Persimmon (PSN) AI Stock Analysis

• Market Cap: £3.45B
• Dividend Yield: 4.54%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.57
• Revenue Growth: 16.74%
• EPS Growth: -0.16%
• Country: UK
• Employees: 4,731
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.63
• Shares Outstanding: 320,747,400
• 10 Day Avg. Volume: 1,225,972
• 30 Day Avg. Volume: 1,151,027
• PEG Ratio: 2.56
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.16
• P/FCF Ratio: -362.38
• 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: £1,582.78
• Price Target Upside: 47.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.03
• Revenue Forecast (FY): £3.85B

• Rating: 58 Neutral
• Price Target: 1,319.00 p ▲(22.70% Upside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is held back primarily by deteriorated cash flow generation (negative 2025 free cash flow) and reduced profitability versus prior peak years, despite a very strong low-leverage balance sheet. Technical indicators are weak (below key moving averages with negative MACD), while a moderate P/E and ~4.7% dividend yield provide partial support.

Positive Factors

Very low leverage and sizable equity cushion

Extremely low net leverage and a sizable equity base provide durable financial flexibility for a cyclical homebuilder. This cushion supports land acquisition, withstands downturns without forced asset sales, and preserves strategic optionality across market cycles.

Negative Factors

Significant gross margin compression

A halving of gross margin over two years indicates structural pressure on pricing or materially higher build/land costs. Lower gross margins reduce operating leverage and limit the firm's ability to absorb cost inflation, making profitability more sensitive to volume swings.

Persimmon Business Overview & Revenue Model

Company Description

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; executive housing under the Charles Church brand name; and social housing und...

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Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; executive housing under the Charles Church brand name; and social housing und...

How the Company Makes Money

Persimmon makes money mainly by selling completed new-build homes. Its core revenue stream is private home completions: it acquires land (often through a land bank strategy), secures planning permission, develops sites, builds houses, and then rec...

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Persimmon makes money mainly by selling completed new-build homes. Its core revenue stream is private home completions: it acquires land (often through a land bank strategy), secures planning permission, develops sites, builds houses, and then rec...

Persimmon Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.75B	3.20B	2.77B	3.82B	3.61B
Gross Profit	576.70M	580.40M	795.10M	867.50M	1.08B
EBITDA	437.20M	393.00M	385.30M	738.20M	973.50M
Net Income	285.70M	267.10M	255.40M	561.00M	787.20M
Balance Sheet
Total Assets	5.32B	4.83B	4.79B	5.03B	4.79B
Cash, Cash Equivalents and Short-Term Investments	117.00M	258.60M	420.10M	861.60M	1.25B
Total Debt	16.80M	453.60M	392.70M	498.00M	436.90M
Total Liabilities	1.70B	1.33B	1.37B	1.59B	1.17B
Stockholders Equity	3.61B	3.51B	3.42B	3.44B	3.63B
Cash Flow
Free Cash Flow	-12.00M	52.60M	-166.20M	371.80M	763.90M
Operating Cash Flow	28.60M	84.90M	-129.80M	402.30M	784.80M
Investing Cash Flow	26.80M	-45.00M	-42.90M	-29.80M	-18.20M
Financing Cash Flow	-197.00M	-201.40M	-268.80M	-757.50M	-754.10M

Persimmon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1075.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1075 is below the 20-day moving average (MA) of 1217.90, below the 50-day MA of 1366.75, and below the 200-day MA of 1247.08, indicating a bearish trend. The MACD of -84.58 indicates Positive momentum. The RSI at 25.18 is Positive, neither overbought nor oversold. The STOCH value of 22.19 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	70 Outperform	£3.22B	5.48	10.20%	6.38%	-6.44%	-0.03%
BTRW	67 Neutral	£3.60B	13.20	2.73%	4.73%	33.83%	15.11%
TW	63 Neutral	£3.06B	37.90	2.40%	8.95%	4.21%	-65.57%
BWY	62 Neutral	£2.10B	8.04	4.45%	2.62%	16.91%	20.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PSN	58 Neutral	£3.45B	15.22	8.05%	4.54%	16.74%	-0.16%
VTY	54 Neutral	£1.09B	15.19	4.20%	―	-0.57%	-104.08%

Persimmon Corporate Events