Loading...

Persimmon

LSE:PSN
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSN
LSE
£7B
Market Cap
  1. Home
  2. GB
  3. Consumer Durables
Company description

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The last earnings update was 2 days ago. More info.


Add to Portfolio Compare Print
PSN Share Price and Events
7 Day Returns
-0.4%
LSE:PSN
88.1%
GB Consumer Durables
32.1%
GB Market
1 Year Returns
-13.2%
LSE:PSN
79.9%
GB Consumer Durables
30.9%
GB Market
PSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Persimmon (PSN) -0.4% -8.2% 17.2% -13.2% 5.5% 64.2%
GB Consumer Durables 88.1% 93.8% 127.4% 79.9% 103.8% 212.2%
GB Market 32.1% 31.6% 40.2% 30.9% 48.1% 12.2%
1 Year Return vs Industry and Market
  • PSN underperformed the Consumer Durables industry which returned 79.9% over the past year.
  • PSN underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 30.9% over the past year.
Price Volatility
PSN
Industry
5yr Volatility vs Market

Value

 Is Persimmon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Persimmon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Persimmon.

LSE:PSN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:PSN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.911 (1 + (1- 19%) (0%))
0.94
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.94 * 6.65%)
7.48%

Discounted Cash Flow Calculation for LSE:PSN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Persimmon is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:PSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.48%)
2019 861.60 Analyst x4 801.64
2020 914.48 Analyst x4 791.63
2021 865.00 Analyst x1 696.70
2022 862.00 Analyst x1 645.97
2023 863.08 Est @ 0.12% 601.77
2024 867.01 Est @ 0.46% 562.44
2025 872.96 Est @ 0.69% 526.90
2026 880.37 Est @ 0.85% 494.40
2027 888.84 Est @ 0.96% 464.42
2028 898.10 Est @ 1.04% 436.61
Present value of next 10 years cash flows £6,022.49
LSE:PSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £898.10 × (1 + 1.23%) ÷ (7.48% – 1.23%)
£14,541.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £14,541.27 ÷ (1 + 7.48%)10
£7,069.12
LSE:PSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £6,022.49 + £7,069.12
£13,091.61
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £13,091.61 / 317.18
£41.28
LSE:PSN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £41.28
Current discount Discount to share price of £22.22
= -1 x (£22.22 - £41.28) / £41.28
46.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Persimmon is available for.
Intrinsic value
46%
Share price is £22.22 vs Future cash flow value of £41.28
Current Discount Checks
For Persimmon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Persimmon's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Persimmon's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Persimmon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Persimmon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:PSN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £2.83
LSE:PSN Share Price ** LSE (2019-03-20) in GBP £22.22
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PE Ratio Median Figure of 26 Publicly-Listed Consumer Durables Companies 10.23x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 806 Publicly-Listed Companies 16.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Persimmon.

LSE:PSN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:PSN Share Price ÷ EPS (both in GBP)

= 22.22 ÷ 2.83

7.84x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Persimmon is good value based on earnings compared to the GB Consumer Durables industry average.
  • Persimmon is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Persimmon's expected growth come at a high price?
Raw Data
LSE:PSN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-1.7%per year
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PEG Ratio Median Figure of 23 Publicly-Listed Consumer Durables Companies 1.15x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

LSE:PSN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.84x ÷ -1.7%

-4.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Persimmon earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Persimmon's assets?
Raw Data
LSE:PSN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £10.07
LSE:PSN Share Price * LSE (2019-03-20) in GBP £22.22
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry PB Ratio Median Figure of 28 Publicly-Listed Consumer Durables Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,359 Publicly-Listed Companies 1.53x
LSE:PSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:PSN Share Price ÷ Book Value per Share (both in GBP)

