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Persimmon PLC (GB:PSN)
LSE:PSN

Persimmon (PSN) AI Stock Analysis

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GB

Persimmon

(LSE:PSN)

Rating:71Outperform
Price Target:
1,336.00p
▲(8.09%Upside)
Persimmon's strong financial stability and recent strategic moves, including the sale of FibreNest, reflect a positive outlook. Despite current technical weakness, the stock's reasonable valuation and attractive dividend yield provide a compelling case for long-term investment. The company's proactive management and growth prospects further bolster its position in the residential construction industry.
Positive Factors
Financial Performance
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 Positioning
Persimmon remains a preferred stock in an oversold sector.
Order Book and Sales
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.
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 (PSN) vs. iShares MSCI United Kingdom ETF (EWC)

Persimmon Business Overview & Revenue Model

Company DescriptionPersimmon PLC is a prominent British housebuilding company engaged in the development and construction of residential properties across the United Kingdom. Established in 1972, the company operates under several brands, including Persimmon Homes, Charles Church, and Westbury Partnerships, catering to diverse market segments from first-time buyers to luxury home seekers. Persimmon focuses on creating sustainable communities with a range of housing options, ensuring quality and affordability.
How the Company Makes MoneyPersimmon makes money primarily through the sale of newly constructed residential properties. The company's revenue model is centered around acquiring land, developing housing projects, and selling these properties to consumers. Key revenue streams include the direct sale of homes to individual buyers and partnerships with housing associations and local authorities for affordable housing projects. Additionally, Persimmon benefits from economies of scale due to its large operational footprint, which helps in reducing costs and increasing profitability. The company also leverages strategic land acquisitions and planning expertise to maintain a robust pipeline of development sites, ensuring a steady flow of new projects and revenue opportunities.

Persimmon Financial Statement Overview

Summary
Persimmon shows a recovery in revenue and profit margins with no debt, indicating financial stability. However, cash flow efficiency needs improvement.
Income Statement
75
Positive
The income statement reveals a fluctuating revenue trend with a recent rebound in 2024 to 3.2 billion from 2.77 billion in 2023. Gross profit margin is moderately healthy at 18.1% for 2024. However, the absence of EBIT in 2024 indicates a potential operational challenge. Net profit margin improved slightly to 8.3% in 2024. Revenue growth is positive at 15.4% from 2023 to 2024, indicating recovery. Overall, profitability is stabilizing, but operational efficiency needs attention.
Balance Sheet
80
Positive
The balance sheet remains strong with a solid equity base of 3.51 billion and no total debt in 2024, reflecting financial stability. The equity ratio of 72.5% signifies strong asset backing. Return on equity is satisfactory at 7.6% for 2024, though it shows a decline over the years. The debt-to-equity ratio is excellent at 0, eliminating leverage risk.
Cash Flow
68
Positive
Cash flow analysis indicates an improvement in operating cash flow to 84.9 million in 2024 from negative in 2023. Free cash flow returned to positive territory at 52.6 million. The operating cash flow to net income ratio is 0.32, suggesting adequate cash generation relative to net income. Free cash flow to net income ratio is low at 0.20, pointing to potential cash management challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.20B2.77B3.82B3.61B3.33B
Gross Profit580.40M795.10M867.50M1.08B894.40M
EBITDA393.00M381.00M738.20M973.50M799.30M
Net Income267.10M255.40M561.00M787.20M638.40M
Balance Sheet
Total Assets4.83B4.79B5.03B4.79B4.62B
Cash, Cash Equivalents and Short-Term Investments258.60M420.10M861.60M1.25B1.23B
Total Debt453.60M392.70M498.00M436.90M362.60M
Total Liabilities1.33B1.37B1.59B1.17B1.10B
Stockholders Equity3.51B3.42B3.44B3.63B3.52B
Cash Flow
Free Cash Flow52.60M-166.20M371.80M763.90M746.60M
Operating Cash Flow84.90M-129.80M402.30M784.80M765.50M
Investing Cash Flow-45.00M-42.90M-29.80M-18.20M-18.10M
Financing Cash Flow-201.40M-268.80M-757.50M-754.10M-357.20M

Persimmon Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1236.00
Price Trends
50DMA
1294.72
Negative
100DMA
1226.19
Positive
200DMA
1264.39
Negative
Market Momentum
MACD
-21.76
Positive
RSI
42.72
Neutral
STOCH
22.22
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 1236 is below the 20-day moving average (MA) of 1285.21, below the 50-day MA of 1294.72, and below the 200-day MA of 1264.39, indicating a bearish trend. The MACD of -21.76 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBKG
74
Outperform
£3.54B9.7410.73%1.81%0.39%-17.64%
GBVTY
71
Outperform
£2.00B29.272.27%6.04%-66.96%
GBPSN
71
Outperform
£3.87B14.457.71%6.55%15.42%4.45%
GBTW
70
Outperform
£3.98B18.124.92%6.10%-3.22%-37.21%
64
Neutral
£1.70B10.466.12%3.13%0.58%-32.48%
GBBWY
64
Neutral
£3.13B21.314.22%116.77%-11.63%-31.81%
60
Neutral
£5.97B40.001.81%2.60%4.78%-53.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PSN
Persimmon
1,236.00
-199.34
-13.89%
GB:BKG
The Berkeley Group Holdings
3,700.00
-1,105.66
-23.01%
GB:BTRW
Barratt Developments
425.60
-53.81
-11.22%
GB:TW
Taylor Wimpey
112.65
-33.40
-22.87%
GB:BWY
Bellway
2,634.00
32.22
1.24%
GB:VTY
Vistry Group
621.20
-714.80
-53.50%

