HomeServe plc, together with its subsidiaries, provides home repair and improvement services to homeowners under the HomeServe brand. More Details
Established dividend payer with reasonable growth potential.
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: HSV is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: HSV's weekly volatility (3%) has been stable over the past year.
7 Day Return
GB Commercial Services
1 Year Return
GB Commercial Services
Return vs Industry: HSV underperformed the UK Commercial Services industry which returned 32.8% over the past year.
Return vs Market: HSV underperformed the UK Market which returned 23.3% over the past year.
Long-Term 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
2 weeks ago | Simply Wall StA Look At The Intrinsic Value Of HomeServe plc (LON:HSV)
1 month ago | Simply Wall StThese 4 Measures Indicate That HomeServe (LON:HSV) Is Using Debt Reasonably Well
1 month ago | Simply Wall StHow Much Does HomeServe's (LON:HSV) CEO Make?
Is HomeServe undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HSV (£11.85) is trading below our estimate of fair value (£14.66)
Significantly Below Fair Value: HSV is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HSV's PE Ratio (41.4x) is in line with the GB Commercial Services industry average.
PE vs Market: HSV is poor value based on its PE Ratio (41.4x) compared to the UK market (26.2x).
Price to Earnings Growth Ratio
PEG Ratio: HSV is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: HSV is overvalued based on its PB Ratio (6.8x) compared to the GB Commercial Services industry average (2.4x).
How is HomeServe forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HSV's forecast earnings growth (19% per year) is above the savings rate (1%).
Earnings vs Market: HSV's earnings (19% per year) are forecast to grow faster than the UK market (18% per year).
High Growth Earnings: HSV's earnings are forecast to grow, but not significantly.
Revenue vs Market: HSV's revenue (8.3% per year) is forecast to grow faster than the UK market (5.8% per year).
High Growth Revenue: HSV's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HSV's Return on Equity is forecast to be high in 3 years time (23.9%)
How has HomeServe performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HSV has high quality earnings.
Growing Profit Margin: HSV's current net profit margins (7.9%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: HSV's earnings have grown by 13.7% per year over the past 5 years.
Accelerating Growth: HSV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HSV had negative earnings growth (-12.7%) over the past year, making it difficult to compare to the Commercial Services industry average (-4.5%).
Return on Equity
High ROE: HSV's Return on Equity (16.2%) is considered low.
How is HomeServe's financial position?
Financial Position Analysis
Short Term Liabilities: HSV's short term assets (£548.1M) exceed its short term liabilities (£442.5M).
Long Term Liabilities: HSV's short term assets (£548.1M) do not cover its long term liabilities (£703.3M).
Debt to Equity History and Analysis
Debt Level: HSV's debt to equity ratio (106.2%) is considered high.
Reducing Debt: HSV's debt to equity ratio has increased from 94.2% to 106.2% over the past 5 years.
Debt Coverage: HSV's debt is well covered by operating cash flow (36%).
Interest Coverage: HSV's interest payments on its debt are well covered by EBIT (8.3x coverage).
What is HomeServe current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HSV's dividend (1.99%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).
High Dividend: HSV's dividend (1.99%) is low compared to the top 25% of dividend payers in the UK market (4.13%).
Stability and Growth of Payments
Stable Dividend: HSV's dividends per share have been stable in the past 10 years.
Growing Dividend: HSV's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.8%), HSV's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HSV's dividends in 3 years are forecast to be covered by earnings (56.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Richard Harpin (55 yo)
Mr. Richard David Harpin, BA (Hons) CDip AF is a Co-Chief Operating Officer of HomeServe, PLC since December 31, 2018. He is Founder of HomeServe, PLC and has been its Group Chief Executive Officer since A...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD5.57M) is above average for companies of similar size in the UK market ($USD2.29M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Experienced Management: HSV's management team is considered experienced (3.1 years average tenure).
Experienced Board: HSV's board of directors are considered experienced (3.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HSV insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
HomeServe plc's company bio, employee growth, exchange listings and data sources
- Name: HomeServe plc
- Ticker: HSV
- Exchange: LSE
- Founded: 1991
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: UK£3.970b
- Shares outstanding: 336.05m
- Website: https://www.homeserveplc.com
Number of Employees
- HomeServe plc
- Cable Drive
- West Midlands
- WS2 7BN
- United Kingdom
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Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 18:22|
|End of Day Share Price||2021/04/16 00:00|
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.