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Persimmon
(LSE:PSN)
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Rating:58Neutral
Price Target:
1,039.00 p
▼(-13.63% Downside)
Action:Downgraded
Date: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 leverage and a sizable equity base (~£3.6B vs assets ~£5.3B) provide a durable capital cushion for a cyclical housebuilder. This financial strength supports continued land investment, dividend capacity and resilience across a 2–6 month horizon of market volatility.
Negative Factors
Material margin compression
Gross margin roughly halved versus recent peaks, materially reducing per-unit profitability. This structural compression weakens earnings power, limits reinvestment capacity and dividend support, and raises sensitivity to any future build-cost or land-price inflation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Extremely low leverage and a sizable equity base (~£3.6B vs assets ~£5.3B) provide a durable capital cushion for a cyclical housebuilder. This financial strength supports continued land investment, dividend capacity and resilience across a 2–6 month horizon of market volatility.
Read all positive factors
Persimmon (PSN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.43B
Dividend Yield4.54%
Average Volume (3M)1.15M
Price to Earnings (P/E)11.8
Beta (1Y)1.58
Revenue Growth17.20%
EPS Growth6.80%
CountryUK
Employees4,731
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)0.89
Shares Outstanding321,240,940
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
£2,557.70Price Target Upside112.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1
Revenue Forecast (FY)£3.84B
Persimmon Business Overview & Revenue Model
Company Description
Operating across the United Kingdom, Persimmon Plc, through its subsidiaries, is a leading residential developer. The company constructs various types of homes, including family properties under the Persimmon Homes brand, executive residences thro...
How the Company Makes Money
Persimmon makes money primarily by building and selling new homes in the UK. Its main revenue stream is the sale of completed residential properties to private buyers and, where applicable, to other channels such as bulk sales; revenue is generall...
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 | 616.50M | 580.40M | 795.10M | 867.50M | 1.08B |
| EBITDA | 431.10M | 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
Positive
1203.00
Price Trends
1043.18
Positive
1106.70
Negative
1183.99
Negative
Market Momentum
-0.32
Positive
50.43
Neutral
65.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PSN, the sentiment is Positive. The current price of 1203 is above the 20-day moving average (MA) of 1058.80, above the 50-day MA of 1043.18, and above the 200-day MA of 1183.99, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.09B | 10.02 | 10.20% | 6.38% | -4.15% | -10.17% | |
67 Neutral | £3.99B | 17.98 | 2.73% | 4.73% | 28.95% | 43.50% | |
63 Neutral | £2.80B | 28.33 | 2.40% | 8.95% | 13.04% | -54.27% | |
62 Neutral | £2.15B | 14.25 | 4.43% | 2.62% | 13.29% | 7.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | £3.43B | 11.83 | 8.05% | 4.54% | 17.20% | 6.80% | |
58 Neutral | £801.34M | 6.05 | 4.20% | ― | -4.38% | 100.09% |
* Consumer Cyclical Sector Average
GB:PSN
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Persimmon Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Persimmon Adds 48,838 Shares to Fulfil Employee Awards
Neutral
Jul 1, 2026
Persimmon Plc has issued and admitted to trading 48,838 new ordinary shares of 10p each during June 2026 to satisfy vested awards under its employee share schemes. Following this issuance, the total number of Persimmon ordinary shares admitted to ...
Regulatory Filings and Compliance
Persimmon Confirms Total Voting Rights and Share Capital Structure
Neutral
Jul 1, 2026
Persimmon has confirmed that, as of 30 June 2026, its issued share capital comprises 321,240,932 ordinary shares of 10 pence each, with no shares held in treasury, resulting in an equal number of voting rights. The disclosure clarifies the current...
Other
Persimmon Adds 18,607 Shares to Cover Employee Awards
Neutral
Jun 1, 2026
Persimmon has issued and admitted to trading 18,607 new ordinary shares during May 2026 to satisfy vested awards under its employee share schemes, specifically the 2017 Performance Share Plan. The additional shares, admitted under existing block a...
Regulatory Filings and Compliance
Persimmon Confirms Total Voting Rights at 321.2 Million Shares
Neutral
Jun 1, 2026
Persimmon Plc reported that as of 31 May 2026 its issued share capital comprised 321,192,094 ordinary shares, all carrying voting rights, with no shares held in treasury. This disclosure sets the official total voting rights figure that shareholde...
Regulatory Filings and Compliance
Persimmon CEO Restructures Shareholding Without Changing Overall Stake
Neutral
May 29, 2026
Persimmon has disclosed that Group Chief Executive Dean Finch has restructured part of his equity position, purchasing 60,000 Persimmon shares within his personal pension while selling an equivalent number held in his own name at prices of around ...
Business Operations and StrategyRegulatory Filings and Compliance
Persimmon Adds Shares to Cover Employee Performance Awards
Neutral
May 1, 2026
Persimmon has issued and admitted to trading 54,294 new ordinary shares of 10p each to satisfy vested awards under its 2017 Performance Share Plan for employees. The additional stock, which is fully fungible with existing shares and was admitted a...
Regulatory Filings and Compliance
Persimmon Confirms Total Voting Rights at Over 321 Million Shares
Neutral
May 1, 2026
Persimmon Plc has confirmed that as of 30 April 2026 its issued share capital comprises 321,173,487 ordinary shares, each carrying one vote, with no shares held in treasury. This establishes the total number of voting rights in the company at 321,...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Persimmon Investors Back All AGM Resolutions, Confirming Broad Support for Board and Capital Plans
Positive
Apr 30, 2026
Persimmon shareholders overwhelmingly approved all resolutions at the company’s 2026 annual general meeting, including the receipt of the annual report and accounts and the payment of a final dividend. Investors also backed the remuneration ...
Business Operations and StrategyFinancial Disclosures
Persimmon lifts forward sales as 2026 trading starts strongly
Positive
Apr 30, 2026
Persimmon reported a solid start to 2026, with net private sales per outlet per week edging up and private forward sales rising 7% to £1.80bn, supported by a 5% increase in average selling prices and limited use of incentives. Total forward s...
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.