OTCPK:TPRK.Y

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 43.11% per year

Became profitable this year

Risk Analysis

Shares are highly illiquid

Dividend of 2.89% is not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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CRH

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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: TPRK.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

18.2%

TPRK.Y

1.8%

US Trade Distributors

0.7%

US Market


1 Year Return

n/a

TPRK.Y

27.0%

US Trade Distributors

21.1%

US Market

Return vs Industry: Insufficient data to determine how TPRK.Y performed against the US Trade Distributors industry.

Return vs Market: Insufficient data to determine how TPRK.Y performed against the US Market.


Shareholder returns

TPRK.YIndustryMarket
7 Day18.2%1.8%0.7%
30 Day18.2%1.9%2.3%
90 Dayn/a9.5%5.0%
1 Yearn/a29.5%27.0%23.7%21.1%
3 Yearn/a33.0%27.3%47.0%37.4%
5 Yearn/a41.9%31.6%65.7%47.5%

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

No news available

Valuation

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

54.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TPRK.Y ($21.79) is trading above our estimate of fair value ($19.73)

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


Price To Earnings Ratio

PE vs Industry: TPRK.Y is poor value based on its PE Ratio (54.6x) compared to the Trade Distributors industry average (18.2x).

PE vs Market: TPRK.Y is poor value based on its PE Ratio (54.6x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: TPRK.Y is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TPRK.Y is good value based on its PB Ratio (1.6x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Travis Perkins forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

43.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPRK.Y's forecast earnings growth (43.1% per year) is above the savings rate (1.7%).

Earnings vs Market: TPRK.Y's earnings (43.1% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: TPRK.Y's revenue (1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TPRK.Y's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPRK.Y's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Travis Perkins performed over the past 5 years?

-46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPRK.Y has a large one-off gain of £196.9M impacting its June 30 2019 financial results.

Growing Profit Margin: TPRK.Y became profitable in the past.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TPRK.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-8.5%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Travis Perkins's financial position?


Financial Position Analysis

Short Term Liabilities: TPRK.Y's short term assets (£2.6B) exceed its short term liabilities (£2.0B).

Long Term Liabilities: TPRK.Y's short term assets (£2.6B) exceed its long term liabilities (£1.8B).


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: TPRK.Y's debt is covered by short term assets (assets are 4.5x debt).


Next Steps

Dividend

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

2.89%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: TPRK.Y's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: TPRK.Y's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

Growing Dividend: TPRK.Y'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%), TPRK.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TPRK.Y's dividends in 3 years are forecast to be well covered by earnings (43.7% 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?

3.9yrs

Average management tenure


CEO

Nick Roberts 0

0.4yrs

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

3.9yrs

Average Tenure

54yo

Average Age

Experienced Management: TPRK.Y's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: TPRK.Y's board of directors are considered experienced (3.5 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

  • Paul Tallentire (56yo)

    Chief Executive Officer of General Merchanting Division

    • Tenure: 7.9yrs
  • 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: 7.9yrs
  • Andy Harrison (62yo)

    Deputy CEO of Plumbing & Heating Division

    • Tenure: 2.3yrs
  • Alan Williams (50yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£1.18m
  • Graeme Barnes

    Head of Investor Relations

    • Tenure: 4.8yrs
  • Nick Roberts

    CEO & Director

    • Tenure: 0.4yrs
  • Patrick Knight

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • John Rogers (50yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£58.00k
  • Stuart Chambers (63yo)

    Non-Executive Chairman

    • Tenure: 2.1yrs
    • Compensation: UK£320.00k
  • Coline McConville (55yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£75.00k
  • Chris Rogers (59yo)

    Senior Independent Director

    • Tenure: 4.1yrs
    • Compensation: UK£70.00k
  • Pete Redfern (47yo)

    Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£68.00k
  • Ruth Anderson (65yo)

    Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: UK£75.00k
  • Marianne Culver (62yo)

    Non-Executive Director

    • Tenure: 0.08yrs
  • Alan Williams (50yo)

    CFO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: UK£1.18m
  • Blair Illingworth

    Non-Executive Director

    • Tenure: 0.08yrs
  • Nick Roberts

    CEO & Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Travis Perkins plc
  • Ticker: TPRK.Y
  • Exchange: OTCPK
  • Founded: 1797
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£4.029b
  • Listing Market Cap: UK£5.373b
  • 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 Analysis2019/12/15 01:02
End of Day Share Price2019/12/13 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.