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HomeServe

LSE:HSV
Snowflake Description

Solid track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HSV
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

HomeServe plc, together with its subsidiaries, provides home repair and improvement services to household customers under the HomeServe brand. The last earnings update was 152 days ago. More info.


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HSV Share Price and Events
7 Day Returns
2.4%
LSE:HSV
3.7%
GB Commercial Services
0.6%
GB Market
1 Year Returns
54.1%
LSE:HSV
5.7%
GB Commercial Services
1.1%
GB Market
HSV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HomeServe (HSV) 2.4% 12.8% 20.8% 54.1% 170.4% 217.4%
GB Commercial Services 3.7% 9.1% 11.7% 5.7% 17.6% -7.7%
GB Market 0.6% 1.9% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • HSV outperformed the Commercial Services industry which returned 5.7% over the past year.
  • HSV outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
HSV
Industry
5yr Volatility vs Market

HSV Value

 Is HomeServe undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HomeServe to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HomeServe.

LSE:HSV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:HSV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 19%) (9.21%))
0.859
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.859 * 6.65%)
6.94%

Discounted Cash Flow Calculation for LSE:HSV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HomeServe is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:HSV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.94%)
2019 70.05 Analyst x6 65.51
2020 136.52 Analyst x7 119.38
2021 155.71 Analyst x7 127.32
2022 142.10 Analyst x1 108.65
2023 159.40 Analyst x1 113.97
2024 164.13 Est @ 2.97% 109.74
2025 168.14 Est @ 2.44% 105.12
2026 171.63 Est @ 2.08% 100.34
2027 174.76 Est @ 1.82% 95.54
2028 177.63 Est @ 1.64% 90.81
Present value of next 10 years cash flows £1,036.38
LSE:HSV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £177.63 × (1 + 1.23%) ÷ (6.94% – 1.23%)
£3,147.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £3,147.65 ÷ (1 + 6.94%)10
£1,609.16
LSE:HSV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,036.38 + £1,609.16
£2,645.54
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,645.54 / 332.50
£7.96
LSE:HSV Discount to Share Price
Calculation Result
Value per share (GBP) From above. £7.96
Current discount Discount to share price of £11.35
= -1 x (£11.35 - £7.96) / £7.96
-42.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of HomeServe is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HomeServe's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HomeServe's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HSV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.29
LSE:HSV Share Price ** LSE (2019-04-18) in GBP £11.35
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 28 Publicly-Listed Commercial Services Companies 20.08x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HomeServe.

LSE:HSV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HSV Share Price ÷ EPS (both in GBP)

= 11.35 ÷ 0.29

39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HomeServe is overvalued based on earnings compared to the GB Commercial Services industry average.
  • HomeServe is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does HomeServe's expected growth come at a high price?
Raw Data
LSE:HSV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
10.9%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 18 Publicly-Listed Commercial Services Companies 1.39x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:HSV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 39x ÷ 10.9%

3.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HomeServe is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HomeServe's assets?
Raw Data
LSE:HSV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £1.62
LSE:HSV Share Price * LSE (2019-04-18) in GBP £11.35
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 37 Publicly-Listed Commercial Services Companies 1.67x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:HSV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HSV Share Price ÷ Book Value per Share (both in GBP)

= 11.35 ÷ 1.62

6.98x

* Primary Listing of HomeServe.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HomeServe is overvalued based on assets compared to the GB Commercial Services industry average.
X
Value checks
We assess HomeServe's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. HomeServe has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HSV Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HomeServe expected to grow at an attractive rate?
  • HomeServe's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • HomeServe's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • HomeServe's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:HSV Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HSV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 10.9%
LSE:HSV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 5.9%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 28%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:HSV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HSV Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 1,227 252 1
2022-03-31 1,165 231 135 2
2021-03-31 1,141 222 132 10
2020-03-31 1,071 203 119 10
2019-03-31 998 165 105 10
LSE:HSV Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 938 136 96
2018-06-30 919 133 96
2018-03-31 900 130 96
2017-12-31 868 128 85
2017-09-30 837 126 74
2017-06-30 811 120 74
2017-03-31 785 113 74
2016-12-31 735 111 68
2016-09-30 685 110 62
2016-06-30 659 105 62
2016-03-31 633 101 62
2015-12-31 619 85 58

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HomeServe's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • HomeServe's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HSV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from HomeServe Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HSV Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 0.39 0.42 0.37 6.00
2020-03-31 0.35 0.36 0.34 5.00
2019-03-31 0.31 0.32 0.31 4.00
LSE:HSV Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.29
2018-06-30 0.30
2018-03-31 0.30
2017-12-31 0.27
2017-09-30 0.24
2017-06-30 0.24
2017-03-31 0.24
2016-12-31 0.22
2016-09-30 0.20
2016-06-30 0.20
2016-03-31 0.20
2015-12-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • HomeServe is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess HomeServe's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HomeServe has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HSV Past Performance

