Travis Perkins plc
Travis Perkins plc Fundamental Analysis
Travis Perkins plc (TVPKF) shows weak financial fundamentals with a PE ratio of -7.45, profit margin of -3.86%, and ROE of -9.35%. The company generates $4.5B in annual revenue with weak year-over-year growth of -0.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TVPKF's fundamental strength across five key dimensions:
Efficiency Score
WeakTVPKF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTVPKF trades at attractive valuation levels.
Growth Score
WeakTVPKF faces weak or negative growth trends.
Financial Health Score
ExcellentTVPKF maintains a strong and stable balance sheet.
Profitability Score
WeakTVPKF struggles to sustain strong margins.
Key Financial Metrics
Is TVPKF Expensive or Cheap?
P/E Ratio
TVPKF trades at -7.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TVPKF's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Travis Perkins plc at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.92 times EBITDA. This is generally considered low.
How Well Does TVPKF Make Money?
Net Profit Margin
For every $100 in sales, Travis Perkins plc keeps $-3.86 as profit after all expenses.
Operating Margin
Core operations generate 2.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.35 in profit for every $100 of shareholder equity.
ROA
Travis Perkins plc generates $-4.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Travis Perkins plc generates limited operating cash flow of $349.98M, signaling weaker underlying cash strength.
Free Cash Flow
Travis Perkins plc produces free cash flow of $276.60M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.31 in free cash annually.
FCF Yield
TVPKF converts 21.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-7.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.09
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How TVPKF Stacks Against Its Sector Peers
| Metric | TVPKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -7.45 | 25.96 | Better (Cheaper) |
| ROE | -9.35% | 1263.00% | Weak |
| Net Margin | -3.86% | -41827.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.72 | 10.05 | Neutral |
| ROA | -4.63% | -1497918.00% (disorted) | Weak |
TVPKF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Travis Perkins plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-724.78%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-23.62%
Industry Style: Cyclical, Value, Infrastructure
Declining