Persimmon Corporate Events

Legal ProceedingsRegulatory Filings and Compliance
CMA Proposes Closure of Investigation into Persimmon
Neutral
Jul 9, 2025

The UK Competition and Markets Authority (CMA) has proposed closing its investigation into Persimmon and six other UK housebuilders regarding suspected anti-competitive conduct, without finding any infringement of UK competition law by Persimmon. The company has cooperated with the CMA and, along with other housebuilders, has voluntarily offered commitments, including a £15.24 million contribution to the government’s Affordable Homes Programme, to address potential concerns, while maintaining that this does not imply any wrongdoing.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1834.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Regulatory Filings and Compliance
Persimmon Plc Updates Share Capital and Voting Rights
Neutral
Jul 1, 2025

Persimmon Plc announced that as of June 30, 2025, its share capital consisted of 320,311,963 ordinary shares, with no shares held in Treasury. This update is significant for shareholders as it provides the total number of voting rights, which is essential for determining any changes in their interests in the company.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1834.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in Persimmon PLC
Neutral
Jun 17, 2025

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., an American investment management corporation. BlackRock’s voting rights in Persimmon have increased from 5.05% to 5.20%, indicating a slight increase in their influence over the company. This change could potentially impact Persimmon’s strategic decisions and market position, reflecting BlackRock’s continued interest and investment in the company.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1834.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Regulatory Filings and Compliance
Persimmon Plc Announces Share Capital and Voting Rights Update
Neutral
Jun 2, 2025

Persimmon Plc has announced that as of May 31, 2025, its share capital consists of 320,294,685 ordinary shares, each valued at 10p. The company holds no shares in Treasury, resulting in a total of 320,294,685 voting rights. This information is crucial for shareholders to calculate their interests and any changes in their holdings, impacting their decision-making and compliance with disclosure requirements.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1834.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Persimmon Sells FibreNest to BUUK Infrastructure for £100 Million
Positive
May 14, 2025

Persimmon Plc has announced the sale of its full-fibre broadband service, FibreNest, to BUUK Infrastructure for approximately £100 million, pending regulatory approval. This strategic move allows Persimmon to reallocate resources towards its growth strategy and reduces the need for future investment in FibreNest. The sale is expected to enhance customer choice by providing access to multiple internet service providers under BUUK’s management, which is known for its strong customer service in fibre and multi-utility networks.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1834.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Shareholder MeetingsDividendsBusiness Operations and Strategy
Persimmon Plc AGM: Resolutions Passed with Strong Shareholder Support
Positive
May 1, 2025

Persimmon Plc, a prominent player in the construction and real estate industry, held its Annual General Meeting where all resolutions were passed by shareholder poll vote. The resolutions included receiving reports and accounts, declaring a final dividend, and various re-elections and elections of directors. The meeting also covered the reappointment of auditors and authorizations related to share allotment and market purchases. This successful passing of resolutions indicates strong shareholder support and positions the company well for future strategic decisions and operations.

Regulatory Filings and Compliance
Persimmon Plc Announces Share Capital and Voting Rights Update
Neutral
May 1, 2025

Persimmon Plc has announced its share capital details as of April 30, 2025, which consists of 320,232,668 ordinary shares, each valued at 10p. The company does not hold any shares in treasury, resulting in a total of 320,232,668 voting rights. This information is crucial for shareholders to calculate their interests and any changes therein, ensuring compliance with the Disclosure Guidance and Transparency Rule.

Business Operations and StrategyFinancial Disclosures
Persimmon Plc Reports Strong Start to 2025 with Increased Sales and Expansion
Positive
May 1, 2025

Persimmon Plc has reported a strong start to 2025, with a 17% increase in private forward sales, improved sales rates, and a rise in average selling prices. The company has expanded its network of outlets and continues to invest in new land, achieving significant planning success. Despite geopolitical uncertainties, Persimmon remains on track to deliver growth in home completions, with expectations to complete between 11,000 and 11,500 homes by the end of the year. The company has launched a new scheme, ‘New Build Boost,’ to assist customers with affordability challenges, and maintains a positive outlook due to strong market fundamentals and government planning reforms.

Regulatory Filings and Compliance
Norges Bank Adjusts Stake in Persimmon PLC
Neutral
Apr 25, 2025

Norges Bank has adjusted its holdings in Persimmon PLC, reducing its voting rights from 4.004250% to 3.995730%. This change was officially recorded on April 24, 2025, and notified to Persimmon on April 25, 2025. The adjustment in voting rights reflects a minor change in Norges Bank’s stake in the company, which may have implications for its influence in shareholder decisions.

Business Operations and StrategyRegulatory Filings and Compliance
Norges Bank Increases Stake in Persimmon PLC
Neutral
Apr 25, 2025

Norges Bank has increased its voting rights in Persimmon PLC to 4.004250%, crossing the previous threshold of 3.944200%. This change in holdings signifies a potential shift in influence within the company, which could impact future decision-making processes and strategic directions, affecting stakeholders and market dynamics.

Other
Norges Bank Reduces Stake in Persimmon PLC
Neutral
Apr 11, 2025

Norges Bank has reduced its voting rights in Persimmon PLC from 4.046360% to 3.944200%, as per the notification received by the company on April 11, 2025. This change in voting rights could influence Persimmon’s shareholder dynamics and potentially impact future decision-making processes within the company.

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.Date of analysis: Jul 03, 2025