LSE:PSN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.5%

PSN

-2.1%

GB Consumer Durables

0.1%

GB Market


1 Year Return

26.9%

PSN

-8.6%

GB Consumer Durables

-15.3%

GB Market

Return vs Industry: PSN exceeded the UK Consumer Durables industry which returned -8.6% over the past year.

Return vs Market: PSN exceeded the UK Market which returned -15.3% over the past year.


Shareholder returns

PSNIndustryMarket
7 Day4.5%-2.1%0.1%
30 Day-5.6%-11.5%-4.6%
90 Day22.6%15.0%13.1%
1 Year26.9%26.9%-6.2%-8.6%-11.4%-15.3%
3 Year22.9%1.0%-1.6%-15.4%-3.4%-15.2%
5 Year61.9%19.1%17.8%-9.0%15.4%-10.3%

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?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSN (£23.98) is trading below our estimate of fair value (£33.28)

Significantly Below Fair Value: PSN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PSN is poor value based on its PE Ratio (9x) compared to the Consumer Durables industry average (8.5x).

PE vs Market: PSN is good value based on its PE Ratio (9x) compared to the UK market (15x).


Price to Earnings Growth Ratio

PEG Ratio: PSN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PSN is overvalued based on its PB Ratio (2.3x) compared to the GB Consumer Durables industry average (1x).


Next Steps

Future Growth

How is Persimmon forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: PSN's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: PSN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PSN's revenue is expected to decline over the next 3 years (-2.1% per year).

High Growth Revenue: PSN's revenue is forecast to decline over the next 3 years (-2.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSN's Return on Equity is forecast to be low in 3 years time (18.5%).


Next Steps

Past Performance

How has Persimmon performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSN has high quality earnings.

Growing Profit Margin: PSN's current net profit margins (23.3%) are lower than last year (23.7%).


Past Earnings Growth Analysis

Earnings Trend: PSN's earnings have grown by 16% 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 (-4.2%) over the past year, making it difficult to compare to the Consumer Durables industry average (-4.2%).


Return on Equity

High ROE: PSN's Return on Equity (26.1%) is considered high.


Next Steps

Financial Health

How is Persimmon's financial position?


Financial Position Analysis

Short Term Liabilities: PSN's short term assets (£4.1B) exceed its short term liabilities (£996.2M).

Long Term Liabilities: PSN's short term assets (£4.1B) exceed its long term liabilities (£234.8M).


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


Next Steps

Dividend

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

7.45%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PSN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PSN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PSN is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PSN's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

14.3yrs

Average management tenure


CEO

Dave Jenkinson (53yo)

1.58yrs

Tenure

UK£672,998

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD841.15K) is below average for companies of similar size in the UK market ($USD3.18M).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Jenkinson
Group Chief Executive & Executive Director1.58yrsUK£673.00k0.25% £17.7m
Michael Killoran
Group Finance Director & Executive Director21.5yrsUK£633.07k0.61% £43.6m
Duncan Davidson
Founder & Life President14.25yrsUK£94.97kno data
Tracy Davison
Company Secretaryno datano datano data
Peter Jordan
Group Planning & Land Directorno datano datano data
Martyn Clark
Regional Divisional Director for Yorkshire & South Eastno datano datano data

14.3yrs

Average Tenure

59yo

Average Age

Experienced Management: PSN's management team is seasoned and experienced (14.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Jenkinson
Group Chief Executive & Executive Director1.58yrsUK£673.00k0.25% £17.7m
Michael Killoran
Group Finance Director & Executive Director21.5yrsUK£633.07k0.61% £43.6m
Roger Devlin
Chairman of the Board2.08yrsUK£300.00k0.0040% £284.4k
Annemarie Verna Durbin
Independent Non-Executive Directorno datano datano data
Simon Litherland
Independent Non-Executive Director3.25yrsUK£60.00kno data
Nigel Mills
Senior Independent Director2.58yrsUK£75.00k0.00022% £15.8k
Joanna Place
Independent Non-Executive Director0.25yrno datano data
Rachel Kentleton
Independent Non-Executive Director5.08yrsUK£75.00k0.0012% £88.6k

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PSN's board of directors are considered experienced (3.3 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.


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£7.200b
  • Shares outstanding: 318.72m
  • Website: https://www.persimmonhomes.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSMM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
PSNLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
OHPDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
PSNLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
PSMM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 20:48
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.