkins (52yo)

    Chief Operating Officer of Merchanting

    • Tenure: 0yrs
  • Robin Miller (48yo)

    Company Secretary & General Counsel

    • Tenure: 0yrs
  • Carol Kavanagh (56yo)

    Group Human Resources Director

    • Tenure: 0yrs
  • Simon King

    Managing Director of Wickes

    • Tenure: 7.8yrs
  • Andy Harrison (62yo)

    Deputy CEO of Plumbing & Heating Division

    • Tenure: 2.1yrs
  • Alan Williams (50yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.18m
  • Graeme Barnes

    Head of Investor Relations

    • Tenure: 4.7yrs
  • Nick Roberts

    CEO & Director

    • Tenure: 0.3yrs
  • Patrick Knight

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • John Rogers (50yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£58.00k
  • Stuart Chambers (63yo)

    Non-Executive Chairman

    • Tenure: 1.9yrs
    • Compensation: UK£320.00k
  • Coline McConville (55yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£75.00k
  • Chris Rogers (59yo)

    Senior Independent Director

    • Tenure: 3.9yrs
    • Compensation: UK£70.00k
  • Pete Redfern (47yo)

    Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£68.00k
  • Ruth Anderson (65yo)

    Non-Executive Director

    • Tenure: 8yrs
    • Compensation: UK£75.00k
  • Alan Williams (50yo)

    CFO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.18m
  • Nick Roberts

    CEO & Director

    • Tenure: 0.3yrs

Company Information

Travis Perkins plc's company bio, 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£3.661b
  • Shares outstanding: 247.93m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TVPK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
TPKLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
LFPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
TPKLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
TPRK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2011

Biography

Travis Perkins plc supplies building and home improvement products in the United Kingdom. The company’s General Merchanting division supplies products for various types of repair, maintenance, and improvem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:34
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.