LSE:PSN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet average dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

PSN

-1.9%

GB Consumer Durables

-1.0%

GB Market


1 Year Return

3.3%

PSN

-19.0%

GB Consumer Durables

-14.8%

GB Market

Return vs Industry: PSN exceeded the UK Consumer Durables industry which returned -18.2% over the past year.

Return vs Market: PSN exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

PSNIndustryMarket
7 Day-2.7%-1.9%-1.0%
30 Day-0.9%4.0%-1.6%
90 Day-4.1%-4.2%-3.6%
1 Year4.9%3.3%-17.8%-19.0%-11.6%-14.8%
3 Year6.5%-13.8%-13.8%-25.8%-8.9%-20.2%
5 Year70.3%23.4%18.7%-8.4%16.2%-10.0%

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?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSN (£24.74) is trading below our estimate of fair value (£30.48)

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 (11.7x) compared to the GB Consumer Durables industry average (13.5x).

PE vs Market: PSN is good value based on its PE Ratio (11.7x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: PSN is poor value based on its PEG Ratio (2.2x)


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 (1.1x).


Next Steps

Future Growth

How is Persimmon forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's forecast earnings growth (5.3% per year) is above the savings rate (1.2%).

Earnings vs Market: PSN's earnings (5.3% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: PSN's revenue (5.6% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: PSN's revenue (5.6% 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 (21.3%)


Next Steps

Past Performance

How has Persimmon performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSN has high quality earnings.

Growing Profit Margin: PSN's current net profit margins (21.9%) are lower than last year (24%).


Past Earnings Growth Analysis

Earnings Trend: PSN's earnings have grown by 10.8% 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 (-23.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (-39.6%).


Return on Equity

High ROE: PSN's Return on Equity (19.6%) is considered low.


Next Steps

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 (£857.3M).

Long Term Liabilities: PSN's short term assets (£4.2B) exceed its long term liabilities (£218.5M).


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?

3.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSN's dividend (3.23%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: PSN's dividend (3.23%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


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 low payout ratio (18.9%), PSN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSN's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).


Next Steps

Management

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

14.5yrs

Average management tenure


CEO

Dean Finch (53 yo)

0.083

Tenure

Mr. Dean Finch, B.Sc, MBA, ACA, has been Group Chief Executive Officer and Director of Persimmon Plc since September 28, 2020. He had been the Group Chief Executive Officer at National Express Group plc si ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Killoran
Group Finance Director & Executive Director21.75yrsUK£633.07k0.61%
£ 47.8m
Dean Finch
Group Chief Executive & Director0.083yrno datano data
Duncan Davidson
Founder & Life President14.5yrsUK£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
Richard Stenhouse
Group Regulatory Directorno datano datano data

14.5yrs

Average Tenure

59yo

Average Age

Experienced Management: PSN's management team is seasoned and experienced (14.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Killoran
Group Finance Director & Executive Director21.75yrsUK£633.07k0.61%
£ 47.8m
Dean Finch
Group Chief Executive & Director0.083yrno datano data
Roger Devlin
Chairman of the Board2.33yrsUK£300.00k0.0040%
£ 311.5k
Annemarie Verna Durbin
Independent Non-Executive Director0.25yrno datano data
Simon Litherland
Independent Non-Executive Director3.5yrsUK£60.00kno data
Nigel Mills
Senior Independent Director2.83yrsUK£75.00k0.00022%
£ 17.3k
Joanna Place
Independent Non-Executive Director0.50yrno datano data
Rachel Kentleton
Independent Non-Executive Director5.33yrsUK£75.00k0.0012%
£ 97.0k

2.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PSN's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: PSN insiders have only sold shares 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£7.885b
  • Shares outstanding: 318.73m
  • 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 unde ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:17
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.