OTCPK:TVPK.F

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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: TVPK.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-53.7%

TVPK.F

7.6%

US Trade Distributors

7.2%

US Market


1 Year Return

-55.5%

TVPK.F

-24.7%

US Trade Distributors

-10.4%

US Market

Return vs Industry: TVPK.F underperformed the US Trade Distributors industry which returned -24.7% over the past year.

Return vs Market: TVPK.F underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

TVPK.FIndustryMarket
7 Day-53.7%7.6%7.2%
30 Day-60.8%-23.2%-12.6%
90 Dayn/a-34.5%-19.4%
1 Year-55.5%-55.5%-23.2%-24.7%-8.5%-10.4%
3 Year-57.0%-57.0%-16.5%-20.5%15.8%8.3%
5 Year-72.3%-72.3%0.6%-7.0%35.8%21.0%

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

No news available

Valuation

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

2.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TVPK.F ($7.98) is trading below our estimate of fair value ($8.2)

Significantly Below Fair Value: TVPK.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TVPK.F is poor value based on its PE Ratio (17.7x) compared to the Trade Distributors industry average (10.6x).

PE vs Market: TVPK.F is poor value based on its PE Ratio (17.7x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: TVPK.F is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: TVPK.F is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is Travis Perkins forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TVPK.F's forecast earnings growth (21.4% per year) is above the savings rate (1.7%).

Earnings vs Market: TVPK.F's earnings (21.4% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: TVPK.F's revenue (1.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: TVPK.F's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TVPK.F's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Travis Perkins performed over the past 5 years?

-37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TVPK.F has a large one-off gain of £59.2M impacting its December 31 2019 financial results.

Growing Profit Margin: TVPK.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TVPK.F's earnings have declined by -37.8% per year over the past 5 years.

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

Earnings vs Industry: TVPK.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Trade Distributors industry (5.1%).


Return on Equity

High ROE: TVPK.F's Return on Equity (4.7%) is considered low.


Next Steps

Financial Health

How is Travis Perkins's financial position?


Financial Position Analysis

Short Term Liabilities: TVPK.F's short term assets (£2.5B) exceed its short term liabilities (£1.9B).

Long Term Liabilities: TVPK.F's short term assets (£2.5B) exceed its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: TVPK.F's debt to equity ratio (22.5%) is considered satisfactory.

Reducing Debt: TVPK.F's debt to equity ratio has increased from 17.3% to 22.5% over the past 5 years.

Debt Coverage: TVPK.F's debt is well covered by operating cash flow (63.3%).

Interest Coverage: TVPK.F's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: TVPK.F's debt is covered by short term assets (assets are 4.3x debt).


Next Steps

Dividend

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

5.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TVPK.F's dividend (5.61%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: TVPK.F's dividend (5.61%) is in the top 25% of dividend payers in the US market (5.4%)


Stability and Growth of Payments

Stable Dividend: TVPK.F's dividends per share have been stable in the past 10 years.

Growing Dividend: TVPK.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.3%), TVPK.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TVPK.F's dividends in 3 years are forecast to be well covered by earnings (46.4% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Nick Roberts

0.67

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 ($USD2.34M) is below average for companies of similar size in the US market ($USD5.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Roberts
CEO & Director0.67yrUK£1.88m0.0050% £134.4k
Alan Williams
CFO & Executive Director3.17yrsUK£2.25m0.063% £1.7m
Patrick Knight
Chief Information Officerno datano data0.0033% £86.9k
Graeme Barnes
Head of Investor Relations5yrsno datano data
Robin Miller
Company Secretary & General Counselno datano data0.00058% £15.5k
Carol Kavanagh
Group Human Resources Directorno datano data0.073% £1.9m
Paul Tallentire
Chief Executive Officer of General Merchanting Division8.17yrsno data0.020% £533.7k
Frank Elkins
Chief Operating Officer of Merchantingno datano data0.019% £519.0k
Andrew Harrison
Deputy CEO of Plumbing & Heating Division2.42yrsno data0.047% £1.2m
Simon King
Managing Director of Wickes8.17yrsno data0.016% £426.8k

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: TVPK.F's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Roberts
CEO & Director0.67yrUK£1.88m0.0050% £134.4k
Alan Williams
CFO & Executive Director3.17yrsUK£2.25m0.063% £1.7m
John Rogers
Independent Non-Executive Director5.25yrsUK£58.00k0.0011% £29.3k
Stuart Chambers
Independent Non-Executive Chairman2.25yrsUK£320.00k0.0031% £82.1k
Coline McConville
Independent Non-Executive Director5yrsUK£75.00k0.0014% £37.3k
Christopher Charles Rogers
Senior Independent Non-Executive Director4.25yrsUK£70.00k0.0034% £92.0k
Peter Redfern
Independent Non-Executive Director5.25yrsUK£68.00k0.0041% £110.4k
Marianne Culver
Independent Non-Executive Director0.25yrUK£10.00k0.000060% £1.6k
Blair Illingworth
Independent Non-Executive Director0.25yrUK£10.00k0.000070% £1.9k

3.2yrs

Average Tenure

55yo

Average Age

Experienced Board: TVPK.F's board of directors are considered experienced (3.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TVPK.F 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: TVPK.F
  • Exchange: OTCPK
  • Founded: 1797
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£2.149b
  • Listing Market Cap: UK£2.666b
  • 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
LFPBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFJan 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 improvement projects, as well as new residential and commercial construction. This division serves sole traders and national housebuilders under the Travis Perkins and Benchmarx brands. The company’s Consumer division supplies domestic building and decorative materials through its store network to DIY and trade customers under the Wickes, Toolstations, and Tile Giant brands. Its Contracts division supplies products used in large construction projects, including new road and rail infrastructure, and power generation construction, as well as public service infrastructure, such as hospitals and schools, and commercial and residential construction and refurbishment. It also provides civils, heavy building, and drainage materials; pipeline and heating solutions; and ceilings, insulation, and drywall products. This segment offers its products under the Keyline, RUDRIDGE, BSS, tfsolutions, and CCF brands. The company’s Plumbing & Heating division delivers various products to installer and contract customers through an integrated national branch network and online capability; and engages in the wholesale business for trade distributor. It provides its products under the PlumbNation, DHS, NSS, The Underfloor Heating Store, City Plumbing Supplies, PTS, and Primaflow F&P brands. The company was formerly known as Sandell Perkins Public Limited Company and changed its name to Travis Perkins plc in October 1988. Travis Perkins plc was founded in 1797 and is headquartered in Northampton, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.