Travis PerkinsLSE:TPK -1.03%71 Gross Margin % is 25.87% as of Dec. 2025, which is 9% below its 10-year median of 28.28. GuruFocus rates LSE:TPK with a GF Score™ of 71/100 and a GF Value™ of £7.12 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 153 Industrial Distribution companies, Travis Perkins ranks better than 52.29% on this metric.
Travis Perkins PLC gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Travis Perkins's Gross Margin % or its related term are showing as below:
LSE:TPK'
s Gross Margin % Range Over the Past 10 Years
Min: 26.13 Med: 28.28 Max: 29.79
Current: 26.13
During the past 13 years, the highestGross Margin % of Travis Perkins was 29.79%. The lowest was 26.13%. And the median was 28.28%.
LSE:TPK's Gross Margin % is ranked better than 52.29% of 153
companies
in the Industrial Distribution industry
Industry Median: 24.34
vs LSE:TPK: 26.13
Travis Perkins had a gross margin of 25.87% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Travis Perkins was -1.80% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Travis Perkins had a gross margin of 25.87% for the quarter that ended in Dec. 2025 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Travis Perkins Gross Margin % Related Terms
Travis Perkins Gross Margin % Historical Data
* Premium members only.
The historical data trend for Travis Perkins's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:TPK vs GWW, FAST, FERG: Gross Margin % Comparison
For the Industrial Distribution subindustry, Travis Perkins's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Travis Perkins Gross Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Travis Perkins's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Travis Perkins's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Travis Perkins (LSE:TPK) has a Gross Margin % of 25.87% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Travis Perkins and its competitors. This is near median its historical median of 28.28. Over the past decade, Travis Perkins' Gross Margin % has ranged from 26.13 to 29.79. According to the industry distribution chart, Travis Perkins ranks #73 out of 153 companies in the Industrial Distribution industry, placing it in the top 47.7%.
Is Travis Perkins' Gross Margin % too high?
Travis Perkins' current Gross Margin % of 25.87% is near median its 10-year median of 28.28. Over the past 10 years, this metric has ranged from a low of 26.13 to a high of 29.79. The Industrial Distribution industry median Gross Margin % is 24.34. Travis Perkins' value of 25.87% is 6.3% above this industry median. Based on the distribution chart, Travis Perkins ranks #73 out of 153 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Travis Perkins has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Travis Perkins' Gross Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Travis Perkins ranks #73 out of 153 companies for Gross Margin %. This puts Travis Perkins in the upper half of its industry. The industry median Gross Margin % is 24.34. Travis Perkins' value of 25.87% is 6.3% above this benchmark. Historically, Travis Perkins' own Gross Margin % has ranged from 26.13 to 29.79 over the past decade. While the company's 10-year median is 28.28 vs. the industry median of 24.34, Travis Perkins has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Distribution company?
The median Gross Margin % among Industrial Distribution companies is 24.34, based on 153 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Travis Perkins's current Gross Margin % of 25.87% is 6.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Travis Perkins and its competitors. For the Industrial Distribution industry, the median Gross Margin % is 24.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Travis Perkins's current Gross Margin % is 25.87%, which is near median its own 10-year median of 28.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Travis Perkins stock overvalued right now?
Based on GuruFocus' analysis, Travis Perkins (LSE:TPK) is currently considered Modestly Undervalued. The stock's GF Value™ is £7.12, compared to a current price of £5.76 — trading 19.2% below its estimated fair value. The current Gross Margin % is 25.87%, which is near median its 10-year median of 28.28 and 6.3% above the Industrial Distribution industry median of 24.34. Travis Perkins' overall GF Score™ is 71/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Travis Perkins (LSE:TPK), the current Gross Margin % is 25.87% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Travis Perkins (LSE:TPK) Overvalued in 2026?
Based on GuruFocus' analysis, Travis Perkins stock appears to be undervalued.
The current stock price of £5.76 is trading 19.2% below its estimated GF Value™ of £7.12.
GuruFocus considers Travis Perkins to be Modestly Undervalued.
Key valuation signals for LSE:TPK:
Gross Margin %: 25.87% (near median its 10-year median of 28.28)
GF Value™: £7.12 vs. price of £5.76 (19.2% below fair value)
Industry Position: 6.3% above the Industrial Distribution median (#73 of 153)
No single metric tells the full story. See the LSE:TPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Travis Perkins PLC makes and sells products to the construction and home improvement industries in the United Kingdom. It offers commercial and industrial heating and cooling solutions, air conditioning, refrigeration, heat pump equipment and installation materials, and interior building products, among others. The company organizes itself into two segments: Merchanting, which generates maximum revenue, and Toolstation. The Merchanting segment sells building materials at prices specifically negotiated with customers, with variation in the products offered in each branch. The Toolstation segment includes both the UK and Benelux businesses, and sells building materials at a fixed price, with a fixed range in each store. Geographically, the company mainly operates in the United Kingdom.
71GF Score
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