Persimmon (PSN) AI Stock Analysis

• Market Cap: £3.81B
• Dividend Yield: 4.96%
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.89
• Revenue Growth: 15.42%
• EPS Growth: 4.45%
• Country: UK
• Employees: 4,731
• Sector: Consumer Cyclical
• Sector Strength: 54
• Industry: Residential Construction
• EPS (TTM): 0.83
• Shares Outstanding: 320,164,580
• 10 Day Avg. Volume: 1,723,808
• 30 Day Avg. Volume: 2,487,697
• PEG Ratio: 3.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.31
• Price to Cash Flow (P/CF): -57.30
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 1,487.60p
• Price Target Upside: 26.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Persimmon's overall stock score is driven by its solid financial performance, marked by revenue and profit recovery, and a strong balance sheet with no debt. The technical analysis suggests neutral to slight bearish momentum, while the valuation offers a fair P/E ratio and a high dividend yield, making it appealing to income-focused investors. Recent corporate events emphasize a positive outlook, further supporting the score.

Positive Factors

Earnings

Persimmon's full year adjusted PBT was 3% better than consensus and 10% up year-on-year, marking the first results to show year-on-year progress this cycle.

Market Position

Persimmon remains a preferred stock in an oversold sector.

Sales Performance

Persimmon has reported that its private order book is up by 26%, delivered by achieving a private sales rate of 0.70 per site per week, up from 0.58 in 2023.

Negative Factors

Future Outlook

Persimmon has not offered much on the 2025 outlook, other than it is well positioned, with its order book up 26% and running on 5% more sites.

Persimmon Business Overview & Revenue Model

Company Description

Persimmon Plc is a leading British housebuilding company, primarily engaged in the construction and sale of residential properties across the United Kingdom. Established in 1972, Persimmon operates under various brand names, including Persimmon Homes, Charles Church, and Westbury Partnerships, targeting a wide range of customer segments from first-time buyers to upscale market clients. The company is headquartered in York, England, and is one of the largest homebuilders in the UK, known for its commitment to quality and customer service.

How the Company Makes Money

Persimmon makes money primarily through the sale of newly constructed residential properties. The company's revenue model is based on acquiring land, developing it into residential sites, and selling the completed homes to customers. Key revenue streams include the direct sale of homes to individuals and housing associations, as well as contracts with local authorities and other partners for larger development projects. Persimmon benefits from the UK government's support for home ownership, such as the Help to Buy scheme, which has historically driven demand. Additionally, the company strategically manages its land bank to ensure a steady supply for future developments, which is crucial for sustaining its revenue growth. The firm's focus on cost-efficiency in construction processes and supply chain management also contributes significantly to its profitability.

Persimmon Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.90B	2.77B	3.82B	3.61B	3.33B	3.65B
	Gross Profit
521.50M	795.10M	867.50M	1.08B	894.40M	1.13B
	EBIT
351.70M	346.90M	722.00M	960.70M	783.60M	1.02B
	EBITDA
650.00M	381.00M	738.20M	973.50M	799.30M	1.06B
	Net Income Common Stockholders
256.40M	255.40M	561.00M	787.20M	638.40M	848.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.05B	420.10M	861.60M	1.25B	1.23B	843.90M
	Total Assets
4.65B	4.79B	5.03B	4.79B	4.62B	4.49B
	Total Debt
0.00	392.70M	498.00M	436.90M	362.60M	481.20M
	Net Debt
-1.05B	-420.10M	-363.60M	-809.70M	-871.50M	-362.70M
	Total Liabilities
1.46B	1.37B	1.59B	1.17B	1.10B	1.23B
	Stockholders Equity
3.19B	3.42B	3.44B	3.63B	3.52B	3.26B
Cash Flow		Free Cash Flow
80.60M	-166.20M	371.80M	763.90M	746.60M	592.50M
	Operating Cash Flow
110.30M	-129.80M	402.30M	784.80M	765.50M	620.00M
	Investing Cash Flow
-46.00M	-42.90M	-29.80M	-18.20M	-18.10M	-25.90M
	Financing Cash Flow
-71.10M	-268.80M	-757.50M	-754.10M	-357.20M	-798.30M

Persimmon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1180.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PSN, the sentiment is Negative. The current price of 1180.5 is below the 20-day moving average (MA) of 1190.30, below the 50-day MA of 1214.30, and below the 200-day MA of 1383.41, indicating a bearish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 53.08 is Neutral, neither overbought nor oversold. The STOCH value of 47.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PSN.

