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Persimmon Plc Unsponsored ADR (PSMMY)
:PSMMY
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Persimmon (PSMMY) AI Stock Analysis

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PSMMY

Persimmon

(OTC:PSMMY)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$34.00
▲(10.00% Upside)
The overall stock score is driven by solid technical analysis and reasonable valuation, supported by a strong equity position. However, declining profit margins and cash flow sustainability concerns weigh on the financial performance score. The absence of earnings call data and corporate events means these factors do not influence the score.

Persimmon (PSMMY) vs. SPDR S&P 500 ETF (SPY)

Persimmon Business Overview & Revenue Model

Company DescriptionPersimmon PLC (PSMMY) is a leading UK-based housebuilder operating in the residential construction sector. Founded in 1972, the company specializes in the development of high-quality homes across various regions in the UK. Persimmon offers a range of properties, including apartments, family homes, and luxury residences, catering to different market segments. The company is known for its commitment to sustainability, innovative design, and customer service, building communities that meet the needs of modern living.
How the Company Makes MoneyPersimmon generates revenue primarily through the sale of residential properties. The company's revenue model is driven by the development and sale of new homes, which includes both private sales and affordable housing schemes. Key revenue streams include sales from its various brands, such as Persimmon Homes, Charles Church, and Westbury Partnerships. Additionally, the company benefits from partnerships with local authorities and housing associations to develop affordable housing, which enhances its market reach. Factors contributing to its earnings include strong demand for housing, efficient land acquisition strategies, and a robust construction pipeline, as well as favorable government policies supporting homeownership.

Persimmon Financial Statement Overview

Summary
Persimmon demonstrates revenue growth and a strong equity position, reducing leverage risks. However, declining margins and cash reserves, along with a low operating cash flow to net income ratio, suggest profitability and cash flow sustainability challenges. Continued focus on margin improvement and cash flow management is recommended to strengthen financial health.
Income Statement
65
Positive
Persimmon's revenue for 2024 showed a 15.41% increase from the previous year, indicating positive growth. However, gross profit and net income margins have decreased over the years, with a notable drop in gross profit margin from 29.37% in 2023 to 18.13% in 2024. The absence of EBIT in 2024 affects profitability analysis. Despite revenue growth, declining margins suggest potential profitability challenges.
Balance Sheet
75
Positive
The company's balance sheet reflects strong equity, with an equity ratio consistently above 70%. The debt-to-equity ratio improved to 0 in 2024, reducing leverage risks. Previously, the debt-to-equity ratio was manageable, indicating prudent financial management. However, the decline in cash reserves from 2023 to 2024 may require monitoring.
Cash Flow
60
Neutral
Operating cash flow turned positive in 2024 after a negative year in 2023, indicating improved cash generation. Free cash flow also improved significantly. However, the operating cash flow to net income ratio remains low, suggesting that cash earnings are not fully translating into net income. Cash flow improvements are a positive sign, but sustainability needs assessment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.39B3.20B2.77B3.82B3.61B3.33B
Gross Profit607.40M580.40M795.10M867.50M1.08B894.40M
EBITDA403.70M400.40M368.80M738.20M973.50M799.30M
Net Income256.40M267.10M255.40M561.00M787.20M638.40M
Balance Sheet
Total Assets4.99B4.83B4.79B5.03B4.79B4.62B
Cash, Cash Equivalents and Short-Term Investments123.00M258.60M420.10M861.60M1.25B1.23B
Total Debt0.0014.50M188.40M498.00M436.90M362.60M
Total Liabilities1.51B1.33B1.37B1.59B1.17B1.10B
Stockholders Equity3.48B3.51B3.42B3.44B3.63B3.52B
Cash Flow
Free Cash Flow-32.90M52.60M-166.20M371.80M763.90M746.60M
Operating Cash Flow11.60M84.90M-129.80M402.30M784.80M765.50M
Investing Cash Flow-39.70M-45.00M-42.90M-29.80M-18.20M-18.10M
Financing Cash Flow-199.10M-201.40M-268.80M-757.50M-754.10M-357.20M

Persimmon Technical Analysis

Technical Analysis Sentiment
Positive
Last Price30.91
Price Trends
50DMA
29.86
Positive
100DMA
31.34
Positive
200DMA
30.89
Positive
Market Momentum
MACD
0.60
Negative
RSI
71.08
Negative
STOCH
72.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSMMY, the sentiment is Positive. The current price of 30.91 is above the 20-day moving average (MA) of 30.77, above the 50-day MA of 29.86, and above the 200-day MA of 30.89, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 71.08 is Negative, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSMMY.

Persimmon Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$4.52B25.0417.90%16.66%34.61%
74
Outperform
$4.01B8.6813.04%1.60%-0.95%-9.22%
73
Outperform
$3.67B7.7015.76%4.82%-9.30%
73
Outperform
$4.29B20.5114.39%16.87%54.47%
69
Neutral
$5.04B15.217.30%4.99%20.00%2.62%
68
Neutral
$5.01B8.0412.58%2.33%-3.72%-23.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSMMY
Persimmon
33.47
-5.81
-14.79%
CVCO
Cavco Industries
572.89
156.62
37.62%
KBH
KB Home
62.56
-14.86
-19.19%
MHO
M/I Homes
131.69
-28.58
-17.83%
MTH
Meritage
70.67
-19.95
-22.02%
SKY
Champion Homes
75.13
-13.90
-15.61%

Persimmon Corporate Events

Persimmon Plc Reports Strong H1 Growth Amid Market Challenges
Aug 14, 2025

Persimmon Plc is a leading UK-based homebuilder, operating primarily in the residential construction sector, known for its strong focus on customer satisfaction and strategic land investments.

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: Oct 14, 2025