Travis PerkinsLSE:TPK -1.48%71 Operating Margin % is 2.90% as of Dec. 2025, which is 6% below its 10-year median of 3.07. 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 157 Industrial Distribution companies, Travis Perkins ranks worse than 67.52% on this metric.
Travis Perkins PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Travis Perkins's Operating Margin % or its related term are showing as below:
LSE:TPK'
s Operating Margin % Range Over the Past 10 Years
Min: -0.81 Med: 3.07 Max: 6.28
Current: 2.89
LSE:TPK's Operating Margin % is ranked worse than 67.52% of 157
companies
in the Industrial Distribution industry
Industry Median: 4.74
vs LSE:TPK: 2.89
Travis Perkins's 5-Year Average Operating Margin % Growth Rate was 32.70% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Travis Perkins Operating Margin % Related Terms
Travis Perkins Operating Margin % Historical Data
* Premium members only.
The historical data trend for Travis Perkins's Operating 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: Operating Margin % Comparison
For the Industrial Distribution subindustry, Travis Perkins's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Travis Perkins's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Travis Perkins's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Travis Perkins's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Travis Perkins (LSE:TPK) has a Operating Margin % of 2.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Travis Perkins and its competitors. This is near median its historical median of 3.07. According to the industry distribution chart, Travis Perkins ranks #106 out of 157 companies in the Industrial Distribution industry, placing it in the top 67.5%.
Is Travis Perkins' Operating Margin % too high?
Travis Perkins' current Operating Margin % of 2.90% is near median its 10-year median of 3.07. The Industrial Distribution industry median Operating Margin % is 4.74. Travis Perkins' value of 2.90% is 38.8% below this industry median. Based on the distribution chart, Travis Perkins ranks #106 out of 157 companies in the Industrial Distribution industry, which is below 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' Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Travis Perkins ranks #106 out of 157 companies for Operating Margin %. This places Travis Perkins in the lower half of its industry. The industry median Operating Margin % is 4.74. Travis Perkins' value of 2.90% is 38.8% below this benchmark. While the company's 10-year median is 3.07 vs. the industry median of 4.74, Travis Perkins has consistently been below 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 Operating Margin % for an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.74, based on 157 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Travis Perkins's current Operating Margin % of 2.90% is 38.8% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Travis Perkins and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Travis Perkins's current Operating Margin % is 2.90%, which is near median its own 10-year median of 3.07. 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 £5.34 — trading 25.1% below its estimated fair value. The current Operating Margin % is 2.90%, which is near median its 10-year median of 3.07 and 38.8% below the Industrial Distribution industry median of 4.74. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Travis Perkins (LSE:TPK), the current Operating Margin % is 2.90% 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 £5.34 is trading 25.1% below its estimated GF Value™ of £7.12.
GuruFocus considers Travis Perkins to be Modestly Undervalued.
Key valuation signals for LSE:TPK:
Operating Margin %: 2.90% (near median its 10-year median of 3.07)
GF Value™: £7.12 vs. price of £5.34 (25.1% below fair value)
Industry Position: 38.8% below the Industrial Distribution median (#106 of 157)
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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