= 22.22 ÷ 10.07

2.21x

* Primary Listing of Persimmon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Persimmon is overvalued based on assets compared to the GB Consumer Durables industry average.
X
Value checks
We assess Persimmon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Persimmon has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Persimmon expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Persimmon expected to grow at an attractive rate?
  • Persimmon's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Persimmon's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Persimmon's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:PSN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:PSN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -1.7%
LSE:PSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 1.7%
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 1.4%
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average -1.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 6.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:PSN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:PSN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 4,223 1
2021-12-31 3,905 942 5
2020-12-31 3,788 1,026 859 12
2019-12-31 3,693 848 855 12
LSE:PSN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 3,738 654 886
2018-09-30 3,709 862
2018-06-30 3,505 829 837
2018-03-31 3,463 827 812
2017-12-31 3,598 824 787
2017-09-30 3,499 749
2017-06-30 3,401 755 711
2017-03-31 3,269 726 668
2016-12-31 3,137 698 625
2016-09-30 3,098 618 597
2016-06-30 3,059 538 568
2016-03-31 2,980 516 545

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Persimmon's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Persimmon's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:PSN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Persimmon Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PSN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 2.83 2.83 2.83 1.00
2020-12-31 2.75 3.12 2.05 6.00
2019-12-31 2.84 2.89 2.80 2.00
LSE:PSN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 2.83
2018-09-30 2.77
2018-06-30 2.70
2018-03-31 2.63
2017-12-31 2.55
2017-09-30 2.43
2017-06-30 2.31
2017-03-31 2.17
2016-12-31 2.03
2016-09-30 1.94
2016-06-30 1.85
2016-03-31 1.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Persimmon is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Persimmon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Persimmon has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Persimmon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Persimmon's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Persimmon has delivered over 20% year on year earnings growth in the past 5 years.
  • Persimmon's 1-year earnings growth is less than its 5-year average (12.6% vs 22.5%)
  • Persimmon's earnings growth has not exceeded the GB Consumer Durables industry average in the past year (12.6% vs 20.2%).
Earnings and Revenue History
Persimmon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Persimmon Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:PSN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,737.60 886.40 101.10
2018-09-30 3,708.85 861.80 110.40
2018-06-30 3,504.60 837.20 119.70
2018-03-31 3,463.45 812.05 122.35
2017-12-31 3,597.80 786.90 125.00
2017-09-30 3,499.40 748.90 117.25
2017-06-30 3,401.00 710.90 109.50
2017-03-31 3,268.90 668.10 108.20
2016-12-31 3,136.80 625.30 106.90
2016-09-30 3,097.65 596.60 114.00
2016-06-30 3,058.50 567.90 121.10
2016-03-31 2,980.10 544.90 121.90
2015-12-31 2,901.70 521.90 122.70
2015-09-30 2,805.00 483.85 119.00
2015-06-30 2,708.30 445.80 115.30
2015-03-31 2,641.10 408.90 114.40
2014-12-31 2,573.90 372.00 113.50
2014-09-30 2,479.00 345.75 110.90
2014-06-30 2,384.10 319.50 108.30
2014-03-31 2,235.00 288.35 106.50
2013-12-31 2,085.90 257.20 104.70
2013-09-30 1,950.25 225.10 104.65
2013-06-30 1,814.60 193.00 104.60
2013-03-31 1,768.00 180.25 101.55
2012-12-31 1,721.40 167.50 98.50
2012-09-30 1,675.15 152.55 95.05
2012-06-30 1,628.90 137.60 91.60
2012-03-31 1,581.95 123.30 87.45

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Persimmon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Persimmon used its assets more efficiently than the GB Consumer Durables industry average last year based on Return on Assets.
  • Persimmon has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Persimmon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Persimmon has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Persimmon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Persimmon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Persimmon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Persimmon's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Persimmon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Persimmon has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Persimmon Company Filings, last reported 2 months ago.

