Travis Perkins (TPK) AI Stock Analysis

• Market Cap: £1.27B
• Dividend Yield: 2.08%
• Average Volume (3M): 860.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• 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: £698.43
• Price Target Upside: 7.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 70 Outperform
• Price Target: 714.00p ▲(9.93% Upside)

Travis Perkins' overall stock score is driven by strong cash flow management and positive technical indicators, which are offset by valuation concerns due to negative earnings. The stable balance sheet provides a foundation for future growth, but profitability challenges need to be addressed.

Positive Factors

Cash Flow Management

Robust free cash flow growth of 79.76% indicates effective cash management, supporting future investments and debt servicing.

Balance Sheet Stability

Moderate leverage and a strong equity ratio provide financial stability, reducing risk and supporting long-term growth.

Gross Profit Margin

A strong gross profit margin shows the company's ability to convert revenue into profit, indicating pricing power and operational efficiency.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive pressures, impacting growth prospects.

Net Profit Margin

Negative net profit margin indicates difficulties in managing expenses, affecting overall profitability and financial health.

Earnings Inefficiency

Negative ROE highlights inefficiencies in generating returns on shareholder investments, potentially deterring future investment.

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 supplies across its various business segments. The company's key revenue streams include sales from its General Merchanting segment, which encompasses a diverse range of construction materials, and its Plumbing and Heating division, focused on plumbing supplies and heating products. Additionally, the Retail segment contributes to revenue through the sale of tools and home improvement products. The company also benefits from strategic partnerships with manufacturers and suppliers, which enhance its product offerings and competitive pricing. Furthermore, the company's strong focus on customer service and extensive branch network fosters customer loyalty, driving repeat business and contributing to stable revenue growth.

Travis Perkins Financial Statement Overview

Summary

Travis Perkins shows mixed financial performance. Strong cash flow management with a 79.76% growth in free cash flow and a stable balance sheet with moderate leverage are positive. However, challenges in revenue growth and profitability, with a negative net profit margin and a 5.22% revenue decline, highlight areas for improvement.

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	306.40M	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: Positive
• Last Price: 649.50
• 50DMA: Positive
• 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 Positive. The current price of 649.5 is above the 20-day moving average (MA) of 620.07, above the 50-day MA of 598.90, and above the 200-day MA of 599.50, indicating a bullish trend. The MACD of 9.12 indicates Positive momentum. The RSI at 62.45 is Neutral, neither overbought nor oversold. The STOCH value of 47.61 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

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%
TPK	70 Outperform	£1.27B	―	-0.94%	2.08%	-4.34%	-220.12%
GEN	70 Outperform	£890.04M	18.05	7.68%	2.74%	5.88%	107.36%
ECEL	66 Neutral	£122.36M	16.35	7.23%	4.18%	5.51%	-33.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NXR	62 Neutral	£259.95M	74.17	1.63%	3.65%	-6.12%	-86.98%
FAN	61 Neutral	£1.27B	30.41	16.10%	1.47%	20.57%	-3.18%

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.

Travis Perkins Reports Revenue Decline Amidst Operational Challenges

Travis Perkins reported a 2.1% decline in group revenue for the first half of 2025, primarily due to operational challenges in its Merchanting segment. Despite this, the company managed to stabilize its market share and improve its statutory operating profit to £59m from £48m in 2024. The company also made significant progress in reducing net debt and enhancing cash generation, with a notable 50% increase in operating profit for Toolstation UK. Leadership changes are underway with the appointment of Gavin Slark as CEO, effective January 2026, and new management structures in place to drive future growth.

The most recent analyst rating on (GB:TPK) stock is a Buy with a £10.00 price target. To see the full list of analyst forecasts on Travis Perkins stock, see the GB:TPK Stock Forecast page.