Travis Perkins (TPK) AI Stock Analysis

• Market Cap: £1.28B
• Dividend Yield: 2.23%
• Average Volume (3M): 860.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.76
• Revenue Growth: -4.34%
• EPS Growth: -220.12%
• Country: UK
• Employees: 17,594
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.13
• Shares Outstanding: 212,509,340
• 10 Day Avg. Volume: 697,624
• 30 Day Avg. Volume: 860,326
• PEG Ratio: 0.07
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 10.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £728.33
• Price Target Upside: 20.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 703.00p ▲(16.10% Upside)

Travis Perkins' overall stock score is driven by strong cash flow management and positive corporate events, despite challenges in profitability and valuation. The technical analysis supports a positive outlook with bullish momentum. The company's strategic focus on improving margins and market share, along with stable financials, positions it well for future growth.

Positive Factors

Cash Flow Management

Strong cash flow management indicates effective operational efficiency and provides the company with the flexibility to invest in growth opportunities and manage debt obligations over the long term.

Balance Sheet Stability

A moderate leverage ratio suggests a stable financial structure, allowing the company to withstand economic fluctuations and invest in strategic initiatives without excessive financial risk.

Gross Profit Margin

A strong gross profit margin reflects the company's ability to efficiently convert revenue into profit, which is crucial for sustaining operations and funding future growth.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth and profitability if not addressed.

Negative Net Profit Margin

A negative net profit margin suggests difficulties in managing expenses and achieving profitability, which may hinder the company's ability to reinvest in its business and reward shareholders.

Operational Inefficiencies

Decreased EBIT margin points to operational inefficiencies, potentially affecting the company's competitiveness and ability to generate sustainable profits in the long term.

Travis Perkins Business Overview & Revenue Model

Company Description

Travis Perkins plc distributes building materials to the building, construction, and home improvement markets in the United Kingdom. It operates through, Merchanting, and Toolstation segments. The Merchanting segment distributes interior building products, which include drywalls, ceilings, external envelopes, fire protection products, flooring and partitioning products, and tools and accessories to professionals within the construction industry; civil, drainage, and heavy building materials to specialist contractors and trade professionals; and pipeline and heating solutions. This segment also distributes building materials, plumbing and heating products, landscaping materials, timber and sheet materials, painting and decorating products, dry lining and insulation products, doors and joinery, and hand and power tools to trade professionals and self-builders. The Toolstation segment supplies products to the trade, home improvers, and self-builders industry through approximately 500 branches, as well as online, call centers, and a mobile website. It also offers kitchens and joinery products to specialist joiners, kitchen fitters, house builders, local authorities, and national house builders. 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.

How the Company Makes Money

Travis Perkins generates revenue primarily through the sale of building materials and related products across its various segments. The General Merchanting division contributes significantly to earnings by providing a comprehensive range of construction supplies to builders and contractors. The Plumbing & Heating segment focuses on supplying essential plumbing and heating products, capitalizing on the growing demand for maintenance and renovation services. Additionally, the company earns revenue from large-scale contracts with commercial and public sector clients, which often involve long-term supply agreements. Strategic partnerships with manufacturers and suppliers enhance its product offerings and can lead to exclusive distribution rights, further driving revenue. The company's investment in digital channels also facilitates online sales, expanding its customer base and increasing transaction volumes.

Travis Perkins Financial Statement Overview

Summary

Travis Perkins shows strong cash flow management with a significant growth rate in free cash flow, despite challenges in revenue growth and profitability. The balance sheet is stable with moderate leverage, providing a cushion against financial risks.

Income Statement

Travis Perkins demonstrates a mixed performance in profitability and revenue growth. The gross profit margin for 2024 is approximately 26.12%, indicating a strong ability to convert revenue into gross profit. However, the net profit margin is negative at approximately -1.68%, reflecting challenges in managing overall expenses and profitability. The EBIT margin has significantly decreased, reflecting operational inefficiencies. Revenue has declined over the past year by about 5.22%, indicating a downturn in sales.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of approximately 0.55, indicating moderate leverage. The return on equity (ROE) is negative due to the net loss, suggesting inefficiencies in generating returns on shareholder investments. The equity ratio stands at around 48.96%, showcasing a substantial proportion of assets financed by equity, which provides stability against financial risks.