  How has HomeServe performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HomeServe's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HomeServe has delivered over 20% year on year earnings growth in the past 5 years.
  • HomeServe's 1-year earnings growth exceeds its 5-year average (29.7% vs 27.6%)
  • HomeServe's earnings growth has exceeded the GB Commercial Services industry average in the past year (29.7% vs 25.1%).
Earnings and Revenue History
HomeServe's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HomeServe Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HSV Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 938.00 95.60 280.91
2018-06-30 918.85 95.95 280.91
2018-03-31 899.70 96.30 280.91
2017-12-31 868.20 85.00 265.59
2017-09-30 836.70 73.70 250.27
2017-06-30 810.85 74.05 250.27
2017-03-31 785.00 74.40 250.27
2016-12-31 735.10 68.40 221.13
2016-09-30 685.20 62.40 191.99
2016-06-30 659.20 62.00 191.99
2016-03-31 633.20 61.60 191.99
2015-12-31 619.00 57.60 178.96
2015-09-30 604.80 53.60 165.93
2015-06-30 594.50 54.85 165.93
2015-03-31 584.20 56.10 165.93
2014-12-31 576.45 42.05 164.86
2014-09-30 568.70 28.00 163.80
2014-06-30 568.50 19.00 163.80
2014-03-31 568.30 10.00 163.80
2013-12-31 563.25 19.30 162.64
2013-09-30 558.20 28.60 161.48
2013-06-30 552.35 35.25 161.48
2013-03-31 546.50 41.90 161.48
2012-12-31 548.85 78.20 151.13
2012-09-30 551.20 114.50 140.78
2012-06-30 542.95 114.40 140.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HomeServe has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HomeServe used its assets more efficiently than the GB Commercial Services industry average last year based on Return on Assets.
  • HomeServe has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HomeServe's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HomeServe has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HSV Health

 How is HomeServe's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HomeServe's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HomeServe is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HomeServe's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HomeServe's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HomeServe Company Filings, last reported 6 months ago.

LSE:HSV Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 539.10 347.40 55.50
2018-06-30 539.10 347.40 55.50
2018-03-31 551.40 295.60 57.80
2017-12-31 551.40 295.60 57.80
2017-09-30 356.40 367.80 63.80
2017-06-30 356.40 367.80 63.80
2017-03-31 370.00 307.60 46.20
2016-12-31 370.00 307.60 46.20
2016-09-30 326.50 329.10 76.20
2016-06-30 326.50 329.10 76.20
2016-03-31 316.60 223.70 54.20
2015-12-31 316.60 223.70 54.20
2015-09-30 263.20 250.60 48.40
2015-06-30 263.20 250.60 48.40
2015-03-31 368.50 138.80 74.70
2014-12-31 368.50 138.80 74.70
2014-09-30 344.00 151.80 76.00
2014-06-30 344.00 151.80 76.00
2014-03-31 352.90 138.50 96.20
2013-12-31 352.90 138.50 96.20
2013-09-30 352.40 135.10 94.40
2013-06-30 352.40 135.10 94.40
2013-03-31 375.20 131.50 88.60
2012-12-31 375.20 131.50 88.60
2012-09-30 351.90 131.00 52.90
2012-06-30 351.90 131.00 52.90
  • HomeServe's level of debt (64.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (38.3% vs 64.4% today).
  • Debt is well covered by operating cash flow (39.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.8x coverage).
X
Financial health checks
We assess HomeServe's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HomeServe has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HSV Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.68%
Current annual income from HomeServe dividends. Estimated to be 2.18% next year.
If you bought £2,000 of HomeServe shares you are expected to receive £34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • HomeServe's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • HomeServe's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:HSV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 2.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:HSV Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 0.30 1.00
2022-03-31 0.27 2.00
2021-03-31 0.25 11.00
2020-03-31 0.23 11.00
2019-03-31 0.21 10.00
LSE:HSV Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-06-11 0.191 1.988
2018-05-22 0.191 2.157
2017-05-23 0.153 1.996
2016-06-13 0.127 2.169
2016-05-24 0.127 2.642
2015-05-19 0.124 2.936
2014-06-16 0.122 3.392
2014-05-20 0.122 3.342
2013-06-10 0.122 4.045
2013-05-21 0.122 4.314
2012-11-20 0.122 4.981
2012-05-22 0.122 5.814
2011-05-24 0.111 3.188
2010-06-01 0.095 1.950
2010-05-25 0.095 2.220
2009-05-19 0.077 2.212
2009-04-22 0.067 2.552

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of HomeServe's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess HomeServe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HomeServe afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HomeServe has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HSV Management

 What is the CEO of HomeServe's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Richard Harpin
COMPENSATION £8,563,000
AGE 53
TENURE AS CEO 15 years
CEO Bio

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 company and he has been the Chief Executive Officer of Homeserve PLC (formerly South Staffordshire Group PLC) since April 2004. Mr. Harpin is the Founder of HomeServe, which was set up in 1993 as a joint venture with South Staffordshire Group. Mr. Harpin is the Founder and Non-Executive Director of Growth Partner LLP and the Enterprise Trust. Mr. Harpin served as the Chief Executive of HomeServe having founded the business in conjunction with South Staffordshire Group in 1993. Previously, he served as Brand Manager of Procter & Gamble, followed by management consultancy with Deloitte and his own company. Mr. Harpin has been a Director of Homeserve PLC since May 2001. He served as a Director of Evander Group Ltd. since May 2001. He has experience in consumer marketing, management consultancy & entrepreneurship.

