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ServiceMaster Global Holdings

Executive Summary

ServiceMaster Global Holdings, Inc. provides residential and commercial termite and pest control, restoration, and cleaning services.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has ServiceMaster Global Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SVW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.9%

SVW

0.5%

DE Consumer Services

3.5%

DE Market


1 Year Return

-32.2%

SVW

7.3%

DE Consumer Services

3.0%

DE Market

Return vs Industry: SVW underperformed the German Consumer Services industry which returned 7.3% over the past year.

Return vs Market: SVW underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

SVWIndustryMarket
7 Day3.9%0.5%3.5%
30 Day7.5%-1.7%-0.08%
90 Day29.5%13.1%21.0%
1 Year-32.2%-32.2%9.1%7.3%5.2%3.0%
3 Year-7.9%-7.9%-3.6%-8.4%4.5%-4.0%
5 Year-2.1%-2.1%-45.6%-59.7%11.5%-3.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ServiceMaster Global Holdings undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SVW (€31.6) is trading below our estimate of fair value (€44.34)

Significantly Below Fair Value: SVW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SVW is poor value based on its PE Ratio (64.5x) compared to the Consumer Services industry average (16x).

PE vs Market: SVW is poor value based on its PE Ratio (64.5x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SVW is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SVW is good value based on its PB Ratio (2.2x) compared to the XE Consumer Services industry average (2.8x).


Next Steps

Future Growth

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

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SVW's forecast earnings growth (24.2% per year) is above the savings rate (0.2%).

Earnings vs Market: SVW's earnings (24.2% per year) are forecast to grow faster than the German market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SVW's revenue (4.7% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: SVW's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SVW's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has ServiceMaster Global Holdings performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVW has a large one-off loss of $31.0M impacting its March 31 2020 financial results.

Growing Profit Margin: SVW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SVW's earnings have declined by -18% per year over the past 5 years.

Accelerating Growth: SVW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SVW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (57.7%).


Return on Equity

High ROE: SVW's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is ServiceMaster Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SVW's short term assets ($1.4B) exceed its short term liabilities ($617.0M).

Long Term Liabilities: SVW's short term assets ($1.4B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: SVW's debt to equity ratio (74.4%) is considered high.

Reducing Debt: SVW's debt to equity ratio has reduced from 719% to 74.4% over the past 5 years.

Debt Coverage: SVW's debt is not well covered by operating cash flow (13.5%).

Interest Coverage: SVW's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Next Steps

Dividend

What is ServiceMaster Global Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SVW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SVW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SVW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SVW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SVW's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Naren Gursahaney (58yo)

0.50

Tenure

US$330,000

Compensation

Mr. Naren K. Gursahaney serves as Interim Chief Executive Officer of ServiceMaster Global Holdings, Inc. since January 21, 2020. He has been Director of ServiceMaster Global Holdings Inc. since December 1, ...


Leadership Team

NamePositionTenureCompensationOwnership
Naren Gursahaney
Interim CEO & Chairman of the Board0.50yrUS$330.00k0.0094% $397.3k
Anthony DiLucente
Senior VP & CFO3.42yrsUS$1.66m0.017% $708.7k
Michael Bisignano
Senior VP1.75yrsUS$1.56m0.0013% $54.3k
Dion Persson
Senior Vice President of Strategy & Business Development2.83yrsUS$1.20m0.010% $425.9k
Gregory Rutherford
President of Terminix Commercial1.17yrsUS$1.35m0.0031% $130.9k
John Mullen
VP, Controller & Chief Accounting Officer6.67yrsno data0.0059% $247.9k
Robert Doty
Senior VP & Chief Information Officer2yrsno datano data
Jesse Jenkins
Treasurer & VP of Investor Relationsno datano datano data
Peter Tosches
Senior Vice President of Corporate Communicationsno datano datano data
David Dart
Chief Human Resources Officer1.92yrsno data0.00029% $12.2k

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: SVW's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Naren Gursahaney
Interim CEO & Chairman of the Board0.50yrUS$330.00k0.0094% $397.3k
John Corness
Independent Director4yrsUS$220.00k0.011% $473.9k
Mark Tomkins
Lead Independent Director0.50yrUS$245.00k0.018% $750.4k
Steven Hochhauser
Independent Director2.08yrsUS$200.00k0.0019% $79.5k
Stephen Sedita
Independent Director6.58yrsUS$210.00k0.018% $777.3k
Deborah Caplan
Independent Director1yrUS$125.97k0.0060% $250.8k
Laurie Goldman
Independent Director4.58yrsUS$200.00k0.011% $442.3k

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: SVW's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

ServiceMaster Global Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ServiceMaster Global Holdings, Inc.
  • Ticker: SVW
  • Exchange: DB
  • Founded: 1929
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$4.731b
  • Listing Market Cap: US$4.208b
  • Shares outstanding: 131.93m
  • Website: https://www.servicemaster.com

Number of Employees


Location

  • ServiceMaster Global Holdings, Inc.
  • 150 Peabody Place
  • Memphis
  • Tennessee
  • 38103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SERVNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2014
SVWDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014
0L5MLSE (London Stock Exchange)YesCommon StockGBUSDJun 2014

Biography

ServiceMaster Global Holdings, Inc. provides residential and commercial termite and pest control, restoration, and cleaning services. The company operates through two segments, Terminix and ServiceMaster Brands. The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with termite damage repair guarantees, periodic pest control services, insulation services, crawlspace encapsulation, and wildlife exclusion. The ServiceMaster Brands segment provides restoration, commercial and residential cleaning, cabinet and furniture repair, and home inspection services. The company serves under the AmeriSpec, Copesan, Furniture Medic, McCloud Services, Merry Maids, Nomor, ServiceMaster Clean, ServiceMaster Restore, Terminix, and Terminix Commercial brands. It markets its services to homeowners and businesses through the Internet, direct mail, television and radio advertising, print advertisements, marketing partnerships, door-to-door summer sales programs, telemarketing, and various social media channels and through national sales teams. ServiceMaster Global Holdings, Inc. was founded in 1929 and is headquartered in Memphis, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 21:29
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.