Persimmon PSN.L
Persimmon is a UK homebuilder that develops and sells single-family and terraced houses, primarily in the south of England, with a business model focused on land acquisition and the construction of affordable homes. Persimmon shows solid financial health (ND/EBITDA 0.33, liquidity 4.21) and attractive growth (revenue +14.9%, earnings +19.4%), with reasonable valuation (P/E 14.09, PEG 0.76). However, quality is weak (ROE 8.61, gross margin 16.62) and free cash flow conversion is very negative (-41.44), weighing on its profile.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Persimmon is a UK homebuilder that develops and sells single-family and terraced houses, primarily in the south of England, with a business model focused on land acquisition and the construction of affordable homes. Persimmon shows solid financial health (ND/EBITDA 0.33, liquidity 4.21) and attractive growth (revenue +14.9%, earnings +19.4%), with reasonable valuation (P/E 14.09, PEG 0.76). However, quality is weak (ROE 8.61, gross margin 16.62) and free cash flow conversion is very negative (-41.44), weighing on its profile.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.1 |
| Quality / Moat | 3.3 |
| Valuation | 6.9 |
| Growth | 7.5 |
| Dividend | 4.3 |
| Momentum | 6.0 |
| Risk & Context | 4.2 |
OVERALL SCORE: 5.5/10
Context and risks
Moderate regulatory risk in the UK due to potential changes in housing and planning policies that could affect Persimmon's business model.
News considered in the analysis
- UK Housebuilders surge on new scheme to cut homebuyer deposits — El esquema gubernamental para reducir depósitos podría impulsar la demanda de viviendas nuevas, beneficiando directamente a Persimmon.
- Stifel names two top picks in UK housebuilders amid Japanese takeover interest — El interés de adquisición japonés y la selección de Stifel añaden un sesgo positivo al sector, aunque no es específico de Persimmon.
- Stocks to Watch: Intel, Meta, Oracle — Listado genérico de acciones sin información relevante para Persimmon.
- PSMMY or NVR: Which Is the Better Value Stock Right Now? — Comparativa genérica de valor sin información nueva sobre Persimmon.
- EasyJet returns to FTSE 100 ahead of private equity takeover — Noticia sobre otra empresa sin impacto directo en Persimmon.
Verdict: Hold: fundamentals are decent and the sector is getting a boost from housing policies, but low quality and negative cash generation limit upside potential.
Main risk: Very negative free cash flow conversion (-41.44%) and low gross margin (16.62%) indicate potential pressure on profitability if the housing market cools.
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