Persimmon PLC (GB:PSN)
LSE:PSN
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Persimmon
(LSE:PSN)
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Rating:58Neutral
Price Target:
1,111.00 p
â–¼(-7.65% Downside)
Action:DowngradedDate: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 / strong balance sheet
Extremely low debt and a sizable equity base provide durable financial flexibility for a cyclical housebuilder. This reduces refinancing and interest-rate risk, supports land acquisition and site investment, and cushions cashflows through housing cycles over the next 2–6 months and beyond.
Negative Factors
Significant gross margin compression
A large, structural drop in gross margin materially reduces pricing power and profitability per home. Lower margins constrain reinvestment, reduce buffer against cost inflation, and imply a permanent reset in return profiles unless build costs or pricing recover materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low debt and a sizable equity base provide durable financial flexibility for a cyclical housebuilder. This reduces refinancing and interest-rate risk, supports land acquisition and site investment, and cushions cashflows through housing cycles over the next 2–6 months and beyond.
Read all positive factors
Persimmon (PSN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.74B
Dividend Yield4.54%
Average Volume (3M)1.15M
Price to Earnings (P/E)15.2
Beta (1Y)1.52
Revenue Growth16.74%
EPS Growth-0.16%
CountryUK
Employees4,731
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.63
Shares Outstanding321,119,200
10 Day Avg. Volume1,225,972
30 Day Avg. Volume1,151,027
Financial Highlights & Ratios
PEG Ratio2.56
Price to Book (P/B)1.20
Price to Sales (P/S)1.16
P/FCF Ratio-362.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,461.25Price Target Upside21.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.02
Revenue Forecast (FY)£3.84B
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...
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...
Persimmon Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
88
Very Positive
Cash Flow
34
Negative
| 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
Neutral
1203.00
Price Trends
1290.23
Negative
1326.77
Negative
1237.15
Negative
Market Momentum
-27.83
Negative
53.94
Neutral
67.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PSN, the sentiment is Neutral. The current price of 1203 is above the 20-day moving average (MA) of 1124.33, below the 50-day MA of 1290.23, and below the 200-day MA of 1237.15, indicating a neutral trend. The MACD of -27.83 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 67.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:PSN.
Persimmon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | £3.27B | 5.48 | 10.20% | 6.38% | -6.44% | -0.03% | |
67 Neutral | £3.76B | 13.20 | 2.73% | 4.73% | 33.83% | 15.11% | |
63 Neutral | £3.00B | 37.90 | 2.40% | 8.95% | 4.21% | -65.57% | |
62 Neutral | £2.31B | 8.04 | 4.43% | 2.62% | 16.91% | 20.93% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £3.74B | 15.22 | 8.05% | 4.54% | 16.74% | -0.16% | |
54 Neutral | £1.12B | 15.19 | 4.20% | ― | -0.57% | -104.08% |
* Consumer Cyclical Sector Average
GB:PSN
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Persimmon Corporate Events
Regulatory Filings and Compliance
Persimmon Confirms Share Capital and Voting Rights Total
Neutral
Apr 1, 2026
Persimmon Plc has confirmed that as of 31 March 2026 its issued share capital comprises 321,119,193 ordinary shares of 10p each, with no shares held in treasury, resulting in an equal number of voting rights in the company. The disclosure clarifie...
Business Operations and Strategy
Persimmon Issues Shares to Satisfy Employee Awards
Neutral
Apr 1, 2026
Persimmon has issued and admitted to trading 379,543 ordinary shares of 10p each to satisfy vested awards under its employee share schemes. The new shares, fully fungible with existing stock, were allotted between 18 February and 31 March 2026 and...
Executive/Board ChangesRegulatory Filings and Compliance
Persimmon Grants Deferred Share Awards to Top Executives
Positive
Mar 30, 2026
Persimmon has granted share awards to Group Chief Executive Dean Finch and Chief Financial Officer Andrew Duxbury under its 2020 Deferred Bonus Plan, linked to the deferred element of their 2025 annual bonuses. Finch received an award over 55,031 ...
Executive/Board ChangesRegulatory Filings and Compliance
Persimmon grants new performance share awards to top executives
Positive
Mar 24, 2026
Persimmon has granted new long-term share awards to Group Chief Executive Dean Finch and Chief Financial Officer Andrew Duxbury under its 2017 Performance Share Plan. Finch received an award over 142,465 shares and Duxbury over 93,476 shares, with...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Persimmon Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 23, 2026
Persimmon has published its Annual Report for 2025 and the Notice of its 2026 Annual General Meeting, making them available to shareholders via the National Storage Mechanism and the company’s website. The documentation includes amended rule...
Business Operations and StrategyFinancial Disclosures
Persimmon lifts profits and pipeline as UK housing demand underpins outlook
Positive
Mar 10, 2026
Persimmon reported strong full-year 2025 results, with home completions up 12% to 11,905 and new housing revenue rising 16% to £3.31bn. Underlying operating profit increased 17% to £472.1m, margins edged higher, and all three brands grew...
Business Operations and StrategyDividendsFinancial Disclosures
Persimmon posts strong 2025 growth and flags further expansion in 2026
Positive
Mar 10, 2026
Persimmon reported strong full-year 2025 results, with new home completions rising 12% to 11,905 and new housing revenue up 16% to £3.31bn, lifting underlying profit before tax by 13% to £445.6m and operating margin to 14.3%. The group e...
Regulatory Filings and Compliance
Persimmon Confirms Share Capital and Voting Rights Total
Neutral
Mar 2, 2026
Persimmon plc has confirmed that as of 28 February 2026 its issued share capital comprises 320,747,413 ordinary shares of 10p each, with no shares held in treasury. As a result, the total number of voting rights in the company is 320,747,413, a ke...
Business Operations and StrategyRegulatory Filings and Compliance
Persimmon Issues New Shares to Satisfy Employee Awards, Lifts Share Capital to 320.7 Million
Neutral
Feb 18, 2026
Persimmon has issued and allotted 33,372 new ordinary shares of 10p each to satisfy vested awards under its employee share schemes, specifically the 2018 Savings Related Share Option Scheme and the 2017 Performance Share Plan. The new shares, admi...
Regulatory Filings and Compliance
Persimmon Confirms Share Capital and Voting Rights Total
Neutral
Feb 2, 2026
Persimmon plc has reported that, as of 31 January 2026, its issued share capital comprises 320,711,877 ordinary shares of 10 pence each, with no shares held in treasury, resulting in an identical total of 320,711,877 voting rights. The disclosed f...
Business Operations and StrategyFinancial Disclosures
Persimmon Delivers Double-Digit Volume Growth and Higher Prices in Tough 2025 Market
Positive
Jan 13, 2026
Persimmon reported a strong 2025 performance in a difficult housing market, with home completions rising 12% to 11,905 and underlying profit before tax expected at the upper end of market expectations, supported by an expanded outlet base and broa...
Regulatory Filings and Compliance
Persimmon Confirms 320.7 Million Voting Rights at Year-End 2025
Neutral
Jan 2, 2026
Persimmon plc has reported that as of 31 December 2025 its issued share capital comprised 320,681,126 ordinary shares of 10 pence each, with no shares held in treasury, resulting in an equal total of 320,681,126 voting rights. The disclosed voting...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.