LSE:TPT

Stock Analysis Report

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.

Rewards

Trading at 51.1% below its fair value

Earnings are forecast to grow 7.03% per year

Earnings grew by 4.7% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Solid track record with excellent balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

TPT

3.1%

GB Specialty Retail

-0.8%

GB Market


1 Year Return

10.5%

TPT

22.4%

GB Specialty Retail

8.5%

GB Market

Return vs Industry: TPT underperformed the UK Specialty Retail industry which returned 22.4% over the past year.

Return vs Market: TPT exceeded the UK Market which returned 8.5% over the past year.


Shareholder returns

TPTIndustryMarket
7 Day-2.2%3.1%-0.8%
30 Day-1.6%5.5%-0.3%
90 Day6.5%13.4%2.1%
1 Year16.3%10.5%26.9%22.4%14.1%8.5%
3 Year-2.8%-15.3%6.4%-4.5%19.2%4.0%
5 Year-25.4%-37.6%15.4%-2.5%41.8%9.5%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPT (£0.72) is trading below our estimate of fair value (£1.48)

Significantly Below Fair Value: TPT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TPT is good value based on its PE Ratio (13.9x) compared to the Specialty Retail industry average (16.1x).

PE vs Market: TPT is good value based on its PE Ratio (13.9x) compared to the UK market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: TPT is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TPT is overvalued based on its PB Ratio (4.7x) compared to the GB Specialty Retail industry average (1x).


Next Steps

Future Growth

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

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPT's forecast earnings growth (7% per year) is above the savings rate (0.5%).

Earnings vs Market: TPT's earnings (7% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: TPT's revenue (2.5% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: TPT's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPT's Return on Equity is forecast to be high in 3 years time (28.3%)


Next Steps

Past Performance

How has Topps Tiles performed over the past 5 years?

-7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPT has high quality earnings.

Growing Profit Margin: TPT's current net profit margins (4.6%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: TPT's earnings have declined by -7.8% per year over the past 5 years.

Accelerating Growth: TPT's earnings growth over the past year (4.7%) exceeds its 5-year average (-7.8% per year).

Earnings vs Industry: TPT earnings growth over the past year (4.7%) exceeded the Specialty Retail industry 2.5%.


Return on Equity

High ROE: TPT's Return on Equity (33.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Topps Tiles's financial position?


Financial Position Analysis

Short Term Liabilities: TPT's short term assets (£57.8M) exceed its short term liabilities (£46.6M).

Long Term Liabilities: TPT's short term assets (£57.8M) exceed its long term liabilities (£34.9M).


Debt to Equity History and Analysis

Debt Level: TPT's debt to equity ratio (98.8%) is considered high.

Reducing Debt: TPT's debt to equity ratio has reduced from 5354.1% to 98.8% over the past 5 years.

Debt Coverage: TPT's debt is well covered by operating cash flow (73.3%).

Interest Coverage: TPT's interest payments on its debt are well covered by EBIT (17.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: TPT's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

4.70%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Topps Tiles before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.7%marketbottom25%2.0%markettop25%5.3%industryaverage2.8%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: TPT's dividend (4.7%) is higher than the bottom 25% of dividend payers in the UK market (1.96%).

High Dividend: TPT's dividend (4.7%) is low compared to the top 25% of dividend payers in the UK market (5.25%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.4%), TPT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPT's dividends in 3 years are forecast to be covered by earnings (52.7% payout ratio).


Next Steps

Management

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

0.08yrs

Average management tenure


CEO

Rob Parker (47yo)

0.08yrs

Tenure

UK£347,000

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 ($USD454.58K) is below average for companies of similar size in the UK market ($USD660.26K).

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


Management Age and Tenure

0.08yrs

Average Tenure

Experienced Management: TPT's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

54yo

Average Age

Experienced Board: TPT's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Matt Williams (45yo)

    • Tenure: 0.08yrs
    • Compensation: UK£538.00k
  • Brian Linnington

    Managing Director of Commercial

    • Tenure: 0yrs
  • Rob Parker (47yo)

    Group CEO & Executive Director

    • Tenure: 0.08yrs
    • Compensation: UK£347.00k
  • Richard Carter

    Managing Director of Retail

    • Tenure: 0yrs
  • Alistair Hodder

    Head of Legal & Company Secretary

    • Tenure: 1.5yrs

Board Members

  • Darren Shapland (52yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£129.00k
  • Andy King (57yo)

    Independent Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: UK£45.00k
  • Claire Tiney (58yo)

    Senior Independent Director

    • Tenure: 4.8yrs
    • Compensation: UK£46.00k
  • Rob Parker (47yo)

    Group CEO & Executive Director

    • Tenure: 0.08yrs
    • Compensation: UK£347.00k
  • Keith Down (54yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£44.00k

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£142.322m
  • 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 Analysis2019/12/08 20:52
End of Day Share Price2019/12/06 00:00
Earnings2019/09/28
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.