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PSN

PersimmonLSE:PSN Stock Report

Market Cap

UK£8.7b

7D

-0.7%

1Y

3.9%

Updated

29 Nov, 2021

Data

Company Financials +
PSN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends3/6

PSN Stock Overview

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

Persimmon Competitors

Barratt Developments

LSE:BDEV

UK£7.0b

Taylor Wimpey

LSE:TW.

UK£5.6b

Berkeley Group Holdings

LSE:BKG

UK£4.8b

Bellway

LSE:BWY

UK£3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Persimmon
Historical stock prices
Current Share PriceUK£27.59
52 Week HighUK£32.72
52 Week LowUK£24.32
Beta1.34
1 Month Change1.40%
3 Month Change-6.16%
1 Year Change3.88%
3 Year Change45.75%
5 Year Change61.91%
Change since IPO1,089.22%

Recent News & Updates

Nov 14
Persimmon (LON:PSN) Looks To Prolong Its Impressive Returns

Persimmon (LON:PSN) Looks To Prolong Its Impressive Returns

If you're looking for a multi-bagger, there's a few things to keep an eye out for. One common approach is to try and...

Nov 01
Should You Think About Buying Persimmon Plc (LON:PSN) Now?

Should You Think About Buying Persimmon Plc (LON:PSN) Now?

Persimmon Plc ( LON:PSN ) received a lot of attention from a substantial price movement on the LSE over the last few...

Sep 10
A Look At The Intrinsic Value Of Persimmon Plc (LON:PSN)

A Look At The Intrinsic Value Of Persimmon Plc (LON:PSN)

How far off is Persimmon Plc ( LON:PSN ) from its intrinsic value? Using the most recent financial data, we'll take a...

Aug 26
We Like Persimmon's (LON:PSN) Earnings For More Than Just Statutory Profit

We Like Persimmon's (LON:PSN) Earnings For More Than Just Statutory Profit

Persimmon Plc's ( LON:PSN ) recent earnings report didn't offer any surprises, with the shares unchanged over the last...

Shareholder Returns

PSNGB Consumer DurablesGB Market
7D-0.7%-1.0%-1.9%
1Y3.9%7.1%13.8%

Return vs Industry: PSN matched the UK Consumer Durables industry which returned 4.5% over the past year.

Return vs Market: PSN underperformed the UK Market which returned 11.6% over the past year.

Price Volatility

Is PSN's price volatile compared to industry and market?
PSN volatility
PSN Average Weekly Movement3.5%
Consumer Durables Industry Average Movement3.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.6%

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.

About the Company

FoundedEmployeesCEOWebsite
19725,000Dean Finchhttps://www.persimmonhomes.com

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 Church brand; and social housing under the Westbury Partnerships brand name. It also provides broadband services.

Persimmon Fundamentals Summary

How do Persimmon's earnings and revenue compare to its market cap?
PSN fundamental statistics
Market CapUK£8.71b
Earnings (TTM)UK£792.00m
Revenue (TTM)UK£3.98b

11.1x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSN income statement (TTM)
RevenueUK£3.98b
Cost of RevenueUK£2.89b
Gross ProfitUK£1.09b
ExpensesUK£297.70m
EarningsUK£792.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 02, 2022

Earnings per share (EPS)2.48
Gross Margin27.39%
Net Profit Margin19.91%
Debt/Equity Ratio0%

How did PSN perform over the long term?

See historical performance and comparison

Dividends

8.5%

Current Dividend Yield

95%

Payout Ratio

Valuation

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

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSN (£27.59) is trading below our estimate of fair value (£34.81)

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


Price To Earnings Ratio

PE vs Industry: PSN is good value based on its PE Ratio (11.1x) compared to the UK Consumer Durables industry average (12.3x).

PE vs Market: PSN is good value based on its PE Ratio (11.1x) compared to the UK market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PSN is poor value based on its PEG Ratio (6.7x)


Price to Book Ratio

PB vs Industry: PSN is overvalued based on its PB Ratio (2.5x) compared to the GB Consumer Durables industry average (1.4x).


Future Growth

How is Persimmon forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's forecast earnings growth (1.7% per year) is above the savings rate (0.9%).

Earnings vs Market: PSN's earnings (1.7% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: PSN's revenue (5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: PSN's revenue (5% 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 (22.3%)


Past Performance

How has Persimmon performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSN has high quality earnings.

Growing Profit Margin: PSN's current net profit margins (19.9%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: PSN's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: PSN's earnings growth over the past year (17.3%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: PSN earnings growth over the past year (17.3%) underperformed the Consumer Durables industry 57.9%.


Return on Equity

High ROE: PSN's Return on Equity (22.2%) is considered high.


Financial Health

How is Persimmon's financial position?


Financial Position Analysis

Short Term Liabilities: PSN's short term assets (£4.3B) exceed its short term liabilities (£911.3M).

Long Term Liabilities: PSN's short term assets (£4.3B) exceed its long term liabilities (£255.1M).


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?

8.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSN's dividend (8.52%) is higher than the bottom 25% of dividend payers in the UK market (1.38%).

High Dividend: PSN's dividend (8.52%) is in the top 25% of dividend payers in the UK market (4.15%)


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 (94.6%), 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 (91.3% payout ratio).


Next Steps

Management

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

15.6yrs

Average management tenure


CEO

Dean Finch (54 yo)

1.17yrs

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 ($USD1.01M) is below average for companies of similar size in the UK market ($USD3.66M).

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 (15.6 years average tenure).


Board Members

Experienced Board: PSN's board of directors are not considered experienced ( 1.6 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: 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 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£8.709b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/29 22:55
End of Day Share Price2021/11/29 00:00
Earnings2021/06/30
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.