Persimmon Plc
Persimmon Plc Fundamental Analysis
Persimmon Plc (PSMMF) shows moderate financial fundamentals with a PE ratio of 13.84, profit margin of 7.62%, and ROE of 8.05%. The company generates $3.7B in annual revenue with strong year-over-year growth of 15.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PSMMF's fundamental strength across five key dimensions:
Efficiency Score
WeakPSMMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPSMMF trades at attractive valuation levels.
Growth Score
ModeratePSMMF shows steady but slowing expansion.
Financial Health Score
ExcellentPSMMF maintains a strong and stable balance sheet.
Profitability Score
WeakPSMMF struggles to sustain strong margins.
Key Financial Metrics
Is PSMMF Expensive or Cheap?
P/E Ratio
PSMMF trades at 13.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PSMMF's PEG of 1.64 indicates fair valuation.
Price to Book
The market values Persimmon Plc at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.31 times EBITDA. This is generally considered low.
How Well Does PSMMF Make Money?
Net Profit Margin
For every $100 in sales, Persimmon Plc keeps $7.62 as profit after all expenses.
Operating Margin
Core operations generate 11.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.05 in profit for every $100 of shareholder equity.
ROA
Persimmon Plc generates $5.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Persimmon Plc generates limited operating cash flow of $28.56M, signaling weaker underlying cash strength.
Free Cash Flow
Persimmon Plc generates weak or negative free cash flow of $-12.01M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.04 in free cash annually.
FCF Yield
PSMMF converts -0.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.99
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How PSMMF Stacks Against Its Sector Peers
| Metric | PSMMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.84 | 23.83 | Better (Cheaper) |
| ROE | 8.05% | 1168.00% | Weak |
| Net Margin | 7.62% | -2451.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 3.99 | 2.57 | Strong Liquidity |
| ROA | 5.37% | -34556.00% (disorted) | Weak |
PSMMF outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Persimmon Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-12.71%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-68.68%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-86.37%
Industry Style: Cyclical, Growth, Discretionary
Declining