Travis Perkins PLC (GB:TPK)
LSE:TPK
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Travis Perkins
(LSE:TPK)
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Rating:49Neutral
Price Target:
590.00 p
▼(-3.28% Downside)
Action:DowngradedDate:03/19/26
The score is held back primarily by weakened profitability (net losses in 2024–2025) and a poor technical trend (below major moving averages with negative MACD and low RSI/Stoch). Stronger operating and free cash flow and moderate leverage provide some support, while valuation is mixed due to the negative P/E despite a ~2.28% dividend yield.
Positive Factors
Strong operating and free cash flow
Consistent positive operating cash flow and rising free cash flow provide durable internal funding for working capital, capex and debt service. This cash generation cushions the business through cyclical construction demand and supports reinvestment or deleveraging despite reported accounting losses.
Negative Factors
Consecutive net losses and negative ROE
Sustained net losses and negative ROE erode equity and constrain the company's ability to fund growth or return capital. Over several quarters this weakens investor and creditor confidence and could force strategic trade-offs like cost cuts, asset sales, or curtailed investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating and free cash flow
Consistent positive operating cash flow and rising free cash flow provide durable internal funding for working capital, capex and debt service. This cash generation cushions the business through cyclical construction demand and supports reinvestment or deleveraging despite reported accounting losses.
Read all positive factors
Travis Perkins (TPK) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.20B
Dividend Yield2.12%
Average Volume (3M)860.33K
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth-4.34%
EPS Growth-220.12%
CountryUK
Employees17,594
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)-0.96
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
£715.29Price Target Upside17.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.34
Revenue Forecast (FY)£4.67B
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 ...
How the Company Makes Money
TPK primarily makes money by selling construction and building-related products and services through its merchanting and specialist distribution businesses. Revenue is largely generated from: (1) Trade and retail product sales: selling building ma...
Travis Perkins Earnings Call Summary
Earnings Call Date:Apr 01, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with both positive and negative aspects. While there were notable achievements in Toolstation U.K. profitability and debt reduction, the company faced significant challenges in merchanting performance and operational issues related to Oracle implementation.Positive Updates
Toolstation U.K. Profitability
Toolstation U.K. saw an increase in profitability, in line with previous guidance, and is expected to continue performing well despite challenging market conditions.
Negative Updates
Merchanting Underperformance
Merchant businesses continued to underperform, with the general merchant business ceding market share in the second half of the fiscal year.
Read all updates
Q4-2024 Updates
Positive
Negative
Toolstation U.K. Profitability
Toolstation U.K. saw an increase in profitability, in line with previous guidance, and is expected to continue performing well despite challenging market conditions.
Read all positive updates
Company Guidance
In the recent call, Travis Perkins provided guidance indicating that the group's financial performance for 2025 is expected to remain consistent with 2024, excluding property profits. Key metrics included a 4.7% decline in group revenue to GBP 4.6 billion and a 23.2% decrease in adjusted operating profit to GBP 152 million for 2024. The company also highlighted its efforts to manage cash generation more rigorously, resulting in a 39.2% reduction in net debt before leases, from GBP 340 million to GBP 191 million. The company expects capital expenditure to be around GBP 80 million, property profits at GBP 3 million, and an effective tax rate of 30% for the upcoming year. Despite challenges, particularly in the merchanting business, the company remains focused on enhancing operational efficiency and leveraging its strong fundamentals to improve market positioning.Travis Perkins Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
