DB:XHSB

Stock Analysis Report

Executive Summary

HomeServe plc, together with its subsidiaries, provides home repair and improvement services to homeowners under the HomeServe brand.


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has HomeServe's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XHSB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

XHSB

1.3%

DE Commercial Services

-0.2%

DE Market


1 Year Return

42.3%

XHSB

-6.5%

DE Commercial Services

13.7%

DE Market

Return vs Industry: XHSB exceeded the German Commercial Services industry which returned -6.5% over the past year.

Return vs Market: XHSB exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

XHSBIndustryMarket
7 Day1.1%1.3%-0.2%
30 Day1.4%-1.6%0.3%
90 Day8.8%3.6%3.7%
1 Year45.0%42.3%-3.2%-6.5%17.2%13.7%
3 Year147.4%132.5%13.0%3.2%15.4%5.3%
5 Year278.0%213.6%3.6%-10.9%21.3%4.7%

Price Volatility Vs. Market

How volatile is HomeServe's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is HomeServe undervalued compared to its fair value and its price relative to the market?

39.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: XHSB (€15.82) is trading above our estimate of fair value (€14.03)

Significantly Below Fair Value: XHSB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: XHSB is poor value based on its PE Ratio (39.5x) compared to the Commercial Services industry average (31.8x).

PE vs Market: XHSB is poor value based on its PE Ratio (39.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: XHSB is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: XHSB is overvalued based on its PB Ratio (7.3x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is HomeServe forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XHSB's forecast earnings growth (12.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: XHSB's earnings (12.6% per year) are forecast to grow slower than the German market (13.1% per year).

High Growth Earnings: XHSB's earnings are forecast to grow, but not significantly.

Revenue vs Market: XHSB's revenue (8.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: XHSB's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: XHSB's Return on Equity is forecast to be high in 3 years time (23.6%)


Next Steps

Past Performance

How has HomeServe performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XHSB has high quality earnings.

Growing Profit Margin: XHSB's current net profit margins (10.4%) are higher than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: XHSB's earnings have grown by 19.8% per year over the past 5 years.

Accelerating Growth: XHSB's earnings growth over the past year (15.1%) is below its 5-year average (19.8% per year).

Earnings vs Industry: XHSB earnings growth over the past year (15.1%) exceeded the Commercial Services industry 10.9%.


Return on Equity

High ROE: XHSB's Return on Equity (18.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is HomeServe's financial position?


Financial Position Analysis

Short Term Liabilities: XHSB's short term assets (£467.4M) exceed its short term liabilities (£373.9M).

Long Term Liabilities: XHSB's short term assets (£467.4M) do not cover its long term liabilities (£511.8M).


Debt to Equity History and Analysis

Debt Level: XHSB's debt to equity ratio (77.1%) is considered high.

Reducing Debt: XHSB's debt to equity ratio has increased from 43.7% to 77.1% over the past 5 years.

Debt Coverage: XHSB's debt is well covered by operating cash flow (33.7%).

Interest Coverage: XHSB's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet

Inventory Level: XHSB has a low level of unsold assets or inventory.

Debt Coverage by Assets: XHSB's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is HomeServe's current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.3%markettop25%3.7%industryaverage3.4%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: XHSB's dividend (1.64%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: XHSB's dividend (1.64%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: XHSB's dividends per share have been stable in the past 10 years.

Growing Dividend: XHSB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.6%), XHSB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: XHSB's dividends in 3 years are forecast to be covered by earnings (57.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Richard Harpin (54yo)

15.8yrs

Tenure

UK£4,749,000

Compensation

Mr. Richard David Harpin, BA (Hons) CDip AF is a CO-Chief Operating Officer of HomeServe, PLC since December 31, 2018. He is a Founder of the company and has been the Chief Executive Officer of Homeserve P ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD6.11M) is above average for companies of similar size in the German market ($USD3.16M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Harpin
Founder15.8yrsUK£4.75m12.11% £631.5m
David Bower
Co-COO & Group CFO & Director3yrsUK£974.00k0.037% £1.9m
Thomas Rusin
Co-COO & Global CEO of HomeServe Membership & Executive Director2.8yrsUK£3.51m0.20% £10.6m
Simon Lewis
Head of Investor Relations0yrsno datano data
Miriam McKay
Group Communications & IR Director0yrsno datano data
Anna Maughan
Company Secretary11.6yrsno datano data
H. Phillips
Chief Executive Officer of Global Partnerships9.9yrsno data0.017% £888.4k
Guillaume Huser
Chief Executive Officer of Homeserve France4.8yrsno data0.0059% £305.5k
John Kitzie
CEO of HomeServe North America1.8yrsno datano data
Linda Hardy
Finance Director0yrsno datano data

4.8yrs

Average Tenure

52yo

Average Age

Experienced Management: XHSB's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Harpin
Founder15.8yrsUK£4.75m12.11% £631.5m
David Bower
Co-COO & Group CFO & Director3yrsUK£974.00k0.037% £1.9m
Thomas Rusin
Co-COO & Global CEO of HomeServe Membership & Executive Director2.8yrsUK£3.51m0.20% £10.6m
John Michael Gibson
Non-Executive Chairman9.8yrsUK£250.00k0.045% £2.3m
Edward Fitzmaurice
Non-Executive Director2.8yrsUK£55.00k0.23% £12.3m
Ronald McMillan
Non-Executive Director2.3yrsUK£65.00k0.0046% £237.7k
Katrina Cliffe
Senior Independent Non-Executive Director0.3yrsUK£62.00k0.0045% £235.1k
Olivier Grémillon
Non-Executive Director0.9yrsno datano data

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Board: XHSB's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: XHSB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HomeServe plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HomeServe plc
  • Ticker: XHSB
  • Exchange: DB
  • Founded: 1991
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£4.370b
  • Listing Market Cap: UK£5.214b
  • Shares outstanding: 334.63m
  • Website: https://www.homeserveplc.com

Number of Employees


Location

  • HomeServe plc
  • Cable Drive
  • Walsall
  • West Midlands
  • WS2 7BN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSVLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
XHSBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HMSV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HSVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992

Biography

HomeServe plc, together with its subsidiaries, provides home repair and improvement services to homeowners under the HomeServe brand. The company offers home assistance for plumbing, heating, electrical, locks, glazing, pest control, and technology; and solution for the installation, repair, maintenance, and replacement of heating, ventilation, and air conditioning. It also operates an online marketplace to find checked, vetted, and reviewed local tradespeople for a range of home repairs and improvements. In addition, the company engages in the development and distribution of technology to enable home automation, including LeakBot, smart thermostats, and connected boilers. It serves approximately 8.4 million customers through a network of engineers and sub-contractors in the United Kingdom, North America, France, Spain, Italy, Portugal, Brazil, Mexico, Argentina, Chile, Columbia, and internationally. The company was incorporated in 1991 and is headquartered in Walsall, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:54
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.