Cash Flow

The cash flow statement highlights robust free cash flow generation with a notable growth rate of approximately 79.76% from the previous year. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to net income. Free cash flow to net income is also strong, pointing to efficient cash management. Despite a challenging net income, cash flows remain resilient, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.55B	4.61B	4.86B	4.99B	4.59B	3.70B
Gross Profit	1.18B	1.20B	1.31B	1.38B	1.31B	1.04B
EBITDA	218.30M	202.70M	303.20M	461.20M	464.90M	193.70M
Net Income	-55.70M	-77.40M	38.10M	192.20M	278.90M	-22.40M
Balance Sheet
Total Assets	4.07B	4.03B	4.03B	4.14B	4.40B	6.08B
Cash, Cash Equivalents and Short-Term Investments	319.30M	244.40M	131.50M	235.70M	459.80M	505.60M
Total Debt	1.03B	1.09B	1.05B	1.05B	1.06B	1.90B
Total Liabilities	2.08B	2.06B	1.99B	2.03B	2.16B	3.37B
Stockholders Equity	1.99B	1.97B	2.04B	2.10B	2.24B	2.71B
Cash Flow
Free Cash Flow	156.90M	150.30M	85.00M	118.40M	167.60M	384.90M
Operating Cash Flow	230.80M	222.50M	217.60M	257.50M	332.30M	487.20M
Investing Cash Flow	2.70M	-3.40M	-58.90M	-116.60M	139.80M	-9.00M
Financing Cash Flow	-127.80M	-119.40M	-250.40M	-377.50M	-517.90M	-180.50M

Travis Perkins Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 605.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPK, the sentiment is Neutral. The current price of 605.5 is above the 20-day moving average (MA) of 604.05, below the 50-day MA of 618.04, and above the 200-day MA of 589.80, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 36.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TPK.

Travis Perkins Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPWN	77 Outperform	―	―	16.23%	4.27%	4.67%	93.06%
FAN	77 Outperform	£1.22B	29.65	16.10%	1.74%	20.57%	-3.18%
TPK	75 Outperform	£1.28B	-22.93	-0.94%	2.23%	-4.34%	-220.12%
NXR	74 Outperform	£277.04M	21.89	10.01%	3.44%	-3.93%	41.83%
GEN	71 Outperform	£811.62M	16.53	7.68%	3.19%	5.88%	107.36%
ECEL	70 Neutral	£127.37M	17.23	7.23%	4.02%	5.51%	-33.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Travis Perkins Corporate Events

Travis Perkins to Redeem and Cancel GBP 250 Million Notes

Travis Perkins plc has announced the redemption and cancellation of its GBP 250 million 3.750% Guaranteed Notes due 2026. The redemption will occur on December 19, 2025, at the principal amount plus accrued interest, funded by a recent GBP 125 million private placement. This strategic move will also lead to the cancellation of the Notes’ listing on the London Stock Exchange, potentially impacting the company’s financial structure and market positioning.

Travis Perkins Announces Board Committee Changes

Travis Perkins PLC announced changes in its board committee responsibilities, with Jez Maiden appointed as Interim Chair of the Remuneration Committee, succeeding Louise Hardy, who remains a member. Louise Hardy also stepped down from the Nominations Committee, with the changes effective immediately, ensuring continuity and independence in governance.

Travis Perkins Reports Q3 Revenue Growth Amid Competitive Market

Travis Perkins plc reported a 1.8% increase in like-for-like sales for Q3 2025, driven by improved performance in the Merchanting segment, despite subdued trading in Specialist Merchants’ markets. The company is focusing on strategy execution and operating margin improvement in Toolstation, while also enhancing cash generation to strengthen its balance sheet. The company is investing in pricing and promotions to regain market share, with plans to reinvest in its propositions as it prepares for the arrival of new CEO Gavin Slark in January.