60
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.56B | 4.61B | 4.86B | 4.99B | 4.59B |
| Gross Profit | 1.18B | 1.20B | 1.31B | 1.38B | 1.31B |
| EBITDA | 273.40M | 202.70M | 303.20M | 461.20M | 464.90M |
| Net Income | -176.30M | -77.40M | 38.10M | 192.20M | 278.90M |
Balance Sheet | |||||
| Total Assets | 3.81B | 4.03B | 4.03B | 4.14B | 4.40B |
| Cash, Cash Equivalents and Short-Term Investments | 426.90M | 244.40M | 131.50M | 235.70M | 459.80M |
| Total Debt | 1.05B | 1.09B | 1.05B | 1.05B | 1.06B |
| Total Liabilities | 2.03B | 2.06B | 1.99B | 2.03B | 2.16B |
| Stockholders Equity | 1.78B | 1.97B | 2.04B | 2.10B | 2.24B |
Cash Flow | |||||
| Free Cash Flow | 281.30M | 150.30M | 85.00M | 118.40M | 167.60M |
| Operating Cash Flow | 355.10M | 222.50M | 217.60M | 257.50M | 332.30M |
| Investing Cash Flow | -4.50M | -3.40M | -58.90M | -116.60M | 139.80M |
| Financing Cash Flow | -154.90M | -119.40M | -250.40M | -377.50M | -517.90M |
Travis Perkins Technical Analysis
Negative
610.00
Price Trends
646.00
Negative
632.43
Negative
614.23
Negative
Market Momentum
-26.85
Positive
35.42
Neutral
36.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPK, the sentiment is Negative. The current price of 610 is above the 20-day moving average (MA) of 609.67, below the 50-day MA of 646.00, and below the 200-day MA of 614.23, indicating a bearish trend. The MACD of -26.85 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | £264.45M | 117.95 | 6.14% | 3.48% | -3.93% | 41.83% | |
70 Neutral | £499.35M | 16.44 | 22.71% | 5.91% | -4.70% | -2.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | £108.90M | 13.69 | 7.28% | 3.97% | 5.51% | -33.75% | |
60 Neutral | £750.66M | 18.00 | 7.59% | 3.19% | 5.88% | 107.36% | |
57 Neutral | £150.28M | 212.00 | 1.61% | 4.39% | -3.51% | -67.38% | |
49 Neutral | £1.20B | -7.63 | -9.35% | 2.12% | -4.34% | -220.12% |
* Industrials Sector Average
GB:TPK
Travis Perkins
568.00
13.09
2.36%
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Travis Perkins Corporate Events
Executive/Board Changes
Travis Perkins Grants CEO Buyout Share Award Tied to Forfeited SIG Incentives
Neutral
Mar 19, 2026
Travis Perkins has granted a buyout award comprising a conditional grant over 295,441 ordinary shares to its chief executive, Gavin Slark, to compensate for restricted share awards forfeited when he left former employer SIG plc. The award, structu...
Regulatory Filings and Compliance
Travis Perkins CFO Exercises Nil‑Cost Options and Sells Shares to Cover Tax
Neutral
Mar 19, 2026
Travis Perkins has disclosed that its Chief Financial Officer, Duncan Cooper, has exercised 13,973 nil‑cost options granted under the company’s restricted share plan as part of a 2023 CFO buyout deferred share bonus award. Following th...
Financial DisclosuresRegulatory Filings and Compliance
Travis Perkins Publishes 2025 Annual Report and Accounts
Neutral
Mar 17, 2026
Travis Perkins plc has published its Annual Report and Accounts for the year ended 31 December 2025, following the earlier release of its full-year results. The report is available for investors and stakeholders to view or download on the company&...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
Travis Perkins profits slide but balance sheet strengthens as new CEO takes charge
Negative
Mar 17, 2026
Travis Perkins reported 2025 revenue of £4.57bn, down 0.9%, with adjusted operating profit falling 12.5% to £133m as weaker merchanting volumes, sharper pricing and promotions weighed on margins, although group like-for-like sales inched...
Executive/Board Changes
Travis Perkins CFO Duncan Cooper Takes Non-Executive Role at Unite Group
Positive
Feb 24, 2026
Travis Perkins has disclosed that its Chief Financial Officer, Duncan Cooper, has been appointed a Non-executive Director at Unite Group, a major U.K. student accommodation provider. He will also become chair-designate of Unite’s Audit and R...
Executive/Board ChangesRegulatory Filings and Compliance
Travis Perkins Confirms Appointment of Gavin Slark as Chief Executive Officer
Neutral
Jan 2, 2026
Travis Perkins plc has confirmed that Gavin Slark has joined its Board as Chief Executive Officer with effect from 1 January 2026, finalising a leadership transition first announced in May 2025. The company also disclosed, in line with listing req...
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.