Persimmon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKG	71 Outperform	£3.61B	10.00	11.03%	1.85%	0.39%	-17.64%
PSN	69 Neutral	£3.81B	14.26	7.71%	4.96%	15.42%	4.45%
GLE	68 Neutral	£274.57M	16.58	5.65%	2.34%	13.91%	-2.75%
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%
CRST	54 Neutral	£419.76M	―	-13.06%	1.34%	-5.98%	-677.54%

Persimmon Corporate Events

Persimmon Plc Announces Current Share Capital and Voting Rights

Persimmon Plc has announced that as of March 31, 2025, its share capital consists of 320,164,589 ordinary shares, with no shares held in Treasury. This total number of voting rights is crucial for shareholders to calculate their interests and obligations concerning the company, impacting their decision-making and engagement with Persimmon.

Persimmon Plc Grants Share Awards to Executive Leadership

Persimmon Plc announced the granting of share awards to its Group Chief Executive, Dean Finch, and Chief Financial Officer, Andrew Duxbury, under the company’s 2020 Deferred Bonus Plan. These awards, comprising 59,854 and 31,122 shares respectively, are part of the deferred elements of their annual bonuses and are set to vest after a three-year period, aligning with the company’s strategic incentives for its executive leadership.

Persimmon Plc Announces Executive Share Awards and Transactions

Persimmon Plc has announced the granting of share awards to its Group Chief Executive, Dean Finch, and Chief Financial Officer, Andrew Duxbury, under the 2017 Performance Share Plan. The awards, which cover 135,040 and 88,621 shares respectively, are part of a three-year performance period ending in 2027, with a subsequent two-year holding period. Additionally, Dean Finch acquired and sold shares to cover tax liabilities from previous awards, reflecting ongoing executive incentives aligned with company performance. These transactions highlight Persimmon’s commitment to aligning executive compensation with long-term company performance, potentially impacting shareholder value and market perception.

Persimmon Plc Reports Strong Growth in 2024 with Positive Outlook for 2025

Persimmon Plc reported strong financial results for the year ended December 31, 2024, with a 7% increase in new home completions and a 14% rise in underlying operating profit. The company achieved a 13% increase in new housing revenue and improved its customer satisfaction score to 96%. Looking ahead, Persimmon is targeting further growth in completions, profit, and operating margins in 2025, supported by a robust forward order book and favorable market conditions. The company’s strategic focus on land investment and operational enhancements, along with government planning reforms, provides a positive outlook for continued growth and shareholder value.

BlackRock Reduces Stake in Persimmon PLC

Persimmon PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc., a U.S.-registered company. As of February 28, 2025, BlackRock’s total voting rights in Persimmon have decreased from 9.93% to 5.01%, indicating a significant reduction in their stake. This change could impact Persimmon’s shareholder dynamics and influence within the company, potentially affecting its strategic decisions and market position.

Persimmon Plc Updates on Share Capital and Voting Rights

Persimmon Plc announced that as of January 31, 2025, its share capital consists of 319,915,905 ordinary shares, each valued at 10p. The company holds no shares in treasury, meaning the total voting rights also amount to 319,915,905. This figure serves as a reference for shareholders to determine and notify any changes in their interest in the company, impacting how voting rights and shareholder interests are managed.

Persimmon PLC Reports Robust Growth and Strong Positioning for 2025

Persimmon PLC announced a successful year with a 7% increase in home completions, exceeding market expectations. The company expects its underlying profit before tax to be at the upper end of forecasts, supported by strategic land investments and planning reforms. With a strong forward sales position and enhanced land bank, Persimmon is well-positioned for future growth, despite macroeconomic uncertainties and sector challenges.

Persimmon Plc Reveals Share Capital Structure

Persimmon Plc announced its share capital structure as of December 31, 2024, stating that it comprises 319,914,868 ordinary shares with no shares held in Treasury. This announcement provides shareholders with the necessary denominator to determine if they need to notify any changes in their interest in the company.