PersimmonPSMMF 79 5-Year RORE % is -5,859.46 as of Dec. 2025. GuruFocus rates PSMMF with a GF Score™ of 79/100 and a GF Value™ of $20.48. The stock has 3 warning signs investors should review. Among 85 Homebuilding & Construction companies, Persimmon ranks worse than 100% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Persimmon's 5-Year RORE % for the quarter that ended in Dec. 2025 was -5,859.46%.
The industry rank for Persimmon's 5-Year RORE % or its related term are showing as below:
PSMMF's 5-Year RORE % is ranked worse than 100% of 85
companies
in the Homebuilding & Construction industry
Industry Median: -3.2
vs PSMMF: -5859.46
Persimmon (OTCPK:PSMMF) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Persimmon 5-Year RORE % Related Terms
Persimmon 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Persimmon's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Persimmon's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Persimmon's 5-Year RORE % 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.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2025 and 5-year before.
Persimmon (PSMMF) has a 5-Year RORE % of -5,859.46 as of Dec. 2025. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Persimmon and its competitors. According to the industry distribution chart, Persimmon ranks #85 out of 85 companies in the Homebuilding & Construction industry.
Is Persimmon's 5-Year RORE % too high?
Persimmon's current 5-Year RORE % is -5,859.46. Based on the distribution chart, Persimmon ranks #85 out of 85 companies in the Homebuilding & Construction industry, which is in the bottom quartile relative to peers. Overall, Persimmon has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Persimmon's 5-Year RORE % compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Persimmon ranks #85 out of 85 companies for 5-Year RORE %. This places Persimmon in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Homebuilding & Construction company?
A good 5-Year RORE % depends on the Homebuilding & Construction industry context. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Persimmon and its competitors. Persimmon's current 5-Year RORE % is -5,859.46. 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?
Persimmon (PSMMF) has a current 5-Year RORE % of -5,859.46. The stock's GF Value™ is $20.48, compared to a current price of $15.26 — trading 25.5% below its estimated fair value. The current 5-Year RORE % is -5,859.46. 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 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Persimmon (PSMMF), the current 5-Year RORE % is -5,859.46 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 (PSMMF) Overvalued in 2026?
Based on GuruFocus' analysis, Persimmon stock appears to be undervalued.
The current stock price of $15.26 is trading 25.5% below its estimated GF Value™ of $20.48.
Key valuation signals for PSMMF:
5-Year RORE %: -5,859.46
GF Value™: $20.48 vs. price of $15.26 (25.5% below fair value)
No single metric tells the full story. See the PSMMF 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
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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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