TRAVIS PERKINS

Analysis of Travis Perkins share price

--- Ad ---
BUY   SELL
76.4% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

To fine tune an effective investment strategy on the Travis Perkins share price you will need to be able to complete comprehensive and pertinent analyses of this asset. For these you will require relevant information about this company and its economic environment. This article will provide you with such information including a presentation of the company, details of its activities and major sources of revenue as well as information on the company’s major competitors, some examples of partnerships the company has recently implemented and the advantages and disadvantages of this asset as an investment. We will also explain the data and publications you will need to examine for completing a comprehensive fundamental analysis of this asset.

Elements that can influence the price of this asset:

Analysis N°1

Firstly we would attentively follow the launch of strategic initiatives aimed at improving the company’s business operations or its current range of products as these operations will enable the company to accelerate its growth and increase profitability.

Analysis N°2

The phenomenal growth of the industrial real estate industry is also a factor that should be taken into consideration before launching into trading in this asset. We would particularly follow the indicators relating to the demand and the movement of prices on this market.

Analysis N°3

The operations that enable Travis Perkins to develop its activities on an international level are also significant factors to examine during your analyses.

Analysis N°4

The signature of large scale contracts by this group is also information that should be taken into account.

Analysis N°5

Of course, we would also take into account the direct competitors of the Travis Perkins Company regarding their offers and presence on the market as well as the major events and financial results related to them.

Analysis N°6

Finally, the annual and quarterly financial results of this group should of course be carefully and attentively studied and ideally compared to the expectations of analysts and the objectives originally fixed by the group.

76.4% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500

General presentation of Travis Perkins

Let us now explore the Travis Perkins Company more in detail as well as the activity sector in which it operates with details of its services and major sources of revenue. You will thereby be in a better position to understand the challenges it faces and the company’s growth opportunities.

Travis Perkins is a British company that is specialised in the distribution of construction and renovation materials such as timber, bricks, cement, doors, paint, plasterboard, insulation products and other items such as plumbing supplies.

To better understand the activities exercised by the group it is possible to separate them according to the turnover generated by each type of activity:

  • The professional distribution of construction materials represents the largest part of the group’s activities with 53.5% of the turnover.
  • We then find the retail distribution of residential renovation products which represents 23.8% of the turnover.
  • Finally, the remainder of the group’s turnover, 22.7%, is achieved from the distribution of plumbing and heating materials.

The Travis Perkins Group currently achieves its entire turnover in the United Kingdom and distributes its products through a chain of around 2,090 stores implanted throughout this area.

Analysis of Travis Perkins share price
76.4% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500

The major competitors of Travis Perkins

Apart from knowing all about the Travis Perkins Company you will need to possess a good background knowledge of this company’s competitive environment. For this you need to know the company’s major competitors on the market so we will now examine the principal brands in this sector:

Adeo

Previously known under the name Leroy Merlin, this holding company is the third largest worldwide group in the consumer goods, construction and DIY sector. It is also part of the Mulliez family group which is the parent company of the Leroy Merlin brand. This group is also responsible for the operation of the medium sized DIY groups Weldom, Bricocenter, Zodio, Aki, Bricoman and Probox which is specialised in the sale of materials to building professionals.

Kingfisher 

This British company created in 1982 is specialised in the retail DIY and construction sector and operates mainly in the United Kingdom.

Hornbach

This is another DIY shop chain, German this time, which is specialised in the distribution of construction, DIY, and gardening products which belongs to the Hornbach Holding Group AG. This company currently operates 130 stores in Germany, the Czech Republic, Sweden, Austria, Luxembourg, Slovakia, Switzerland and Romania.

Intergamma

Finally we would also follow the Dutch company Intergamma which is specialised in the management of materials and equipment stores through the Gamma and Karwei brands. This company has existed since 1978.