LSE:PSN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,194.50 0.00 1,048.10
2018-09-30 3,194.50 0.00 1,048.10
2018-06-30 2,836.30 0.00 1,154.60
2018-03-31 2,836.30 0.00 1,154.60
2017-12-31 3,201.60 0.00 1,302.70
2017-09-30 3,201.60 0.00 1,302.70
2017-06-30 2,711.00 0.00 1,120.40
2017-03-31 2,711.00 0.00 1,120.40
2016-12-31 2,737.40 0.00 913.00
2016-09-30 2,737.40 0.00 913.00
2016-06-30 2,343.80 0.00 462.00
2016-03-31 2,343.80 0.00 462.00
2015-12-31 2,455.80 0.00 570.40
2015-09-30 2,455.80 0.00 570.40
2015-06-30 2,161.80 0.00 278.00
2015-03-31 2,161.80 0.00 278.00
2014-12-31 2,192.60 0.00 378.40
2014-09-30 2,192.60 0.00 378.40
2014-06-30 2,006.50 0.00 326.30
2014-03-31 2,006.50 0.00 326.30
2013-12-31 2,045.50 0.00 204.30
2013-09-30 2,045.50 0.00 204.30
2013-06-30 1,873.60 0.00 48.10
2013-03-31 1,873.60 0.00 48.10
2012-12-31 1,993.70 0.00 201.50
2012-09-30 1,993.70 0.00 201.50
2012-06-30 1,893.90 1.70 136.90
2012-03-31 1,893.90 1.70 136.90
  • Persimmon has no debt.
  • Persimmon had no debt 5 years ago.
  • Persimmon has no debt, it does not need to be covered by operating cash flow.
  • Persimmon has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Persimmon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Persimmon has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Persimmon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
10.58%
Current annual income from Persimmon dividends. Estimated to be 10.33% next year.
If you bought £2,000 of Persimmon shares you are expected to receive £212 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Persimmon's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Persimmon's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.17%).
Upcoming dividend payment

Purchase Persimmon on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:PSN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 3.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 704 Stocks 4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:PSN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.35 1.00
2021-12-31 2.03 6.00
2020-12-31 2.35 14.00
2019-12-31 2.35 14.00
LSE:PSN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-18 2.350 10.369
2019-02-26 2.350 10.069
2018-03-19 2.350 9.842
2018-02-27 2.350 9.098
2017-03-20 1.350 5.422
2017-02-27 1.350 6.428
2016-03-14 1.100 6.051
2016-02-23 1.100 5.344
2015-03-16 0.950 4.929
2015-02-24 0.950 5.473
2014-03-17 0.700 5.065
2014-02-25 0.700 5.034
2013-08-20 0.000 0.000
2013-02-25 0.000 0.000
2013-02-22 0.000 0.000
2012-08-21 0.000 0.000
2012-03-20 0.100 1.624
2012-02-28 0.100 1.497
2011-03-01 0.090 1.901
2011-02-28 0.090 1.952
2010-08-24 0.060 1.521
2010-03-02 0.000 0.000
2010-03-01 0.000 0.000
2009-08-25 0.000 0.000
2009-03-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Persimmon has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Persimmon only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Persimmon's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Persimmon has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Persimmon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Persimmon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Persimmon has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Persimmon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dave Jenkinson
COMPENSATION £20,369,420
AGE 51
TENURE AS CEO 0.3 years
CEO Bio

Mr. David Jenkinson, also known as Dave, has been Group Chief Executive of Persimmon Plc since February 26, 2019. He served as Interim Chief Executive Officer at Persimmon plc since December 31, 2018 until February 26, 2019.. He was Group Managing Director at Persimmon plc since January 7, 2016 until December 31, 2018, and served as its Chief Executive of North Division since January 2013. Mr. Jenkinson joined Persimmon in 1997 and served as its North East Regional Chairman of North Division Board. He served as Managing Director of the North East operating business at Persimmon plc since 2005 and served as its Regional Managing Director since 2007. He has been an Executive Director of Persimmon plc since December 13, 2013.

CEO Compensation
  • Dave's compensation has increased by more than 20% in the past year.
  • Dave's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Persimmon management team in years:

12.9
Average Tenure
57
Average Age
  • The average tenure for the Persimmon management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Dave Jenkinson

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£20M
AGE
51
TENURE
0.3 yrs

Mike Killoran

TITLE
Group Finance Director & Director
COMPENSATION
£37M
AGE
57
TENURE
19.9 yrs

Duncan Davidson

TITLE
Founder & Life President
COMPENSATION
£95K
AGE
76
TENURE
12.9 yrs

Tracy Davison

TITLE
Company Secretary

Peter Jordan

TITLE
Group Planning & Land Director
Board of Directors Tenure

Average tenure and age of the Persimmon board of directors in years:

3.8
Average Tenure
55
Average Age
  • The tenure for the Persimmon board of directors is about average.
Board of Directors

Roger Devlin

TITLE
Chairman
AGE
60
TENURE
0.8 yrs

Dave Jenkinson

TITLE
Group Chief Executive & Executive Director
COMPENSATION
£20M
AGE
51
TENURE
5.3 yrs

