LSE:PSN

Stock Analysis Report

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Market Cap

UK£9.3b

Last Updated

2021/07/31 18:13 UTC

Data Sources

Company Financials +

Executive Summary

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Persimmon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PSN is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PSN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

PSN

-1.0%

GB Consumer Durables

0.3%

GB Market


1 Year Return

20.9%

PSN

37.0%

GB Consumer Durables

22.4%

GB Market

Return vs Industry: PSN underperformed the UK Consumer Durables industry which returned 37% over the past year.

Return vs Market: PSN underperformed the UK Market which returned 22.4% over the past year.


Shareholder returns

PSNIndustryMarket
7 Day0.4%-1.0%0.3%
30 Day-3.8%1.7%0.3%
90 Day-7.3%-4.7%1.5%
1 Year36.1%20.9%42.6%37.0%27.9%22.4%
3 Year49.4%19.2%33.7%17.4%12.7%-0.1%
5 Year144.8%68.5%95.9%53.4%39.4%12.6%

Long-Term Price Volatility Vs. Market

How volatile is Persimmon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Persimmon undervalued compared to its fair value and its price relative to the market?

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSN (£29.04) is trading below our estimate of fair value (£29.09)

Significantly Below Fair Value: PSN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PSN is good value based on its PE Ratio (14.5x) compared to the UK Consumer Durables industry average (28.4x).

PE vs Market: PSN is good value based on its PE Ratio (14.5x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: PSN is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: PSN is overvalued based on its PB Ratio (2.6x) compared to the GB Consumer Durables industry average (1.5x).


Future Growth

How is Persimmon forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's forecast earnings growth (6.4% per year) is above the savings rate (0.9%).

Earnings vs Market: PSN's earnings (6.4% per year) are forecast to grow slower than the UK market (14.8% per year).

High Growth Earnings: PSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: PSN's revenue (5.8% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: PSN's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSN's Return on Equity is forecast to be high in 3 years time (22.5%)


Past Performance

How has Persimmon performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSN has high quality earnings.

Growing Profit Margin: PSN's current net profit margins (19.2%) are lower than last year (23.3%).


Past Earnings Growth Analysis

Earnings Trend: PSN's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: PSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSN had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Consumer Durables industry average (-48%).


Return on Equity

High ROE: PSN's Return on Equity (18.1%) is considered low.


Financial Health

How is Persimmon's financial position?


Financial Position Analysis

Short Term Liabilities: PSN's short term assets (£4.2B) exceed its short term liabilities (£874.7M).

Long Term Liabilities: PSN's short term assets (£4.2B) exceed its long term liabilities (£230.0M).


Debt to Equity History and Analysis

Debt Level: PSN is debt free.

Reducing Debt: PSN has not had any debt for past 5 years.

Debt Coverage: PSN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PSN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

8.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSN's dividend (8.09%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: PSN's dividend (8.09%) is in the top 25% of dividend payers in the UK market (4%)


Stability and Growth of Payments

Stable Dividend: PSN's dividend payments have been volatile in the past 10 years.

Growing Dividend: PSN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.4%), PSN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSN's dividends in 3 years are not forecast to be well covered by earnings (93.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

15.2yrs

Average management tenure


CEO

Dean Finch (54 yo)

0.75

Tenure

UK£762,708

Compensation

Mr. Dean Finch, B.Sc, MBA, ACA, has been an Independent Non-Executive Director of Diploma PLC since May 21, 2021. Mr. Finch has been Group Chief Executive Officer and Executive Director of Persimmon Plc si...


CEO Compensation Analysis

Compensation vs Market: Dean's total compensation ($USD1.06M) is below average for companies of similar size in the UK market ($USD3.63M).

Compensation vs Earnings: Insufficient data to compare Dean's compensation with company performance.


Leadership Team

Experienced Management: PSN's management team is seasoned and experienced (15.2 years average tenure).


Board Members

Experienced Board: PSN's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Persimmon Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Persimmon Plc
  • Ticker: PSN
  • Exchange: LSE
  • Founded: 1972
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Market Cap: UK£9.264b
  • Shares outstanding: 318.99m
  • Website: https://www.persimmonhomes.com

Number of Employees


Location

  • Persimmon Plc
  • Persimmon House
  • Fulford
  • York
  • North Yorkshire
  • YO19 4FE
  • United Kingdom

Listings


Biography

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; executive housing under the Charles...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 18:13
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.