LSE:TPK

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 95.79% per year

Risk Analysis

No risks detected for TPK from our risk checks.


Snowflake Analysis

Adequate balance sheet with moderate 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

Stable Share Price: TPK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

TPK

-1.3%

GB Trade Distributors

-1.9%

GB Market


1 Year Return

-17.4%

TPK

15.5%

GB Trade Distributors

-16.2%

GB Market

Return vs Industry: TPK underperformed the UK Trade Distributors industry which returned 17.5% over the past year.

Return vs Market: TPK underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

TPKIndustryMarket
7 Day0.2%-1.3%-1.9%
30 Day16.7%9.6%0.7%
90 Day2.9%11.9%-4.8%
1 Year-17.4%-17.4%17.2%15.5%-13.0%-16.2%
3 Year-12.9%-19.2%33.8%23.9%-9.4%-20.6%
5 Year-27.1%-36.0%89.4%67.8%13.5%-12.0%

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?

1.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TPK (£12.2) is trading above our estimate of fair value (£5.95)

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


Price To Earnings Ratio

PE vs Industry: TPK is unprofitable, so we can't compare its PE Ratio to the GB Trade Distributors industry average.

PE vs Market: TPK is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TPK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TPK is good value based on its PB Ratio (1.2x) compared to the GB Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Travis Perkins forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

95.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: TPK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TPK's is expected to become profitable in the next 3 years.

Revenue vs Market: TPK's revenue (5.7% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: TPK's revenue (5.7% 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 (8.3%).


Next Steps

  • Explore growth companies in the Capital Goods industry.

Past Performance

How has Travis Perkins performed over the past 5 years?

-35.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPK is currently unprofitable.

Growing Profit Margin: TPK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TPK is unprofitable, and losses have increased over the past 5 years at a rate of 35.8% per year.

Accelerating Growth: Unable to compare TPK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TPK is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-14.9%).


Return on Equity

High ROE: TPK has a negative Return on Equity (-0.084%), as it is currently unprofitable.


Next Steps

Financial Health

How is Travis Perkins's financial position?


Financial Position Analysis

Short Term Liabilities: TPK's short term assets (£2.2B) exceed its short term liabilities (£1.7B).

Long Term Liabilities: TPK's short term assets (£2.2B) exceed its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: TPK's debt to equity ratio (23.4%) is considered satisfactory.

Reducing Debt: TPK's debt to equity ratio has increased from 18.8% to 23.4% over the past 5 years.

Debt Coverage: TPK's debt is well covered by operating cash flow (109.3%).

Interest Coverage: TPK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.30%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TPK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TPK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TPK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TPK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TPK is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPK's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Nick Roberts

1.25yrs

Tenure

UK£1,884,160

Compensation

Mr. Nicholas John Roberts, also known as Nick, has been the Chief Executive Officer and Director of Travis Perkins plc since July 1, 2019. Mr. Roberts served as President of Atkins, Engineering, Design and ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.48M) is about average for companies of similar size in the UK market ($USD2.07M).

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Roberts
CEO & Director1.25yrsUK£1.88m0.0050%
£ 152.7k
Alan Williams
CFO & Executive Director3.75yrsUK£2.25m0.077%
£ 2.3m
Patrick Knight
Chief Information Officerno datano data0.0033%
£ 98.8k
Graeme Barnes
Head of Investor Relations5.67yrsno datano data
Robin Miller
Company Secretary & General Counselno datano data0.00058%
£ 17.6k
Carol Kavanagh
Group Human Resources Directorno datano data0.073%
£ 2.2m
Paul Tallentire
Chief Executive Officer of General Merchanting Division8.75yrsno datano data
Frank Elkins
Chief Operating Officer of Merchantingno datano data0.019%
£ 590.0k
Andrew Harrison
Deputy CEO of Plumbing & Heating Division3.08yrsno data0.047%
£ 1.4m
Simon King
Managing Director of Wickes8.75yrsno data0.016%
£ 485.1k
Kevin Williams
Managing Director of Direct Heating Sparesno datano datano data
Cheryl Millington
Chief Digital Officer4.75yrsno datano data

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: TPK's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Roberts
CEO & Director1.25yrsUK£1.88m0.0050%
£ 152.7k
Alan Williams
CFO & Executive Director3.75yrsUK£2.25m0.077%
£ 2.3m
John Rogers
Independent Non-Executive Director5.92yrsUK£58.00k0.0013%
£ 39.1k
Stuart Chambers
Independent Non-Executive Chairman2.92yrsUK£320.00k0.0039%
£ 118.5k
Coline McConville
Independent Non-Executive Director5.67yrsUK£75.00k0.0016%
£ 48.8k
Christopher Charles Rogers
Senior Independent Non-Executive Director4.92yrsUK£70.00k0.0036%
£ 109.4k
Peter Redfern
Senior Independent Director0.42yrUK£68.00k0.0043%
£ 131.5k
Marianne Culver
Independent Non-Executive Director0.92yrUK£10.00k0.00019%
£ 5.8k
Blair Illingworth
Independent Non-Executive Director0.92yrUK£10.00k0.00024%
£ 7.3k

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: TPK's board of directors are not considered experienced ( 2.9 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 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£3.030b
  • Shares outstanding: 248.49m
  • 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 distributes building materials to the building, construction, and home improvement markets in the United Kingdom. It operates through four segments: Merchanting, Retail, Toolstation, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:40
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.