Persimmon (PSN) AI Stock Analysis

• Market Cap: £3.76B
• Dividend Yield: 4.79%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.45
• Revenue Growth: 16.74%
• EPS Growth: -0.16%
• Country: UK
• Employees: 4,731
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.36
• Shares Outstanding: 320,440,830
• 10 Day Avg. Volume: 1,225,972
• 30 Day Avg. Volume: 1,151,027
• PEG Ratio: 2.87
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 72.79
• 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: £1,473.50
• Price Target Upside: 24.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: 1,309.00p ▲(11.03% Upside)

Persimmon's overall stock score is driven by its strong financial performance, particularly its robust balance sheet with no debt and improving cash flows. Technical analysis supports a bullish outlook with positive momentum indicators. The valuation is reasonable with a solid dividend yield, making it attractive for income investors.

Positive Factors

Strong Balance Sheet

A robust balance sheet with no debt ensures financial stability and flexibility, allowing Persimmon to invest in growth opportunities without leverage risk.

Revenue Growth

The rebound in revenue growth reflects Persimmon's ability to capture market demand and expand its market presence, supporting long-term business sustainability.

Improved Cash Flow

Improved cash flow enhances Persimmon's ability to fund operations and investments internally, reducing reliance on external financing and supporting financial health.

Negative Factors

Operational Efficiency Challenges

Lack of EBIT suggests inefficiencies in operations, potentially impacting profitability and requiring management focus to enhance operational performance.

Cash Generation Efficiency

Low cash generation efficiency may limit Persimmon's ability to reinvest in growth and return capital to shareholders, necessitating improvements in cash management.

Declining Return on Equity

A declining return on equity could indicate reduced effectiveness in generating profits from shareholders' equity, potentially impacting investor confidence and long-term growth.

Persimmon Business Overview & Revenue Model

Company Description

Persimmon Plc (PSN) is a leading UK-based housebuilding company primarily engaged in the construction and sale of residential properties. Founded in 1972, the company operates in the housing sector, focusing on the development of new homes across various regions in the UK. Persimmon offers a diverse range of properties, including apartments, family homes, and luxury residences, catering to various market segments. The company is recognized for its commitment to quality and customer satisfaction, often emphasizing energy-efficient and sustainable building practices.

How the Company Makes Money

Persimmon generates revenue primarily through the sale of residential properties. The company operates through a number of regional divisions that manage the development and sale of homes, enabling it to cater to local housing demands effectively. Key revenue streams include the sale of newly built homes, which are sold to private buyers, housing associations, and investors. Additionally, Persimmon earns income from land sales and joint ventures with other developers or local authorities. The company's strong brand reputation, strategic land acquisitions, and a focus on customer experience further contribute to its profitability. Significant partnerships, such as collaborations with local councils for affordable housing projects, also play a role in securing revenue and enhancing community relations.

Persimmon Financial Statement Overview

Summary

Persimmon shows a recovery in revenue and profit margins in 2024, indicating positive growth. The balance sheet is robust with no debt, ensuring financial stability. Cash flows have improved, but cash generation efficiency needs enhancement. Overall, the financial health is good with room for operational improvements.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.39B	3.20B	2.77B	3.82B	3.61B	3.33B
Gross Profit	563.40M	580.40M	795.10M	867.50M	1.08B	894.40M
EBITDA	395.70M	393.00M	381.00M	738.20M	973.50M	799.30M
Net Income	256.40M	267.10M	255.40M	561.00M	787.20M	638.40M
Balance Sheet
Total Assets	4.99B	4.83B	4.79B	5.03B	4.79B	4.62B
Cash, Cash Equivalents and Short-Term Investments	123.00M	258.60M	420.10M	861.60M	1.25B	1.23B
Total Debt	187.90M	453.60M	392.70M	498.00M	436.90M	362.60M
Total Liabilities	1.51B	1.33B	1.37B	1.59B	1.17B	1.10B
Stockholders Equity	3.48B	3.51B	3.42B	3.44B	3.63B	3.52B
Cash Flow
Free Cash Flow	-33.80M	52.60M	-166.20M	371.80M	763.90M	746.60M
Operating Cash Flow	10.70M	84.90M	-129.80M	402.30M	784.80M	765.50M
Investing Cash Flow	-39.70M	-45.00M	-42.90M	-29.80M	-18.20M	-18.10M
Financing Cash Flow	-198.20M	-201.40M	-268.80M	-757.50M	-754.10M	-357.20M

Persimmon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1179.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1179 is above the 20-day moving average (MA) of 1147.29, above the 50-day MA of 1105.68, and above the 200-day MA of 1168.06, indicating a bullish trend. The MACD of 25.89 indicates Negative momentum. The RSI at 71.26 is Negative, neither overbought nor oversold. The STOCH value of 60.48 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSN	74 Outperform	£3.76B	14.64	7.44%	4.79%	16.74%	-0.16%
BKG	73 Outperform	£3.78B	10.63	10.73%	6.15%	0.90%	-4.04%
BTRW	69 Neutral	£5.41B	28.34	2.80%	4.34%	33.83%	15.11%
TW	65 Neutral	£3.67B	43.19	1.97%	8.95%	4.21%	-65.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BWY	60 Neutral	£3.04B	19.30	4.49%	2.28%	16.91%	20.80%
VTY	60 Neutral	£2.05B	28.23	-0.31%	―	-0.57%	-104.08%

Persimmon Corporate Events

Persimmon Plc Announces Share Capital and Voting Rights Update

Persimmon Plc announced that as of September 30, 2025, the company’s share capital consisted of 320,440,813 ordinary shares, with no shares held in Treasury. Consequently, the total number of voting rights in the company is 320,440,813, which shareholders can use to determine their interest or changes in their interest in the company.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1236.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Persimmon CFO Acquires and Sells Shares Amid Compensation Vesting

Persimmon Plc announced that its Chief Financial Officer, Andrew Duxbury, acquired 15,151 shares in the company as part of a compensation package for a forfeited share award from his previous employer. To cover the tax liability from this vesting, Duxbury sold 7,132 shares, retaining the remaining balance. This transaction reflects the company’s adherence to regulatory requirements and highlights the financial activities of its key executives.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £1236.00 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Persimmon Director Increases Stake with Share Purchase

Anand Aithal, a Non-Executive Director at Persimmon Plc, recently purchased a total of 1,000 shares in the company, with transactions executed at prices of £10.76 and £10.72 per share. This move is part of the company’s regulatory disclosure requirements and may indicate confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:PSN) stock is a Hold with a £14.80 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Persimmon Plc Reports Strong First Half Performance in 2025

Persimmon Plc reported a robust performance for the first half of 2025, with a 4% increase in new home completions and a 13% rise in underlying operating profit. The company has maintained its growth trajectory by expanding its sales outlets and enhancing its planning and operational strategies. Despite challenging market conditions, Persimmon remains on track to meet its annual completion targets and continues to invest in future growth, including land acquisition and building safety improvements. The company’s strategic focus on self-help and operational discipline has resulted in increased sales and profitability, positioning it well for continued growth.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £19.69 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.

Persimmon Plc Announces Share Capital and Voting Rights Update

Persimmon Plc has announced that as of July 31, 2025, its share capital consists of 320,318,683 ordinary shares, each valued at 10p. The company holds no shares in Treasury, meaning the total number of voting rights is the same as the number of shares, 320,318,683. This information is crucial for shareholders to determine their notification requirements regarding their interests in the company.

The most recent analyst rating on (GB:PSN) stock is a Buy with a £19.69 price target. To see the full list of analyst forecasts on Persimmon stock, see the GB:PSN Stock Forecast page.