Persimmon AI Stock Analysis
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Persimmon (PSMMY) AI Stock Analysis
Persimmon
(Other OTC:PSMMY)
The score is supported primarily by strong balance-sheet quality, positive operating momentum, and reasonable valuation with a substantial dividend yield. The main constraints are deteriorating cash generation, margin pressure, remediation obligations, and near-term sales and cost risks.
Persimmon (PSMMY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $5.52B
- Dividend Yield
- 4.80%
- Average Volume (3M)
- 5,686
- Price to Earnings (P/E)
- 13.5
- Beta (1Y)
- 0.68
- Revenue Growth
- 21.76%
- EPS Growth
- 23.36%
- Country
- US
- Employees
- 4,675
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Residential Construction
Persimmon Business Overview & Revenue Model
Company Description
Persimmon Plc operates as a prominent residential property developer throughout the United Kingdom, inclusive of its subsidiary companies. The firm offers a varied portfolio of housing, encompassing family residences marketed under the Persimmon Home...
How the Company Makes Money
Persimmon makes money primarily by building and selling new-build homes in the UK. Its core revenue stream is the sale of completed residential properties to private buyers, with revenue recognized when legal completion occurs and the home is transfe...
Persimmon Earnings Call Summary
The call presents a decidedly positive operational story: clear volume-led growth (completions +13%), higher operating profit (+10%) and stronger order book and land/pipeline positions. These positives are tempered by meaningful near-term margin headwinds from embedded build-cost inflation, incentives, remediation liabilities (GBP 206m) and a short-term sales softening. Management retains a strong balance sheet, medium-term targets (20% operating margin and improved ROCE) and active mitigation plans (self-help cost savings, vertical integration, new house types), and reiterates guidance for c.12,500 homes in 2026. Overall the positives around growth, cash/land position and strategic progress outweigh the near-term cost and execution risks.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance reiterated that, assuming stable market conditions, Persimmon expects to deliver around 12,500 homes in FY26 (the top end of prior guidance) with underlying PBT broadly in line with consensus and year‑end net cash in line with previous guidance; adjusted gearing was 18% at 30 June (including land creditors) and could be around 20% at year‑end. Key H1 metrics underpinning that view include 5,189 completions (+13%), private completions 4,261 (+7%), average outlets 273, net private weekly sales 205 (+7%), a private sales rate (incl. bulk) of 0.75 (5‑week rate 0.72 incl. bulk, 0.59 excl.), a £1.9bn total forward order book (private book £1.3bn, up 5%, ~8% sold for the year; affordable order book £600m fully secured), underlying PBT £170m (+3%), underlying operating profit £189m (+10%) with a 12.8% operating margin, housing revenue ~£1.5bn, gross profit £267m (gross margin 18%), underlying EPS 38p (+3%), ROCE 11.3% (+10%), net debt £165m, PX stock £168m, £1bn committed bank facilities, owned/controlled land bank ~81,000 plots (strategic/promoter land ~93,000 plots), 6,123 detailed planning plots secured in H1 (118% of completions), and remediation items: closing provision £206m, H1 remediation spend £24m (total >£200m to date) with c.£100m planned this year; management also flags an embedded cost headwind of c.£40–50m over 18 months (half already identified to be mitigated) and reiterates medium‑term ambitions of a 20% operating margin and improved ROCE.
Persimmon Financial Statement Overview
Summary
Strong balance-sheet stability from negligible leverage and a substantial equity base supports the score. However, margin compression and sharply weaker operating and free cash flow indicate meaningful execution and cash-generation risks.
Income Statement
72PositiveBalance Sheet
92Very PositiveCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.97B | 3.75B | 3.20B | 2.77B | 3.82B | 3.61B |
| Gross Profit | 581.33M | 641.72M | 580.40M | 795.10M | 867.50M | 1.08B |
| EBITDA | 471.51M | 456.40M | 400.40M | 368.80M | 738.20M | 973.50M |
| Net Income | 305.24M | 279.44M | 267.10M | 255.40M | 561.00M | 787.20M |
Balance Sheet | ||||||
| Total Assets | 5.48B | 5.31B | 4.83B | 4.79B | 5.03B | 4.79B |
| Cash, Cash Equivalents and Short-Term Investments | 109.34M | 116.79M | 258.60M | 420.10M | 861.60M | 1.25B |
| Total Debt | 275.00M | 16.77M | 14.50M | 188.40M | 498.00M | 436.90M |
| Total Liabilities | 1.86B | 1.70B | 1.33B | 1.37B | 1.59B | 1.17B |
| Stockholders Equity | 3.61B | 3.61B | 3.51B | 3.42B | 3.44B | 3.63B |
Cash Flow | ||||||
| Free Cash Flow | -164.05M | -11.74M | 52.60M | -166.20M | 371.80M | 763.90M |
| Operating Cash Flow | -136.85M | 27.97M | 84.90M | -129.80M | 402.30M | 784.80M |
| Investing Cash Flow | 37.19M | 26.21M | -45.00M | -42.90M | -29.80M | -18.20M |
| Financing Cash Flow | 82.38M | -192.68M | -201.40M | -268.80M | -757.50M | -754.10M |
Persimmon Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSMMY, the sentiment is Positive. The current price of 33.96 is below the 20-day moving average (MA) of 34.06, above the 50-day MA of 32.47, and above the 200-day MA of 30.85, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSMMY.
Persimmon Peers Comparison
Overall Rating
PSMMY74Outperform
DHI71Outperform
PHM66Neutral
LEN65Neutral
MTH52Neutral
KBH50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 74Outperform | $5.49B | 13.52 | 8.45% | 4.80% | 21.76% | 23.36% | |
| 71Outperform | $39.21B | 14.34 | 12.22% | 1.27% | -3.52% | -12.68% | |
| 66Neutral | $23.36B | 13.51 | 13.80% | 0.82% | -9.35% | -27.96% | |
| 65Neutral | $19.83B | 15.80 | 6.03% | 2.39% | -8.01% | -47.77% | |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| 52Neutral | $4.17B | 14.49 | 5.84% | 2.90% | -14.89% | -41.01% | |
| 50Neutral | $2.94B | 13.20 | 5.93% | 2.09% | -20.80% | -50.30% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PSMMY | Persimmon Plc Unsponsored ADR | 33.96 | 3.06 | 9.89% | |
| DHI | D.R. Horton Inc | 145.55 | 9.47 | 6.96% | |
| KBH | KB Home | 47.90 | -9.58 | -16.67% | |
| LEN | Lennar Corporation | 83.61 | -27.99 | -25.08% | |
| MTH | Meritage Homes Corp | 64.47 | 1.68 | 2.67% | |
| PHM | Pultegroup | 127.01 | 14.09 | 12.48% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 08, 2026
