Persimmon PLC
LSE:PSN

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Persimmon PLC
LSE:PSN
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Price: 1 182 GBX -2.39%
Market Cap: 3.8B GBX
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Operating Margin
Persimmon PLC

13.7%
Current
19%
Average
5.4%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
13.7%
=
Operating Profit
397.9m
/
Revenue
2.9B

Operating Margin Across Competitors

Country UK
Market Cap 3.8B GBP
Operating Margin
14%
Country US
Market Cap 45.4B USD
Operating Margin
17%
Country US
Market Cap 37.4B USD
Operating Margin
15%
Country US
Market Cap 28B EUR
Operating Margin
17%
Country US
Market Cap 25.2B USD
Operating Margin
20%
Country US
Market Cap 22.6B USD
Operating Margin
21%
Country JP
Market Cap 2.4T JPY
Operating Margin
9%
Country US
Market Cap 12.7B USD
Operating Margin
19%
Country US
Market Cap 9.2B USD
Operating Margin
17%
Country UK
Market Cap 6.8B GBP
Operating Margin
12%
Country JP
Market Cap 1.1T JPY
Operating Margin
10%
No Stocks Found

Persimmon PLC
Glance View

Market Cap
3.8B GBX
Industry
Consumer products

Persimmon PLC is a prominent player in the UK’s residential construction industry, deeply woven into the country’s architectural and economic fabric. Founded in 1972, the company has carved out a robust reputation as one of the leading housebuilding enterprises, focusing primarily on constructing homes for sale under various recognizable brands such as Persimmon Homes, Charles Church, and Westbury Partnerships. With a business model centered around volume building, Persimmon sources land, secures planning permission, and builds homes across a diverse range of styles and price points. This extensive process is aimed at catering to a broad demographic, from first-time buyers to those seeking larger, family-oriented dwellings, ensuring a steady flow of revenue despite economic fluctuations. The company's financial engine is driven by a strategic approach to land acquisition and development, making it critical to Persimmon's profitability and sustainability. By securing land at competitive prices and maintaining a forward land bank, Persimmon has managed to keep construction costs per unit low while ensuring a steady pipeline of future projects. This, coupled with efficient supply chain management and cost-effective construction practices, allows the company to maintain attractive margins. Mortgage availability and government initiatives such as the Help to Buy scheme have been instrumental, enabling more consumers to purchase homes, thus driving up Persimmon's sales and profits. Through its strategic land investments and diversified product offerings, Persimmon continues to profit from both steady demand in the housing market and its ability to deliver homes efficiently, cementing its position as a cornerstone of the UK housing sector.

PSN Intrinsic Value
1 508.29 GBX
Undervaluation 22%
Intrinsic Value
Price

See Also

Discover More
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
13.7%
=
Operating Profit
397.9m
/
Revenue
2.9B
What is the Operating Margin of Persimmon PLC?

Based on Persimmon PLC's most recent financial statements, the company has Operating Margin of 13.7%.