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1. Company Snapshot

1.a. Company Description

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


Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

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1.b. Last Insights on PSN

Persimmon's recent performance has been impacted by mixed analyst signals and evolving market conditions. The company's updated fair value target has shifted to £16.09 from £16.28, reflecting differing views on upside potential. Additionally, Persimmon has expressed concerns over homebuyer confidence amid the Iran conflict and rising mortgage rates. The company's H2 earnings call highlighted "excellent" 2025 results, but also cautioned on market outlook. Analyst opinions are split, with some voices turning more cautious on upside potential. (Source: Various analyst reports)

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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How The Persimmon (LSE:PSN) Investment Story Is Shifting With Mixed Analyst Signals

Mar -24

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Sub-4% mortgage rate ends as NatWest, Barclays, Nationwide and Halifax hike costs

Mar -19

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Persimmon H2 Earnings Call Highlights

Mar -10

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Persimmon flags worries over homebuyer confidence amid Iran conflict

Mar -10

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Iran war could knock UK homebuyer confidence, says builder Persimmon

Mar -10

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Persimmon Leads FTSE 100 Gainers on Higher Revenue, Pretax Profit

Mar -10

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How The Persimmon (LSE:PSN) Investment Story Is Shifting With Mixed Analyst Signals

Mar -09

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NatWest cuts mortgage costs ahead of spring statement

Feb -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.67%)

6. Segments

Persimmon Homes

Expected Growth: 7.5%

Persimmon Homes' 7.5% growth driven by increasing demand for new homes, strategic landbank expansion, and efficient operations. Government initiatives such as Help to Buy and relaxed planning regulations also support growth. Additionally, Persimmon's focus on affordable housing and partnerships with housing associations contribute to its success.

Westbury Partnerships

Expected Growth: 8.5%

Westbury Partnerships' 8.5% growth is driven by increasing demand for affordable housing, strategic partnerships with local authorities, and Persimmon Plc's investment in modern methods of construction, enhancing efficiency and reducing costs. Additionally, the UK government's 'Help to Buy' scheme and relaxation of planning regulations have boosted demand for new homes, contributing to Westbury's growth.

Charles Church

Expected Growth: 7.8%

Charles Church from Persimmon Plc's 7.8% growth is driven by increasing demand for new homes, strategic land acquisitions, and effective cost management. Additionally, the brand's focus on quality and customer service has led to higher sales rates and improved margins. Furthermore, the UK government's Help to Buy scheme has boosted demand, contributing to the segment's growth.

7. Detailed Products

Homes

Persimmon Plc is a leading UK housebuilder, building a range of homes from apartments to detached family homes.

Part Exchange

Persimmon's Part Exchange scheme allows customers to trade in their existing home when buying a new one.

Help to Buy

Persimmon participates in the UK government's Help to Buy scheme, providing financial assistance to first-time buyers and existing homeowners.

Retirement Homes

Persimmon's retirement homes are designed specifically for older adults, offering a range of amenities and services tailored to their needs.

Land and Planning

Persimmon's land and planning services involve acquiring and developing land for future housing projects.

8. Persimmon Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Persimmon Plc is medium due to the presence of alternative housing options, such as apartments and condominiums, which can substitute for single-family homes.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fact that individual homebuyers have limited negotiating power compared to large developers like Persimmon Plc.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of building materials and services, which gives Persimmon Plc some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the UK housing market, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large developers, including Taylor Wimpey, Barratt Developments, and Berkeley Group, which compete with Persimmon Plc for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.30%
Debt Cost 5.19%
Equity Weight 89.70%
Equity Cost 10.60%
WACC 10.05%
Leverage 11.49%

11. Quality Control: Persimmon Plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Berkeley

A-Score: 6.0/10

Value: 6.4

Growth: 4.1

Quality: 7.2

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Bellway

A-Score: 5.5/10

Value: 4.9

Growth: 5.2

Quality: 5.6

Yield: 6.2

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Persimmon

A-Score: 5.3/10

Value: 6.5

Growth: 1.4

Quality: 5.2

Yield: 8.8

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 5.1/10

Value: 6.8

Growth: 5.2

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Taylor Wimpey

A-Score: 4.8/10

Value: 4.4

Growth: 1.6

Quality: 5.2

Yield: 8.8

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Barratt Developments

A-Score: 4.6/10

Value: 3.5

Growth: 2.4

Quality: 4.6

Yield: 7.5

Momentum: 3.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.0$

Current Price

11.01$

Potential

-0.00%

Expected Cash-Flows