The major partners of Travis Perkins

After examining all the major competitors of Travis Perkins we now offer you the opportunity to learn more about this company’s major allies with details on a few of its recent partnerships:

Google 

In 2017, the company notably formed a business partnership with the Google Cloud Platform for the use of the new Talend Data Fabric connectors that enabled a rapid analysis of the data from heterogenic sources in order to benefit from qualified data in real time. This collection of connectors enabled Travis Perkins to integrate, process, enrich and rapidly clean the data and execute high performance analytical searches in the Cloud and thereby obtain qualified information in real time. The native connectivity of Talend to various services in Google Cloud enables, among other things, an accelerated pipeline development of the Cloud data. Travis Perkins could thereby obtain the possibility of extracting pertinent and strategic information from a decision making point of view by analysing the structural and non-structural data.

London Metric Property

In 2015, the London Metric Property Company announced the trade with Travis Perkins of the sale of the Travis Perkins distribution factory of 170,000 square feet situated at Brackmills to CBRE Global Investors for the amount of 14.4 million pounds sterling. This factory was originally purchased for the amount of 9 million pounds sterling in 2013. London Metric reconfigured its rental for a new ten year period with a return on cost of 8%.

76.4% of retail investor accounts lose money when trading CFDs with this provider. Trade CFDs with Plus500
The factors in favour of a rise in the Travis Perkins share price:

To know if a share price on the stock market will probably rise or fall over the long term it is necessary to know its major advantages and disadvantages. This is why we now offer you the opportunity to learn about the strong and weak points of this company.

Let us start this comparison with details of the major strong points of Travis Perkins that should enable the company to progress and develop with a rising share price:

  • Firstly, the Travis Perkins Group benefits from long experience in the market as it has existed for over two centuries. This also shows that the company is capable of successfully adapting to different economic situations.
  • The Travis Perkins Group also benefits from a strong brand image with its clients with a high degree of credibility and confidence.
  • The expansion strategy of the Travis Perkins Group is also another of its strong points as the company tends to complete numerous strategic acquisition operations for its development.
  • The size of this company, which currently employs over 20,000 people and possesses nearly 2,000 points of sale in the United Kingdom also underlines its solidity against the competition.
  • Finally, the group is included in the FTSE 250 stock market Index which is composed of the share prices of the 250 largest British companies.
The factors in favour of a drop in the Travis Perkins share price:

Of course the Travis Perkins Group does not only offer advantages in terms of investment, there are also certain disadvantages. Here therefore are the company’s major weak points at present:

  • Firstly we are disappointed by the fact that this group is not present on the international market. This essentially leads to a higher exposure to risk in the case of an economic recession in the United Kingdom, whereas this company’s competitors are present in a number of countries which lessens the risk.
  • Finally, the second and last weak point of this company that we note is related to the direct competition in this activity sector which is very strong and implicates a limited part of this market and necessitates a strong competitiveness, notably concerning the sale prices, which does of course affect its profitability.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the last financial results published by Travis Perkins?

A financial analysis of the Travis Perkins Group forms part of the analyses that are essential before starting to trade in this asset. Concerning the recent publications of this group, to be exact, the 2019 financial results of the group, we note that the company achieved a turnover of 6,956 million GBP with a net result of 121 million GBP. Regarding its stock market capital we note that in 2020 this stood at 1,943 million GBP.

How is the capital of Travis Perkins divided?

In April 2020 according to the most recent information available at this time, the capital of the Travis Perkins Company was owned by the following: 6.17% by Pzena Investment Management, 5.05% by Ninety One, 5.03% by Harris Associates, 4.91% by Invesco Advisers, 4.89% by Sanderson Asset Management, 4.76% by Sprucegrove Investment Management, 3.16% by Dimensional Fund Advisors, 3.05% by The Vanguard Group, 2.98% by Legal & General Investment Management and 2.67% by BlackRock Investment Management. The remainder of this company’s capital is floating and therefore freely traded on the stock markets.

On which stock markets is the Travis Perkins share price quoted?

Travis Perkins shares are actually quoted on the Main Market of the LSE British Stock Exchange, otherwise known as the London Stock Exchange. Its quotation is continuously updated in real time, during the opening hours of this financial marketplace. We also note that the Travis Perkins share price is included in the renowned FTSE 250 stock market Index and this company is therefore one of the 250 largest companies in the United Kingdom in terms of stock market capital.

76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Trade CFDs with Plus500