Mike Killoran

TITLE
Group Finance Director & Director
COMPENSATION
£37M
AGE
57
TENURE
20.2 yrs

Marion Sears

TITLE
Non-Executive Director
COMPENSATION
£76K
AGE
55
TENURE
6.2 yrs

Rachel Kentleton

TITLE
Non-Executive Director
COMPENSATION
£75K
AGE
49
TENURE
3.8 yrs

Nigel Mills

TITLE
Senior Independent Director
COMPENSATION
£61K
AGE
62
TENURE
1.3 yrs

Simon Litherland

TITLE
Independent Non-Executive Director
COMPENSATION
£45K
AGE
53
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • Persimmon insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
04. Mar 19 Sell David Jenkinson Individual 01. Mar 19 01. Mar 19 -5,120 £24.44 £-125,150
04. Mar 19 Sell Michael Killoran Individual 01. Mar 19 01. Mar 19 -476,919 £24.33 £-11,603,439
11. Dec 18 Buy Marion Sears Individual 07. Dec 18 07. Dec 18 1,500 £19.53 £29,249
13. Apr 18 Buy Rachel Kentleton Individual 12. Apr 18 12. Apr 18 751 £26.63 £19,998
X
Management checks
We assess Persimmon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Persimmon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Persimmon Plc's (LON:PSN) Recent Track Record Look Strong?

Did PSN beat its long-term earnings growth trend and its industry. … PSN's trailing twelve-month earnings (from 31 December 2018) of UK£886m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which PSN is growing has slowed down

Simply Wall St -

Persimmon Plc (LON:PSN): What Are The Future Prospects?

Persimmon Plc's (LON:PSN) released its most recent earnings update in December 2018, whicha … confirmed

Simply Wall St -

If You Had Bought Persimmon Shares Five Years Ago You'd Have Made 63%

For example, long term Persimmon Plc (LON:PSN) shareholders have enjoyed a 63% share price rise over the last half decade, well in excess of the market return of around -1.8% (not including dividends). … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Has Persimmon Plc (LON:PSN) Got Enough Cash?

Help shape the future of investing tools and you could win a $250 gift card! … Today we will look at PSN’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Persimmon's financial health, so you should conduct further analysis.

Simply Wall St -

An Intrinsic Calculation For Persimmon Plc (LON:PSN) Shows It's 41.72% Undervalued

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Do You Like Persimmon Plc (LON:PSN) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

A Holistic Look At Persimmon Plc (LON:PSN)

Attractive stocks have exceptional fundamentals. … In the case of Persimmon Plc (LON:PSN), there's … financially-healthy

Simply Wall St -

Need To Know: Persimmon Plc (LON:PSN) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in Persimmon Plc (LON:PSN). … It's not at all bad to see insiders buy shares at or above current prices. … This is nice to see since it implies that insiders might see value around current prices (around UK£18.60).

Simply Wall St -

What Do You Get For Owning Persimmon Plc (LON:PSN)?

and looking to gauge the potential return on investment in Persimmon Plc (LON:PSN). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Persimmon’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Stocks Take A Hit: How Will Persimmon Plc (LON:PSN) Fare?

Today I want to bring to light the market's darling - Persimmon Plc. … Looking at its size, financial health and track record, I believe there's an opportunity with Persimmon during these volatile times. … Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom

Simply Wall St -

Company Info

Description

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers apartments and family homes under the Persimmon Homes brand name; executive housing under the Charles Church brand; and social housing under the Westbury Partnerships brand name. It also provides broadband services. The company was founded in 1972 and is headquartered in York, the United Kingdom.

Details
Name: Persimmon Plc
PSN
Exchange: LSE
Founded: 1972
£7,047,696,159
317,178,045
Website: http://www.persimmonhomes.com
Address: Persimmon Plc
Persimmon House,
Fulford,
York,
North Yorkshire, YO19 4FE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE PSN Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK PSMM.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB OHP Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE PSNL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK PSMM.Y UNSPONSORD ADR Pink Sheets LLC US USD 17. Oct 2008
Number of employees
Current staff
Staff numbers
4,943
Persimmon employees.
Industry
Homebuilding
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:40
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/16
Last earnings filing: 2019/03/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.