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Travis Perkins
(LSE:TPK)
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Rating:59Neutral
Price Target:
599.00 p
▲(8.81% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial performance: improving cash generation and moderate leverage are positives, but recent net losses and weakened profitability are a material constraint. Technicals add modest support (improving near-term trend but still below the 200-day average). Valuation is held back by a negative P/E despite a ~2.16% dividend yield, while the latest earnings call contributes a moderate uplift due to margin/EPS and balance-sheet progress tempered by cautious guidance and ongoing market headwinds.
Positive Factors
Cash generation
Consistent positive operating cash flow and materially stronger free cash flow provide durable financial flexibility. Over 2–6 months this underpins the ability to fund capex, sustain the interim dividend, reduce leverage and absorb trading volatility without immediate external financing.
Negative Factors
Consecutive net losses
Sustained net losses and negative net margins erode equity and reduce return metrics. Continued losses would materially weaken capital buffers, constrain strategic investment and dividend capacity, and could force deeper cost or structural actions that impair medium‑term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating cash flow and materially stronger free cash flow provide durable financial flexibility. Over 2–6 months this underpins the ability to fund capex, sustain the interim dividend, reduce leverage and absorb trading volatility without immediate external financing.
Read all positive factors
Travis Perkins (TPK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.43B
Dividend Yield1.78%
Average Volume (3M)860.33K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-0.49%
EPS Growth-208.37%
CountryUK
Employees17,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)-0.81
Shares Outstanding212,509,340
10 Day Avg. Volume697,624
30 Day Avg. Volume860,326
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.76
Price to Sales (P/S)0.29
P/FCF Ratio4.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£616.56Price Target Upside12.00% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.28
Revenue Forecast (FY)£4.55B
Travis Perkins Business Overview & Revenue Model
Company Description
Travis Perkins plc, established in 1797 and headquartered in Northampton, United Kingdom, stands as a prominent distributor of construction and home improvement supplies throughout the UK. The company, formerly known as Sandell Perkins Public Limi...
How the Company Makes Money
TPK primarily makes money by buying construction and building-related products from manufacturers and other suppliers and reselling them at a margin through its branch network and distribution channels. The core revenue stream is product sales to ...
Travis Perkins Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call balanced notable operational and financial improvements (gross margin expansion, profit and EPS growth, strong cash and leverage reduction, retained dividend, operational gains in Green & Gold and Toolstation) against persistent market headwinds (weak top line, construction insolvency risk, cost inflation and demand uncertainty). Management emphasized disciplined pricing, procurement and cash focus, delivered tangible H1 results, but guided to a similarly challenging H2. Overall the improvements in profitability, cash and balance sheet are material and give management flexibility, while underlying demand and inflation risks keep the near‑term outlook cautious.Positive Updates
Revenue and Like-for-Like Performance
Group revenue reported at approximately GBP 2.26bn (management also referenced GBP 2.3bn), down 1.8% year‑on‑year; like‑for‑like turnover down c.0.7% (sale of Staircraft contributed to the decline).
Negative Updates
Top‑line Pressure and Market Weakness
Revenue down 1.8% and like‑for‑like down 0.7% amid challenging trading conditions: new housebuilding has stalled, RMI activity is confidence‑linked and subdued, and construction output was impacted by poor weather early in the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Like-for-Like Performance
Group revenue reported at approximately GBP 2.26bn (management also referenced GBP 2.3bn), down 1.8% year‑on‑year; like‑for‑like turnover down c.0.7% (sale of Staircraft contributed to the decline).
