Travis Perkins Plc (TPK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Victorian Plumbing Group Plc

Kingfisher plc

Topps Tiles Plc

Travis Perkins Plc

Why is Travis Perkins Plc ?

Poor Management Efficiency with a low ROCE of 7.41%

The company has been able to generate a Return on Capital Employed (avg) of 7.41% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -8.18% and Operating profit at 9.74% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.94%, its profits have risen by 1196.5% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.94% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Travis Perkins Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Travis Perkins Plc

-5.05%

-1.99

33.56%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.18%

EBIT Growth (5y)

9.74%

EBIT to Interest (avg)

3.91

Debt to EBITDA (avg)

0.94

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.85

Tax Ratio

5.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

7.41%

ROE (avg)

5.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.66

EV to EBIT

12.39

EV to EBITDA

4.99

EV to Capital Employed

0.69

EV to Sales

0.33

PEG Ratio

0.01

Dividend Yield

2.16%

ROCE (Latest)

5.59%

ROE (Latest)

4.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2,616% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 35.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 5.12 times

NET PROFIT(Q)

At GBP 25.69 MM has Grown at 80.64%

-3What is not working for the Company

DIVIDEND PER SHARE(HY)

Lowest at GBP 5.91

INTEREST(Q)

Highest at GBP 28.3 MM

PRE-TAX PROFIT(Q)

Fallen at -23.52%

Here's what is working for Travis Perkins Plc

Net Profit

At GBP 25.69 MM has Grown at 80.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Debt-Equity Ratio

Lowest at 35.58 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 5.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2,616% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Travis Perkins Plc

Interest

Highest at GBP 28.3 MM

in the last five periods and Increased by 18.91% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Fallen at -23.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Dividend per share

Lowest at GBP 5.91

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)