Travis Perkins (TPK) AI Stock Analysis

• Market Cap: £1.30B
• Dividend Yield: 1.48%
• Average Volume (3M): 860.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• 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: £717.14
• Price Target Upside: 17.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: 602.00p ▼(-1.47% Downside)

Travis Perkins' overall stock score is primarily influenced by its strong cash flow management, which is a key strength. However, the stock faces significant challenges with bearish technical indicators and unattractive valuation metrics due to negative profitability. The stable balance sheet provides some resilience, but the overall outlook is tempered by declining revenue and operational inefficiencies.

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 is a leading UK-based supplier of building materials and products, serving the construction and maintenance sectors. The company operates through various segments, including General Merchanting, Plumbing & Heating, and Contracts, offering a wide range of products such as timber, bricks, roofing materials, plumbing supplies, and tools. With a vast network of branches and a strong online presence, Travis Perkins caters to both trade professionals and DIY enthusiasts, positioning itself as a key player in the construction supply chain.

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: 611.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 611 is above the 20-day moving average (MA) of 604.50, below the 50-day MA of 618.40, and above the 200-day MA of 590.91, indicating a neutral trend. The MACD of 1.48 indicates Negative momentum. The RSI at 49.76 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 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%
ECEL	66 Neutral	£125.71M	16.82	7.23%	4.10%	5.51%	-33.75%
NXR	64 Neutral	£269.84M	76.73	10.01%	3.51%	-3.93%	41.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GEN	63 Neutral	£896.27M	18.26	7.68%	3.20%	5.88%	107.36%
FAN	61 Neutral	£1.27B	30.51	16.10%	1.74%	20.57%	-3.18%
TPK	55 Neutral	£1.30B	-23.38	-0.94%	1.48%	-4.34%	-220.12%

Travis Perkins Corporate Events

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.

The most recent analyst rating on (GB:TPK) stock is a Buy with a £7.70 price target. To see the full list of analyst forecasts on Travis Perkins stock, see the GB:TPK Stock Forecast page.

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.

The most recent analyst rating on (GB:TPK) stock is a Buy with a £8.30 price target. To see the full list of analyst forecasts on Travis Perkins stock, see the GB:TPK Stock Forecast page.