LSE:TPT

Stock Analysis Report

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Executive Summary

Topps Tiles Plc engages in the retail and wholesale distribution of ceramic and porcelain tiles, natural stone, and related products for homeowners and tile fitters in the United Kingdom. More Details


Snowflake Analysis

Imperfect balance sheet with poor track record.


Similar Companies

Share Price & News

How has Topps Tiles's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.1%

TPT

1.6%

GB Specialty Retail

-1.0%

GB Market


1 Year Return

-36.1%

TPT

5.4%

GB Specialty Retail

-14.8%

GB Market

Return vs Industry: TPT underperformed the UK Specialty Retail industry which returned 5.4% over the past year.

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


Shareholder returns

TPTIndustryMarket
7 Day-7.1%1.6%-1.0%
30 Day2.9%9.4%-1.6%
90 Day12.2%24.7%-3.6%
1 Year-34.1%-36.1%6.2%5.4%-11.6%-14.8%
3 Year-24.9%-33.8%14.5%5.6%-8.9%-20.2%
5 Year-61.9%-68.5%-0.7%-14.0%16.2%-10.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Topps Tiles undervalued compared to its fair value and its price relative to the market?

34.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPT (£0.46) is trading above our estimate of fair value (£0.13)

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


Price To Earnings Ratio

PE vs Industry: TPT is poor value based on its PE Ratio (34.6x) compared to the GB Specialty Retail industry average (25.6x).

PE vs Market: TPT is poor value based on its PE Ratio (34.6x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TPT is overvalued based on its PB Ratio (3.7x) compared to the GB Specialty Retail industry average (1.2x).


Next Steps

Future Growth

How is Topps Tiles forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TPT's forecast earnings growth is above the savings rate (1.2%).

Earnings vs Market: Insufficient data to determine if TPT's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: TPT's revenue (2.9% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: TPT's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TPT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Topps Tiles performed over the past 5 years?

-14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPT has high quality earnings.

Growing Profit Margin: TPT's current net profit margins (1.2%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: TPT's earnings have declined by 14.9% per year over the past 5 years.

Accelerating Growth: TPT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TPT had negative earnings growth (-69.4%) over the past year, making it difficult to compare to the Specialty Retail industry average (-32.6%).


Return on Equity

High ROE: TPT's Return on Equity (10.3%) is considered low.


Next Steps

Financial Health

How is Topps Tiles's financial position?


Financial Position Analysis

Short Term Liabilities: TPT's short term assets (£61.3M) do not cover its short term liabilities (£63.2M).

Long Term Liabilities: TPT's short term assets (£61.3M) do not cover its long term liabilities (£138.2M).


Debt to Equity History and Analysis

Debt Level: TPT's debt to equity ratio (159.8%) is considered high.

Reducing Debt: TPT's debt to equity ratio has reduced from 950% to 159.8% over the past 5 years.

Debt Coverage: TPT's debt is well covered by operating cash flow (72.5%).

Interest Coverage: TPT's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Topps Tiles's current dividend yield, its reliability and sustainability?

1.21%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate TPT'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 TPT's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPT'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?

2.4yrs

Average management tenure


CEO

Rob Parker (48 yo)

0.92

Tenure

UK£366,000

Compensation

Mr. Robert Parker, also known as Rob, ACMA is the Group Chief Executive Officer of Topps Tiles plc since November 29, 2019 and served as its Chief Financial Officer until November 29, 2019 and also served ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD480.98K) is above average for companies of similar size in the UK market ($USD356.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Parker
Group CEO & Executive Director0.92yrUK£366.00k0.28%
£ 254.3k
Alistair Hodder
Head of Legal & Company Secretary2.33yrsno datano data
Richard Carter
Managing Director of Retail2.5yrsno datano data
Brian Linnington
Managing Director of Commercial2.5yrsno datano data

2.4yrs

Average Tenure

Experienced Management: TPT's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Parker
Group CEO & Executive Director0.92yrUK£366.00k0.28%
£ 254.3k
Darren Shapland
Independent Non-Executive Chairman5.58yrsUK£133.00k0.10%
£ 92.0k
Andy King
Independent Non-Executive Director8.75yrsUK£45.00kno data
Clarie Tiney
Independent Non-Executive Director8.83yrsUK£46.00k0.0079%
£ 7.1k
Keith Down
Senior Independent Directorno dataUK£45.00kno data

8.8yrs

Average Tenure

55yo

Average Age

Experienced Board: TPT's board of directors are considered experienced (8.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TPT 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

Topps Tiles Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Topps Tiles Plc
  • Ticker: TPT
  • Exchange: LSE
  • Founded: 1963
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: UK£89.684m
  • Shares outstanding: 194.96m
  • Website: https://www.toppstiles.co.uk

Number of Employees


Location

  • Topps Tiles Plc
  • Thorpe Way
  • Grove Park
  • Leicester
  • Leicestershire
  • LE19 1SU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPTLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1997
TPTJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1997
TPTLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1997

Biography

Topps Tiles Plc engages in the retail and wholesale distribution of ceramic and porcelain tiles, natural stone, and related products for homeowners and tile fitters in the United Kingdom. The company offer ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 22:03
End of Day Share Price2020/10/21 00:00
Earnings2020/03/28
Annual Earnings2019/09/28


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.