Travis Perkins, to invest, or not?
Travis Perkins Share Price is a British company that operates in the building materials and home improvement markets. It is one of the largest suppliers of building materials and products in the UK. The company was founded in 1988 and is headquartered in Northampton, England.
Travis Perkins operates through various brands and subsidiaries, including Travis Perkins, Wickes, Toolstation, Keyline, City Plumbing Supplies, and CCF. These brands cater to different segments of the construction and home improvement industries, offering a wide range of products such as building materials, plumbing supplies, tools, kitchen and bathroom fittings, and more.
The company serves both trade professionals, such as builders, plumbers, and contractors, as well as individual customers undertaking DIY projects. Travis Perkins has a network of over 2,000 branches across the UK, providing convenient access to its products and services.
In recent years, Travis Perkins has been focusing on its core businesses and streamlining its operations. In 2018, it announced plans to simplify its group structure by demerging its plumbing and heating business, which resulted in the creation of a new company called Ferguson plc. This move allowed Travis Perkins to concentrate on its general merchanting and home improvement businesses.
Travis Perkins stock price has been on an extreme up and down in the past five years. Its highest stock price reached 1,900.28GBX in June of 2021, while its lowest was at 681.42GBX in April 2020. The significant drop from 1,607.01GBX in February 2020 is understandable as it was during the pandemic.
Today, Travis Perkins’ share price opened at 893.20GBX and closed at 885.16GBX. This may not be as high as its price in 2021, this is quite a good price compared to other companies.
Who is Travis Perkins?
Travis Perkins plc has an interesting history that dates back to the late 18th century. The company’s roots can be traced back to 1797 when Benjamin Ingram established a timber business in Northampton, England. This business eventually became known as Ingram, Perkins & Co.
In 1988, the company merged with Travis & Arnold, a timber and builders’ merchant based in London, forming Travis Perkins plc. The merger brought together two well-established companies with a long history in the building materials industry.
Following the merger, Travis Perkins plc embarked on a period of expansion and acquisition, gradually becoming one of the largest suppliers of building materials in the UK. Over the years, the company acquired several businesses, including Keyline Builders Merchants, BSS Group, and Wickes, which significantly expanded its product range and market presence.
Wickes, in particular, has become one of the most recognizable brands under the Travis Perkins umbrella. Originally founded in the 1970s as a DIY store, Wickes grew rapidly and was acquired by Travis Perkins in 2005. It operates as a separate retail brand, offering a wide range of home improvement products to both trade professionals and DIY enthusiasts.
Today, Travis Perkins plc continues to be a prominent player in the building materials and home improvement industry, serving customers across the UK through its extensive network of branches and online platforms.
Travis Perkins’ Main Competitors
Travis Perkins plc faces competition from several key players in the building materials and home improvement industry. These competitors include:
- Saint-Gobain: Saint-Gobain is a multinational corporation based in France and is one of the largest suppliers of construction materials worldwide. The company operates in various segments, including building distribution, which encompasses a wide range of products such as insulation, gypsum, and plumbing supplies.
- Wolseley: Wolseley, now known as Ferguson plc, is a global distributor of plumbing and heating products, as well as building materials. The company operates in multiple regions, including the UK, North America, and Europe, and serves both trade professionals and retail customers.
- Kingfisher plc: Kingfisher is a British multinational retail company that owns several well-known home improvement retail brands, including B&Q and Screwfix. These brands offer a comprehensive range of products for home improvement projects, competing directly with Travis Perkins’ retail brand, Wickes.
- Grafton Group: Grafton Group is an Irish building materials supplier with operations in the UK, Ireland, the Netherlands, and Belgium. The company operates through various subsidiaries, including Buildbase, Selco Builders Warehouse, and Plumbase, which compete with Travis Perkins’ different business segments.
- Jewson: Jewson is a leading builders’ merchant in the UK and is part of the Saint-Gobain group. It operates a network of branches nationwide, offering a wide range of building materials and supplies to both trade and retail customers, making it a direct competitor to Travis Perkins.
These are just a few of the main competitors that Travis Perkins plc faces in the highly competitive building materials and home improvement market. The industry is dynamic, with new entrants and changing market dynamics continually shaping the competitive landscape.
Travis Perkins Investment Advantages
Investing in Travis Perkins plc may be appealing for several reasons. Firstly, the company is a major player in the UK building materials and home improvement market, with a strong brand presence and an extensive network of branches. It has a long history in the industry, dating back to the late 18th century, which demonstrates its resilience and ability to adapt to market changes.
Secondly, Travis Perkins operates through a diverse portfolio of brands and subsidiaries, catering to different segments of the construction and DIY markets. This diversification allows the company to capture a broad customer base and mitigate risks associated with fluctuations in specific sectors.
Furthermore, the company’s focus on trade professionals and the DIY market positions it well to benefit from ongoing trends in the housing and construction sectors. As the UK continues to see demand for housing and renovation projects, Travis Perkins is well-positioned to supply the necessary building materials and products.
Additionally, Travis Perkins has been implementing strategic initiatives to streamline its operations and improve efficiency. This includes the demerger of its plumbing and heating business into Ferguson plc, allowing the company to concentrate on its core merchanting and home improvement businesses. Such efforts can lead to improved profitability and shareholder value.
Lastly, Travis Perkins has demonstrated a commitment to sustainability and responsible business practices. It has set environmental targets, such as reducing carbon emissions and waste, which align with growing consumer demand for sustainable products and practices. This focus on sustainability can contribute to the company’s long-term viability and appeal to socially conscious investors.
As with any investment, it is essential to conduct thorough research and analysis, considering factors such as the overall market conditions, financial performance, and industry dynamics before making an investment decision.