Read all positive updates
Company Guidance
Management guidance and framing from the call was that the group expects an effective tax rate of c.28% on UK profits, base FY26 capital expenditure of £60–70m, full‑year property profits of around £5m (already achieved in H1), and a similar market backdrop and therefore similar H2 trading to H1; the Board is recommending a 4p interim dividend payable 6 November. Key balance‑sheet/earnings metrics cited alongside this guidance were net cash before leases of £55m (net debt £543m), leverage at 1.9x (target range 1.5–2x), adjusted operating profit £62m before property (£67m including property), adjusted EPS 15.1p (up 13.5%), and gross margin up c.100bps, with ongoing focus on capex, cash and working capital.Travis Perkins Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
60
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.52B | 4.56B | 4.61B | 4.86B | 4.99B | 4.59B |
| Gross Profit | 1.20B | 1.18B | 1.20B | 1.31B | 1.38B | 1.31B |
| EBITDA | 264.80M | 273.40M | 202.70M | 303.20M | 461.20M | 464.90M |
| Net Income | -172.40M | -176.30M | -77.40M | 38.10M | 192.20M | 278.90M |
Balance Sheet | ||||||
| Total Assets | 3.96B | 3.81B | 4.03B | 4.03B | 4.14B | 4.40B |
| Cash, Cash Equivalents and Short-Term Investments | 482.40M | 426.90M | 244.40M | 131.50M | 235.70M | 459.80M |
| Total Debt | 1.03B | 1.05B | 1.09B | 1.05B | 1.05B | 1.06B |
| Total Liabilities | 2.16B | 2.03B | 2.06B | 1.99B | 2.03B | 2.16B |
| Stockholders Equity | 1.80B | 1.78B | 1.97B | 2.04B | 2.10B | 2.24B |
Cash Flow | ||||||
| Free Cash Flow | 286.00M | 281.30M | 150.30M | 85.00M | 118.40M | 167.60M |
| Operating Cash Flow | 351.00M | 355.10M | 222.50M | 217.60M | 257.50M | 332.30M |
| Investing Cash Flow | -10.90M | -4.50M | -3.40M | -58.90M | -116.60M | 139.80M |
| Financing Cash Flow | -168.80M | -154.90M | -119.40M | -250.40M | -377.50M | -517.90M |
Travis Perkins Technical Analysis
Positive
550.50
Price Trends
561.15
Positive
554.78
Positive
592.21
Positive
Market Momentum
27.52
Negative
74.22
Negative
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPK, the sentiment is Positive. The current price of 550.5 is below the 20-day moving average (MA) of 580.13, below the 50-day MA of 561.15, and below the 200-day MA of 592.21, indicating a bullish trend. The MACD of 27.52 indicates Negative momentum. The RSI at 74.22 is Negative, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TPK.
Travis Perkins Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £790.51M | 17.27 | 6.89% | 4.77% | 7.27% | 34.79% | |
70 Neutral | £539.63M | 14.18 | 20.94% | 7.50% | -3.52% | -10.90% | |
67 Neutral | £116.29M | 12.30 | 9.23% | 5.57% | 12.74% | -3.35% | |
65 Neutral | £197.40M | 231.34 | 1.61% | 5.06% | -3.78% | -94.91% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | £1.43B | -8.33 | -9.35% | 2.18% | -0.49% | -208.37% | |
54 Neutral | £300.55M | 982.35 | 0.15% | 3.60% | 6.87% | -91.28% |
* Industrials Sector Average
GB:TPK
Travis Perkins
675.00
77.24
12.92%
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118.00
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GB:JHD
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128.60
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GB:NXR
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334.00
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21.71%
GB:GEN
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313.60
-55.03
-14.93%
GB:SRAD
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155.00
2.90
1.90%
Travis Perkins Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Travis Perkins lifts profit and strengthens balance sheet amid subdued construction markets
Positive
Aug 4, 2026
Travis Perkins reported half-year 2026 revenue of £2.26 billion, down 1.8% amid weak UK construction markets and the prior disposal of Staircraft, but lifted adjusted operating profit to £67 million through an £11 million gross marg...
Executive/Board Changes
Travis Perkins Adds Marianne Culver to Nominations Committee
Neutral
May 21, 2026
Travis Perkins has announced a change in board responsibilities, appointing existing non-executive director Marianne Culver as a member of its Nominations Committee with effect from 21 May 2026. The board has reviewed and approved the change, sign...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Travis Perkins AGM backs all resolutions amid shareholder pushback on share authorities
Positive
May 21, 2026
Travis Perkins held its Annual General Meeting in London on 21 May 2026, where shareholders approved all 17 resolutions, including the receipt of the 2025 accounts, the directors’ remuneration report, a final dividend of 7.5 pence per share,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.