Want to see PSMMY full AI Analyst Report?
Top Page
Persimmon
(OTC:PSMMY)
Select Model
Select Model
Rating:68Neutral
Price Target:
$38.00
â–²(18.75% Upside)
Action:Downgraded
Date:08/07/26
PSMMY scores in the upper-mid range primarily due to strong balance-sheet strength and supportive valuation (moderate P/E and high dividend yield). The score is constrained by weaker earnings quality signals (volatile cash flow and negative 2025 free cash flow) and ongoing margin pressure highlighted in the earnings call, while technicals are constructive but not fully confirmed given stretched momentum and the price still below the 200-day average.
Positive Factors
Balance-sheet resilience
Extremely low leverage and a large equity base give Persimmon substantial financial flexibility in a cyclical housing market. This supports continued land investment, helps absorb fluctuations in completions and cash flow, and reduces balance-sheet risk over the next several quarters.
Negative Factors
Weak and volatile cash generation
Weak cash conversion despite positive reported earnings reduces the funds available for land purchases, dividends and other investment. The volatile multi-year cash pattern also indicates that profitability is not consistently translating into liquidity, which can constrain flexibility during housing-cycle changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet resilience
Extremely low leverage and a large equity base give Persimmon substantial financial flexibility in a cyclical housing market. This supports continued land investment, helps absorb fluctuations in completions and cash flow, and reduces balance-sheet risk over the next several quarters.
Read all positive factors
Persimmon (PSMMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.26B
Dividend Yield4.9%
Average Volume (3M)934.00
Price to Earnings (P/E)13.0
Beta (1Y)0.69
Revenue Growth21.76%
EPS Growth23.36%
CountryUS
Employees4,675
SectorConsumer Cyclical
Sector Strength84
IndustryResidential Construction
Share Statistics
EPS (TTM)1.90
Shares Outstanding160,666,550
10 Day Avg. Volume0
30 Day Avg. Volume934
Financial Highlights & Ratios
PEG Ratio4.34
Price to Book (P/B)1.20
Price to Sales (P/S)1.15
P/FCF Ratio-367.77
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit8.20
Enterprise Value/Ebitda10.11
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 H...
How the Company Makes Money
Persimmon makes money primarily by developing and selling new-build residential properties. Its core revenue stream is the sale of completed homes to private buyers and other purchasers, with revenue typically recognized when legal completion occu...
Persimmon Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Positive
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.Positive Updates
Volume and Completions Growth
New home completions rose 13% to 5,189 in H1 (and are up 22% over three years), driven by higher outlets and improved sales rates; average outlets were 273 (versus 272 last year).
Negative Updates
Margin Pressure and Cost Inflation
Gross margin was lower (reported gross margin ~18%) and operating margin reduced from 13.1% to 12.8% due to product mix (more affordable/HA units), higher incentives and embedded build cost inflation; management expects continued margin pressure into H2 and 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
Volume and Completions Growth
New home completions rose 13% to 5,189 in H1 (and are up 22% over three years), driven by higher outlets and improved sales rates; average outlets were 273 (versus 272 last year).
Read all positive 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
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
38
Negative
| 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
Positive
32.00
Price Trends
31.25
Positive
29.65
Positive
31.58
Positive
Market Momentum
0.73
Negative
55.06
Neutral
67.06
Neutral
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 32 is above the 20-day moving average (MA) of 31.48, above the 50-day MA of 31.25, and above the 200-day MA of 31.58, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 67.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSMMY.
Persimmon Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $21.69B | 11.77 | 14.73% | 0.90% | -7.28% | -26.86% | |
69 Neutral | $37.76B | 12.82 | 12.77% | 1.33% | -3.54% | -15.86% | |
68 Neutral | $5.26B | 13.03 | 8.45% | 4.90% | 21.76% | 23.36% | |
63 Neutral | $19.19B | 15.09 | 6.03% | 2.51% | -8.01% | -47.77% | |
63 Neutral | $4.16B | 13.30 | 6.38% | 2.93% | -13.27% | -45.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $2.78B | 12.60 | 5.93% | 2.19% | -20.80% | -50.23% |
* Consumer Cyclical Sector Average
PSMMY
Persimmon
32.79
3.26
11.05%
DHI
DR Horton
135.00
-34.50
-20.35%
KBH
KB Home
45.75
-17.59
-27.77%
LEN
Lennar
79.81
-44.08
-35.58%
MTH
Meritage
63.85
-6.37
-9.07%
PHM
PulteGroup
115.73
-18.60
-13.85%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.