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Persimmon Plc

  • Market Cap: Mid Cap
  • Industry: Furniture, Home Furnishing
  • ISIN: GB0006825383
  • LON: PSN
GBP
11.94
0.25 (2.18%)

Sep 22

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Mears Group Plc
Galliford Try Holdings Plc
Vistry Group Plc
Persimmon Plc
Henry Boot Plc
Bellway Plc
Redrow Plc
MJ Gleeson Plc
Barratt Developments Plc
Taylor Wimpey Plc
Crest Nicholson Holdings Plc

Why is Persimmon Plc ?

1
Weak Long Term Fundamental Strength with a -11.31% CAGR growth in Operating Profits over the last 5 years
2
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
3
The company has declared Negative results for the last 8 consecutive quarters
  • OPERATING CASH FLOW(Y) Lowest at GBP -120 MM
  • INTEREST(HY) At GBP 20.2 MM has Grown at 96.12%
  • INTEREST COVERAGE RATIO(Q) Lowest at 995.05
4
With ROE of 8.28%, it has a attractive valuation with a 0.92 Price to Book Value
  • Over the past year, while the stock has generated a return of 8.45%, its profits have risen by 2.2% ; the PEG ratio of the company is 5.4
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Persimmon Plc should be less than 10%
  2. Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Persimmon Plc for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Persimmon Plc
8.45%
-1.50
35.31%
FTSE 100
16.06%
1.36
11.82%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
78.83
Debt to EBITDA (avg)
0.11
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.91
Tax Ratio
27.02%
Dividend Payout Ratio
67.23%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
15.65%
ROE (avg)
14.48%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.92
EV to EBIT
8.06
EV to EBITDA
7.69
EV to Capital Employed
0.92
EV to Sales
0.93
PEG Ratio
5.42
Dividend Yield
5.79%
ROCE (Latest)
11.43%
ROE (Latest)
8.28%
stock-recommendationTechnicals

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
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

5What is working for the Company
ROCE(HY)

Highest at 8.61%

INVENTORY TURNOVER RATIO(HY)

Highest at 0.75 times

-13What is not working for the Company
OPERATING CASH FLOW(Y)

Lowest at GBP -120 MM

INTEREST(HY)

At GBP 20.2 MM has Grown at 96.12%

INTEREST COVERAGE RATIO(Q)

Lowest at 995.05

OPERATING PROFIT MARGIN(Q)

Lowest at 11.64 %

RAW MATERIAL COST(Y)

Grown by 29.01% (YoY

CASH AND EQV(HY)

Lowest at GBP 110 MM

Here's what is working for Persimmon Plc

Inventory Turnover Ratio
Highest at 0.75 times and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation
Highest at GBP 11.9 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Persimmon Plc

Interest Coverage Ratio
Lowest at 995.05 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

Interest
At GBP 20.2 MM has Grown at 96.12%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Operating Cash Flow
Lowest at GBP -120 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)

Operating Profit Margin
Lowest at 11.64 % and Fallen
In each period in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv
Lowest at GBP 110 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost
Grown by 29.01% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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