Persimmon Plc (PSN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Galliford Try Holdings Plc

Mears Group Plc

Vistry Group Plc

Crest Nicholson Holdings Plc

Bellway Plc

Taylor Wimpey Plc

Henry Boot Plc

Persimmon Plc

Redrow Plc

MJ Gleeson Plc

Barratt Developments Plc

Why is Persimmon Plc ?

Poor long term growth as Net Sales has grown by an annual rate of 2.42% and Operating profit at -11.31% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at GBP 112.6 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,314.56
DEBT-EQUITY RATIO (HY) Highest at 5.06 %

Below par performance in long term as well as near term

Along with generating -21.86% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Persimmon Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Persimmon Plc

-21.86%

-1.83

32.28%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.42%

EBIT Growth (5y)

-11.31%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.92

Tax Ratio

25.62%

Dividend Payout Ratio

67.23%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

23.47%

ROE (avg)

14.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

8.06

EV to EBITDA

7.68

EV to Capital Employed

0.92

EV to Sales

0.93

PEG Ratio

5.41

Dividend Yield

5.79%

ROCE (Latest)

11.43%

ROE (Latest)

8.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

ROCE(HY)

Highest at 8.02%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.74 times

NET SALES(Q)

Highest at GBP 2,248.5 MM

OPERATING PROFIT(Q)

Highest at GBP 270.8 MM

PRE-TAX PROFIT(Q)

Highest at GBP 252 MM

NET PROFIT(Q)

Highest at GBP 186.74 MM

EPS(Q)

Highest at GBP 0.57

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at GBP 112.6 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,314.56

DEBT-EQUITY RATIO (HY)

Highest at 5.06 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 68.98%

CASH AND EQV(HY)

Lowest at GBP 117 MM

INTEREST(Q)

Highest at GBP 20.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.04 %

Here's what is working for Persimmon Plc

Net Sales

Highest at GBP 2,248.5 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (GBP MM)

Operating Profit

Highest at GBP 270.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Pre-Tax Profit

Highest at GBP 252 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 186.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Inventory Turnover Ratio

Highest at 0.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Persimmon Plc

Interest Coverage Ratio

Lowest at 1,314.56 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at GBP 112.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Debt-Equity Ratio

Highest at 5.06 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at GBP 20.6 MM

in the last five periods and Increased by 100% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Profit Margin

Lowest at 12.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at GBP 117 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 68.98%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at GBP 0.05 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income