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Persimmon
(OTC:PSMMY)
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Rating:61Neutral
Price Target:
$29.00
▼(-15.77% Downside)
Action:Downgraded
Date:03/12/26
The score is driven primarily by strong financial flexibility from an extremely low-leverage balance sheet, tempered by weak cash conversion/negative free cash flow in 2025 and lower margins versus prior years. Technically, the stock shows a bearish trend with negative momentum despite oversold readings, while valuation is supported by a mid-teens P/E and a ~4.37% dividend yield.
Positive Factors
Low leverage / strong balance sheet
Persistently minimal debt and a large equity base give Persimmon durable financial flexibility in a cyclical homebuilding sector. This strengthens its ability to acquire land, fund site build-out and absorb downturns without forced asset sales, supporting long-term strategic optionality.
Negative Factors
Weak cash generation / negative FCF
Negative free cash flow reduces the practical flexibility that low leverage implies. Persistent weak cash conversion constrains capacity to fund land acquisition, invest in build programs or sustain distributions without relying on external financing or asset disposals over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Persistently minimal debt and a large equity base give Persimmon durable financial flexibility in a cyclical homebuilding sector. This strengthens its ability to acquire land, fund site build-out and absorb downturns without forced asset sales, supporting long-term strategic optionality.
Read all positive factors
Persimmon (PSMMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.46B
Dividend Yield4.17%
Average Volume (3M)264.00
Price to Earnings (P/E)11.8
Beta (1Y)0.77
Revenue Growth21.05%
EPS Growth10.49%
CountryUS
Employees4,731
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)1.78
Shares Outstanding160,596,050
10 Day Avg. Volume0
30 Day Avg. Volume264
Financial Highlights & Ratios
PEG Ratio4.34
Price to Book (P/B)1.20
Price to Sales (P/S)1.15
P/FCF Ratio-367.77
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit6.08
Enterprise Value/Ebitda8.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Persimmon Business Overview & Revenue Model
Company Description
Persimmon Plc operates as a prominent residential property developer throughout the United Kingdom, inclusive of its subsidiary companies. The firm offers a varied portfolio of housing, encompassing family residences marketed under the Persimmon H...
How the Company Makes Money
Persimmon makes money primarily by building and selling newly constructed homes in the U.K. Its main revenue stream is proceeds from the sale of completed residential properties, where profitability is driven by (1) the selling price achieved on e...
Persimmon Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
38
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 | 641.72M | 580.40M | 795.10M | 867.50M | 1.08B |
| EBITDA | 456.40M | 400.40M | 368.80M | 738.20M | 973.50M |
| Net Income | 279.44M | 267.10M | 255.40M | 561.00M | 787.20M |
Balance Sheet | |||||
| Total Assets | 5.31B | 4.83B | 4.79B | 5.03B | 4.79B |
| Cash, Cash Equivalents and Short-Term Investments | 116.79M | 258.60M | 420.10M | 861.60M | 1.25B |
| Total Debt | 16.77M | 14.50M | 188.40M | 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 | -11.74M | 52.60M | -166.20M | 371.80M | 763.90M |
| Operating Cash Flow | 27.97M | 84.90M | -129.80M | 402.30M | 784.80M |
| Investing Cash Flow | 26.21M | -45.00M | -42.90M | -29.80M | -18.20M |
| Financing Cash Flow | -192.68M | -201.40M | -268.80M | -757.50M | -754.10M |
Persimmon Technical Analysis
Negative
34.43
Price Trends
28.14
Negative
30.72
Negative
31.74
Negative
Market Momentum
0.14
Negative
48.36
Neutral
49.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSMMY, the sentiment is Negative. The current price of 34.43 is above the 20-day moving average (MA) of 27.87, above the 50-day MA of 28.14, and above the 200-day MA of 31.74, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 49.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSMMY.
Persimmon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.74B | 25.43 | 17.55% | ― | 11.36% | 15.51% | |
73 Outperform | $4.57B | 22.76 | 13.10% | ― | 7.26% | 6.61% | |
70 Outperform | $4.11B | 11.86 | 11.42% | ― | -1.83% | -30.18% | |
69 Neutral | $3.92B | 14.97 | 9.01% | 1.76% | -17.52% | -45.75% | |
66 Neutral | $5.59B | 15.28 | 7.40% | 2.62% | -10.63% | -45.01% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.46B | 11.80 | 8.05% | 4.17% | 21.05% | 10.49% |
* Consumer Cyclical Sector Average
PSMMY
Persimmon
27.87
-3.48
-11.11%
CVCO
Cavco Industries
614.38
154.98
33.74%
KBH
KB Home
62.59
7.82
14.27%
MHO
M/I Homes
160.79
42.71
36.17%
MTH
Meritage
83.85
13.09
18.49%
SKY
Champion Homes
88.12
20.61
30.53%
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.