CPSE:ISS

Stock Analysis Report

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Executive Summary

ISS A/S provides workplace and facility service solutions in Continental Europe, Northern Europe, Asia and Pacific, the Americas, and internationally.


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.9%

ISS

6.0%

DK Commercial Services

0.8%

DK Market


1 Year Return

-38.4%

ISS

-11.6%

DK Commercial Services

21.6%

DK Market

Return vs Industry: ISS underperformed the Danish Commercial Services industry which returned -11.7% over the past year.

Return vs Market: ISS underperformed the Danish Market which returned 22% over the past year.


Shareholder returns

ISSIndustryMarket
7 Day9.9%6.0%0.8%
30 Day18.8%11.8%7.5%
90 Day11.6%-4.9%8.2%
1 Year-38.4%-38.4%-10.1%-11.6%24.0%21.6%
3 Year-52.3%-55.7%-15.2%-21.8%42.9%31.1%
5 Year-38.5%-46.9%0.2%-13.8%52.4%33.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ISS (DKK121.1) is trading below our estimate of fair value (DKK205.41)

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


Price To Earnings Ratio

PE vs Industry: ISS is poor value based on its PE Ratio (19.3x) compared to the Commercial Services industry average (15x).

PE vs Market: ISS is poor value based on its PE Ratio (19.3x) compared to the Danish market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: ISS is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ISS is overvalued based on its PB Ratio (1.8x) compared to the XE Commercial Services industry average (1.5x).


Next Steps

Future Growth

How is ISS forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISS's forecast earnings growth (27.7% per year) is above the savings rate (0.3%).

Earnings vs Market: ISS's earnings (27.7% per year) are forecast to grow faster than the Danish market (14.9% per year).

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

Revenue vs Market: ISS's revenue (2.2% per year) is forecast to grow slower than the Danish market (6.4% per year).

High Growth Revenue: ISS's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISS's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has ISS performed over the past 5 years?

-4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISS has a large one-off loss of DKK682.0M impacting its December 31 2019 financial results.

Growing Profit Margin: ISS's current net profit margins (1.5%) are lower than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: ISS's earnings have declined by -4.5% per year over the past 5 years.

Accelerating Growth: ISS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ISS had negative earnings growth (-4.6%) over the past year, making it difficult to compare to the Commercial Services industry average (9.8%).


Return on Equity

High ROE: ISS's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is ISS's financial position?


Financial Position Analysis

Short Term Liabilities: ISS's short term assets (DKK20.0B) exceed its short term liabilities (DKK18.3B).

Long Term Liabilities: ISS's short term assets (DKK20.0B) exceed its long term liabilities (DKK19.2B).


Debt to Equity History and Analysis

Debt Level: ISS's debt to equity ratio (115.3%) is considered high.

Reducing Debt: ISS's debt to equity ratio has reduced from 125.5% to 115.3% over the past 5 years.

Debt Coverage: ISS's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: ISS's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.48%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ISS'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 ISS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: ISS is not paying a notable dividend for the Danish market.


Future Payout to Shareholders

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


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Jeff Gravenhorst (57yo)

10.17yrs

Tenure

ø18,900,000

Compensation

Mr. Jeff Olsen Gravenhorst, MSc (Bus. Adm. & Auditing), serves as Group Chief Executive Officer at ISS Holdings NZ Limited and ISS Group. Mr. Gravenhorst has been Group Chief Executive Officer of ISS A/S s ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD2.87M) is above average for companies of similar size in the Danish market ($USD1.62M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Gravenhorst
Group CEO & Member of Executive Group Management Board10.17yrsø18.90mno data
Pierre-François Riolacci
Group CFO & Member of Executive Group Management Board3.58yrsø23.19mno data
Pernille Benborg
Group VP1.17yrsø471.00kno data
Joseph Nazareth
Head of Group Health9.25yrsø471.00k0.0037% DKK825.7k
Troels Bjerg
Group Chief Operating Officer2.25yrsno datano data
Martin Hansen
Head of Group Investor Relations2.25yrsno datano data
Bjørn Raasteen
Senior VP & Group General Counsel15.42yrsno datano data
Nicholas Ward
Head of Group Strategy2.42yrsno datano data
Todd O'Neill
Head of Group Strategy & Corporate Development and Senior Vice President11.75yrsno datano data
Corinna Refsgaard
Group Chief People & Culture Officer1.58yrsno datano data

6.9yrs

Average Tenure

53yo

Average Age

Experienced Management: ISS's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pernille Benborg
Group VP1.17yrsø471.00kno data
Joseph Nazareth
Head of Group Health9.25yrsø471.00k0.0037% DKK825.7k
Signe Adamsen
Head of Workplace Experience & Alternate Director1.17yrsno datano data
Cynthia Trudell
Independent Director5.17yrsø1.05mno data
Charles Allen
Independent Chairman of the Board6.83yrsø2.45m0.047% DKK10.5m
John Stevens
Independent Director4.17yrsø896.25k0.0011% DKK241.7k
Henrik Poulsen
Independent Deputy Chairman0.17yrø1.06m0.014% DKK3.2m
See Chiang
Independent Director5.17yrsø895.50kno data
Elsie Yiu
Employee Representative Director1.17yrsno datano data
Nada Elboayadi
Employee Representative Director1.17yrsno datano data

2.7yrs

Average Tenure

59yo

Average Age

Experienced Board: ISS's board of directors are not considered experienced ( 2.7 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

ISS A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ISS A/S
  • Ticker: ISS
  • Exchange: CPSE
  • Founded: 1901
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: ø22.376b
  • Shares outstanding: 184.70m
  • Website: https://www.issworld.com

Number of Employees


Location

  • ISS A/S
  • Buddingevej 197
  • Søborg
  • Capital Region of Denmark
  • 2860
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISSCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKMar 2014
ISSCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKMar 2014
0QRSLSE (London Stock Exchange)YesOrdinary SharesGBDKKMar 2014
ISFF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2014
ISSD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDAug 2014

Biography

ISS A/S provides workplace and facility service solutions in Continental Europe, Northern Europe, Asia and Pacific, the Americas, and internationally. It offers facility management services; and daily office, industrial, periodical, and specialized cleaning services. The company also provides security services comprising physical security, surveillance, technical installations, workplace emergency management, and consulting services. In addition, it offers property services, such as infrastructure life, building fabric, and building operational management services; systems monitoring and management of infrastructure; management and maintenance of critical environments; energy and sustainability management services; data hub and helpdesk services; and capital projects. Further, the company provides catering services that comprise operating restaurants, canteens, and takeaways; coffee shops/outlets; hospitality, events, and fine dining; retail shops; and pop ups/high street brands. Additionally, it offers support services, which include front and back of house services, welfare facilities, and labor supply services. It serves various industries, such as business services and information technology; healthcare; public administration; industry and manufacturing; transportation and infrastructure; retail and wholesale; energy and resources; hotels, leisure, and entertainment; food and beverage; and pharmaceutical. ISS A/S was founded in 1901 and is headquartered in Søborg, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 23:50
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
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.