PersimmonLSE:PSN +5.81%79 Net Margin % is 8.26% as of Dec. 2025, which is 58% below its 10-year median of 19.56. GuruFocus rates LSE:PSN with a GF Score™ of 79/100 and a GF Value™ of £14.89 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 91 Homebuilding & Construction companies, Persimmon ranks better than 63.74% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Persimmon's Net Income for the
six
months ended in Dec. 2025 was £186 Mil. Persimmon's Revenue for the
six
months ended in Dec. 2025 was £2,249 Mil. Therefore, Persimmon's net margin for the quarter that ended in Dec. 2025 was 8.26%.
The historical rank and industry rank for Persimmon's Net Margin % or its related term are showing as below:
LSE:PSN'
s Net Margin % Range Over the Past 10 Years
Min: 7.62 Med: 19.56 Max: 23.72
Current: 7.62
LSE:PSN's Net Margin % is ranked better than 63.74% of 91
companies
in the Homebuilding & Construction industry
Industry Median: 4.73
vs LSE:PSN: 7.62
Persimmon (LSE:PSN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Persimmon Net Margin % Related Terms
Persimmon Net Margin % Historical Data
* Premium members only.
The historical data trend for Persimmon's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Residential Construction subindustry, Persimmon's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Persimmon Net Margin % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Persimmon's Net Margin % distribution charts can be found below:
* The bar in red indicates where Persimmon's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Persimmon (LSE:PSN) has a Net Margin % of 8.26% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Persimmon and its competitors. This is 58% below median its historical median of 19.56. Over the past decade, Persimmon's Net Margin % has ranged from 7.62 to 23.72. According to the industry distribution chart, Persimmon ranks #33 out of 91 companies in the Homebuilding & Construction industry, placing it in the top 36.3%.
Is Persimmon's Net Margin % too high?
Persimmon's current Net Margin % of 8.26% is 58% below median its 10-year median of 19.56. Over the past 10 years, this metric has ranged from a low of 7.62 to a high of 23.72. The Homebuilding & Construction industry median Net Margin % is 4.73. Persimmon's value of 8.26% is 74.6% above this industry median. Based on the distribution chart, Persimmon ranks #33 out of 91 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Persimmon has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Persimmon's Net Margin % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Persimmon ranks #33 out of 91 companies for Net Margin %. This puts Persimmon in the upper half of its industry. The industry median Net Margin % is 4.73. Persimmon's value of 8.26% is 74.6% above this benchmark. Historically, Persimmon's own Net Margin % has ranged from 7.62 to 23.72 over the past decade. While the company's 10-year median is 19.56 vs. the industry median of 4.73, Persimmon has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Homebuilding & Construction company?
The median Net Margin % among Homebuilding & Construction companies is 4.73, based on 91 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Persimmon's current Net Margin % of 8.26% is 74.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Persimmon and its competitors. For the Homebuilding & Construction industry, the median Net Margin % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Persimmon's current Net Margin % is 8.26%, which is 58% below median its own 10-year median of 19.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Persimmon stock overvalued right now?
Based on GuruFocus' analysis, Persimmon (LSE:PSN) is currently considered Modestly Undervalued. The stock's GF Value™ is £14.89, compared to a current price of £10.93 — trading 26.6% below its estimated fair value. The current Net Margin % is 8.26%, which is 58% below median its 10-year median of 19.56 and 74.6% above the Homebuilding & Construction industry median of 4.73. Persimmon's overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Persimmon (LSE:PSN), the current Net Margin % is 8.26% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Persimmon (LSE:PSN) Overvalued in 2026?
Based on GuruFocus' analysis, Persimmon stock appears to be undervalued.
The current stock price of £10.93 is trading 26.6% below its estimated GF Value™ of £14.89.
GuruFocus considers Persimmon to be Modestly Undervalued.
Key valuation signals for LSE:PSN:
Net Margin %: 8.26% (58% below median its 10-year median of 19.56)
GF Value™: £14.89 vs. price of £10.93 (26.6% below fair value)
Industry Position: 74.6% above the Homebuilding & Construction median (#33 of 91)
No single metric tells the full story. See the LSE:PSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Persimmon is one of the UK's largest residential property developers by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market; Persimmon Homes' average selling price in 2024 was 20% below the UK new-build national average. Like peers, Persimmon has traditionally operated in the land development, construction, and sales and marketing segments of the residential property development value chain. However, unlike peers, in recent years, Persimmon has begun manufacturing its own bricks, tiles, and timber frames, aiming to secure the supply and quality of key materials and manage build cost inflation.
79GF Score
Get the complete analysis for LSE:PSN
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:PSN has been successfully added to your 
