Persimmon
Market Cap
UK£9.5b
Last Updated
2020/01/23 20:42 UTC
Data Sources
Company Financials +
Executive Summary
Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record.
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
5.8%
PSN
3.2%
GB Consumer Durables
-1.1%
GB Market
1 Year Return
26.7%
PSN
33.0%
GB Consumer Durables
11.8%
GB Market
Return vs Industry: PSN underperformed the UK Consumer Durables industry which returned 34.2% over the past year.
Return vs Market: PSN exceeded the UK Market which returned 12.7% over the past year.
Shareholder returns
| PSN | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.8% | 3.2% | -1.1% |
| 30 Day | 14.9% | 8.4% | -0.8% |
| 90 Day | 28.3% | 23.2% | 5.2% |
| 1 Year | 41.1%26.7% | 42.5%33.0% | 17.7%11.8% |
| 3 Year | 106.2%59.9% | 86.1%55.5% | 21.3%5.8% |
| 5 Year | 169.5%87.6% | 146.3%85.0% | 40.0%7.7% |
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
1 week ago | Simply Wall St
Do Institutions Own Shares In Persimmon Plc (LON:PSN)?3 weeks ago | Simply Wall St
Persimmon Plc (LON:PSN) Earns A Nice Return On Capital Employed1 month ago | Simply Wall St
Here's What Persimmon Plc's (LON:PSN) P/E Ratio Is Telling UsValuation
Is Persimmon undervalued compared to its fair value and its price relative to the market?
46.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSN (£27.96) is trading below our estimate of fair value (£55.92)
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 (10.1x) compared to the Consumer Durables industry average (12.1x).
PE vs Market: PSN is good value based on its PE Ratio (10.1x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: PSN is poor value based on its PEG Ratio (288.1x)
Price to Book Ratio
PB vs Industry: PSN is overvalued based on its PB Ratio (3.1x) compared to the GB Consumer Durables industry average (1.7x).
Next Steps
Future Growth
How is Persimmon forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
0.009%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSN's forecast earnings growth (0.04% per year) is below the savings rate (0.5%).
Earnings vs Market: PSN's earnings (0.04% per year) are forecast to grow slower than the UK market (11.7% per year).
High Growth Earnings: PSN's earnings are forecast to grow, but not significantly.
Revenue vs Market: PSN's revenue (2.3% per year) is forecast to grow slower than the UK market (3.6% per year).
High Growth Revenue: PSN's revenue (2.3% 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 (24.6%)
Next Steps
Past Performance
How has Persimmon performed over the past 5 years?
19.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSN has high quality earnings.
Growing Profit Margin: PSN's current net profit margins (24%) are higher than last year (22.7%).
Past Earnings Growth Analysis
Earnings Trend: PSN's earnings have grown by 19.5% per year over the past 5 years.
Accelerating Growth: PSN's earnings growth over the past year (5%) is below its 5-year average (19.5% per year).
Earnings vs Industry: PSN earnings growth over the past year (5%) exceeded the Consumer Durables industry 4.4%.
Return on Equity
High ROE: PSN's Return on Equity (31%) is considered high.
Return on Assets
Return on Capital Employed
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 (£1.5B).
Long Term Liabilities: PSN's short term assets (£4.1B) exceed its long term liabilities (£278.3M).
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
Inventory Level: PSN has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if PSN's debt is covered by short term assets.
Next Steps
Dividend
What is Persimmon's current dividend yield, its reliability and sustainability?
7.79%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PSN's dividend (8.4%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: PSN's dividend (8.4%) is in the top 25% of dividend payers in the UK market (4.95%)
Stability and Growth of Payments
Stable Dividend: PSN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: PSN's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PSN's dividends in 3 years are forecast to be covered by earnings (82.8% payout ratio).
Next Steps
Management
What is the CEO of Persimmon's salary, the management and board of directors tenure and is there insider trading?
13.8yrs
Average management tenure
CEO
Dave Jenkinson (52yo)
1.1yrs
Tenure
UK£24,986,383
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 ($USD32.49M) is above average for companies of similar size in the UK market ($USD4.48M).
Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.
Management Age and Tenure
13.8yrs
Average Tenure
58yo
Average Age
Experienced Management: PSN's management team is seasoned and experienced (13.8 years average tenure).
Board Age and Tenure
3.7yrs
Average Tenure
55yo
Average Age
Experienced Board: PSN's board of directors are considered experienced (3.7 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 658 |
| Max Price | UK£20.41 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 658 |
| Max Price | UK£20.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Group Finance Director & Director |
| Shares | 476,919 |
| Max Price | UK£24.33 |
| Entity | Individual |
| Role | Chief Executive Officer Group Chief Executive & Executive Director |
| Shares | 5,120 |
| Max Price | UK£24.44 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.
Management Team
Mike Killoran (58yo)
Group Finance Director & Director
- Tenure: 21yrs
- Compensation: UK£25.96m
Duncan Davidson (77yo)
Founder & Life President
- Tenure: 13.8yrs
- Compensation: UK£94.97k
Dave Jenkinson (52yo)
Group Chief Executive & Executive Director
- Tenure: 1.1yrs
- Compensation: UK£24.99m
Tracy Davison
Company Secretary
Peter Jordan
Group Planning & Land Director
Martyn Clark
Regional Divisional Director for Yorkshire & South East
Board Members
Roger Devlin (61yo)
Chairman
- Tenure: 1.6yrs
- Compensation: UK£175.00k
Mike Killoran (58yo)
Group Finance Director & Director
- Tenure: 21yrs
- Compensation: UK£25.96m
Simon Litherland (54yo)
Independent Non-Executive Director
- Tenure: 2.8yrs
- Compensation: UK£60.00k
Marion Sears (56yo)
Independent Non-Executive Director
- Tenure: 7yrs
- Compensation: UK£90.00k
Nigel Mills (63yo)
Senior Independent Director
- Tenure: 2.1yrs
- Compensation: UK£117.55k
Dave Jenkinson (52yo)
Group Chief Executive & Executive Director
- Tenure: 1.1yrs
- Compensation: UK£24.99m
Claire Thomas (49yo)
Independent Non-Executive Director
- Tenure: 0.4yrs
Rachel Kentleton (50yo)
Independent Non-Executive Director
- Tenure: 4.6yrs
- Compensation: UK£75.00k
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£9.544b
- Shares outstanding: 316.55m
- Website: https://www.persimmonhomes.com
Number of Employees
Location
- Persimmon Plc
- Persimmon House
- Fulford
- York
- North Yorkshire
- YO19 4FE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PSMM.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| PSN | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| OHP | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| PSNL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| PSMM.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 20:42 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.