Topps Tiles (TPT) AI Stock Analysis

• Market Cap: £63.72M
• Dividend Yield: 7.43%
• Average Volume (3M): 478.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -4.17%
• EPS Growth: -506.75%
• Country: UK
• Employees: 1,854
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Home Improvement
• EPS (TTM): -0.07
• Shares Outstanding: 196,681,820
• 10 Day Avg. Volume: 414,616
• 30 Day Avg. Volume: 478,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.25
• Price to Cash Flow (P/CF): 2.10
• P/FCF Ratio: 0.00
• 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: 42.00p
• Price Target Upside: 30.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

Topps Tiles' overall stock score reflects significant financial challenges, including declining revenues and high leverage, which present substantial risks. The technical analysis indicates a bearish trend, further pressuring the stock. While valuation concerns are present, the high dividend yield offers some attractiveness. The recent corporate development regarding the acquisition of CTD Tiles provides a positive outlook, potentially improving future operational performance.

Topps Tiles Business Overview & Revenue Model

Company Description

Topps Tiles PLC (TPT) is a leading tile specialist in the United Kingdom, primarily operating within the home improvement and building materials sectors. Founded in 1963, the company focuses on providing a wide range of wall and floor tiles, natural stone, laminate flooring, and associated accessories. With a substantial retail presence across the UK, Topps Tiles serves both trade professionals and direct consumers, offering products for residential and commercial projects.

How the Company Makes Money

Topps Tiles generates revenue primarily through the sale of tiles and related products, targeting both retail customers and professional tradespeople. The company's revenue model is based on direct sales in its physical stores, as well as online sales through its e-commerce platform. A significant portion of its earnings is derived from its extensive network of stores strategically located across the UK, which allows it to serve a broad customer base. Additionally, Topps Tiles benefits from partnerships with suppliers and manufacturers, enabling it to offer a vast selection of products while maintaining competitive pricing. The company also focuses on customer service and expertise, providing value-added services such as design consultations and installation advice, which help drive sales and foster customer loyalty.

Topps Tiles Financial Statement Overview

Summary

Topps Tiles faces a challenging financial position with declining revenues and profitability pressures. The high leverage and low equity position present significant risks. While cash flow generation remains relatively stable, the company must address its profitability and leverage to improve its financial health.

Income Statement

Topps Tiles experienced a notable decline in revenue and profitability compared to the previous year. The company reported a negative EBIT and net income, indicating significant challenges in maintaining profitability. Additionally, gross profit margin decreased slightly, reflecting potential cost pressures or pricing challenges.

Balance Sheet

The balance sheet highlights high leverage with a rising debt-to-equity ratio, indicating increased financial risk. Stockholders' equity has significantly declined, which could limit financial flexibility. The equity ratio is very low, highlighting potential solvency concerns.

Cash Flow

Despite challenges in profitability, Topps Tiles demonstrated a stable operating cash flow, which exceeds net income, providing some liquidity cushion. However, free cash flow has declined from the previous year, indicating potential constraints on capital allocation.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
255.18M	251.76M	262.71M	247.24M	228.00M	192.81M
	Gross Profit
135.24M	134.32M	139.25M	126.57M	122.17M	107.97M
	EBIT
9.53M	-11.42M	11.11M	21.14M	28.37M	8.70M
	EBITDA
31.34M	12.23M	35.46M	39.28M	45.08M	22.77M
	Net Income Common Stockholders
529.00K	-13.03M	3.21M	9.01M	10.65M	-7.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.32M	23.68M	23.37M	16.24M	27.79M	31.02M
	Total Assets
164.38M	167.40M	174.40M	180.82M	188.07M	205.08M
	Total Debt
89.41M	100.96M	94.50M	102.93M	111.34M	129.14M
	Net Debt
70.09M	77.28M	71.13M	86.69M	83.55M	98.12M
	Total Liabilities
144.64M	161.82M	148.01M	151.78M	163.11M	191.03M
	Stockholders Equity
16.35M	5.58M	23.21M	26.58M	24.96M	14.08M
Cash Flow		Free Cash Flow
23.93M	19.30M	32.98M	19.71M	22.09M	44.38M
	Operating Cash Flow
28.00M	23.77M	37.23M	22.92M	26.50M	51.09M
	Investing Cash Flow
-3.47M	-12.95M	-3.61M	-6.50M	-1.84M	12.11M
	Financing Cash Flow
-25.12M	-10.51M	-26.50M	-27.97M	-27.89M	-50.93M

Topps Tiles Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TPT, the sentiment is Neutral. The current price of 32.3 is above the 20-day moving average (MA) of 31.78, below the 50-day MA of 34.17, and below the 200-day MA of 39.43, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 47.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TPT.

Topps Tiles Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFRD	75 Outperform	£346.68M	8.79	35.97%	4.35%	22.39%	179.53%
KGF	69 Neutral	£4.26B	23.89	2.86%	5.16%	-2.09%	6.71%
WOSG	63 Neutral	£1.06B	25.83	7.71%	―	1.45%	-61.69%
Sector *	59 Neutral	$12.68B	11.14	0.97%	3.72%	1.33%	-21.21%
TPT	47 Neutral	£63.72M	―	-90.54%	7.43%	-4.17%	-506.75%
HEAD	41 Neutral	£73.18M	―	-12.15%	11.11%	-9.66%	-424.19%

Topps Tiles Corporate Events

Topps Tiles’ Acquisition of CTD Tiles Cleared by CMA

Topps Tiles announced that the Competition and Markets Authority (CMA) has approved in principle the company’s proposed remedies regarding the acquisition of the brand and certain assets of CTD Tiles, avoiding a Phase II investigation. This development is expected to positively impact Topps Tiles’ operations by facilitating the acquisition process and potentially strengthening its market position.

Topps Tiles Completes CTD Acquisition Amid CMA Approval

Topps Tiles announced the completion of its acquisition of CTD Tiles’ brand and assets, with the UK’s Competition and Markets Authority (CMA) finding no major competition concerns post-review. While the CMA identified potential issues in four localities, Topps Tiles is addressing these through proposed remedies, ensuring smooth continuation of its operations.

Topps Tiles Updates Share Capital and Voting Rights

Topps Tiles announced that its total issued share capital consists of 196,681,818 ordinary shares, with a total voting rights figure of 196,479,385, which shareholders can use for relevant calculations under the Financial Conduct Authority’s rules. The announcement also noted that the Employee Benefit Trust holds a portion of these shares to support future obligations under the company’s share plans, with voting rights and dividends waived for these shares.

Topps Tiles AGM Resolutions Passed with Varied Support

Topps Tiles Plc announced that all resolutions at its Annual General Meeting were passed, although some received less than 80% approval. The company plans to engage with shareholders to address concerns over these resolutions, reflecting its commitment to corporate governance and shareholder relations.

Topps Tiles Reports Strong Q1 Growth and Announces CEO Succession

Topps Tiles Plc reported a strong start to the financial year, with significant sales growth in the first quarter, driven by its trade and digital channels. The company’s ‘Mission 365’ strategy is showing promising results, with a focus on improving digital experiences, expanding product categories, and increasing B2B sales. As part of a planned transition, CEO Rob Parker announced his retirement, and a search for a successor is underway, marking a significant leadership change for the company.