CEO Compensation
  • Richard's compensation has increased by more than 20% in the past year.
  • Richard's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the HomeServe management team in years:

4
Average Tenure
50
Average Age
  • The tenure for the HomeServe management team is about average.
Management Team

Richard Harpin

TITLE
Founder
COMPENSATION
£9M
AGE
53
TENURE
15 yrs

David Bower

TITLE
Co-COO & Group CFO & Director
COMPENSATION
£1M
AGE
46
TENURE
2.2 yrs

Tom Rusin

TITLE
Co-COO & Global CEO of HomeServe Membership & Executive Director
COMPENSATION
£4M
AGE
49
TENURE
0.3 yrs

Simon Lewis

TITLE
Head of Investor Relations

Miriam McKay

TITLE
Group Communications & IR Director

Anna Maughan

TITLE
Company Secretary
AGE
48
TENURE
10.8 yrs

H. Phillips

TITLE
Chief Executive Officer of Global Partnerships
AGE
51
TENURE
9.1 yrs

Guillaume Huser

TITLE
Chief Executive Officer of Homeserve France
AGE
51
TENURE
4 yrs

John Kitzie

TITLE
CEO of HomeServe North America
TENURE
1 yrs

Linda Hardy

TITLE
Finance Director
Board of Directors Tenure

Average tenure and age of the HomeServe board of directors in years:

1.9
Average Tenure
54
Average Age
  • The average tenure for the HomeServe board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Michael Gibson

TITLE
Non-Executive Chairman
COMPENSATION
£250K
AGE
66
TENURE
9 yrs

Richard Harpin

TITLE
Founder
COMPENSATION
£9M
AGE
53
TENURE
17.9 yrs

David Bower

TITLE
Co-COO & Group CFO & Director
COMPENSATION
£1M
AGE
46
TENURE
2.2 yrs

Tom Rusin

TITLE
Co-COO & Global CEO of HomeServe Membership & Executive Director
COMPENSATION
£4M
AGE
49
TENURE
1.9 yrs

Katrina Cliffe

TITLE
Non-Executive Director
COMPENSATION
£47K
AGE
50
TENURE
1.9 yrs

Ron McMillan

TITLE
Non-Executive Director
COMPENSATION
£25K
AGE
66
TENURE
1.5 yrs

Stella David

TITLE
Senior Independent Director
COMPENSATION
£65K
AGE
56
TENURE
1.2 yrs

Edward Fitzmaurice

TITLE
Non-Executive Director
COMPENSATION
£47K
AGE
55
TENURE
1.9 yrs

Olivier Grémillon

TITLE
Non-Executive Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
25. Jul 18 Sell H. Phillips Individual 25. Jul 18 25. Jul 18 -79,481 £9.95 £-789,553
06. Jul 18 Sell Martin Bennett Individual 06. Jul 18 06. Jul 18 -76,967 £9.16 £-704,784
28. Jun 18 Sell Johnathan Ford Individual 27. Jun 18 27. Jun 18 -102,699 £9.00 £-921,054
26. Jun 18 Sell Johnathan Ford Individual 25. Jun 18 25. Jun 18 -36,497 £9.11 £-332,342
25. May 18 Sell Thomas Rusin Individual 25. May 18 25. May 18 -100,000 £8.87 £-886,800
24. May 18 Sell Johnathan Ford Individual 24. May 18 24. May 18 -47,000 £8.98 £-422,013
23. May 18 Sell Martin Bennett Individual 23. May 18 23. May 18 -425,947 £8.75 £-3,726,397
X
Management checks
We assess HomeServe's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HomeServe has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HSV News

Simply Wall St News

A Closer Look At HomeServe plc's (LON:HSV) Impressive ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every £1 worth of shareholders' equity, it generated £0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is HomeServe plc (LON:HSV) A Smart Choice For Dividend Investors?

Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. … Historically, HomeServe plc (LON:HSV) has paid dividends to shareholders, and these days it yields 1.8%. … Let's take a look at HomeServe in more detail.

Simply Wall St -

Was HomeServe plc's (LON:HSV) Earnings Growth Better Than The Industry's?

When HomeServe plc (LON:HSV) released its most recent earnings update (30 September 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … HSV's trailing twelve-month earnings (from 30 September 2018) of UK£96m has. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 28%, indicating the rate at which HSV is growing has accelerated

Simply Wall St -

Is HomeServe plc (LON:HSV) Spending Too Much Money?

I’ve analysed below, the health and outlook of HomeServe’s cash flow, which will help you understand the stock from a cash standpoint. … HomeServe’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether HomeServe’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

Need To Know: HomeServe plc (LON:HSV) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in HomeServe plc (LON:HSV). … That means that an insider was selling shares at slightly below the current price (UK£9.73). … As a general rule we consider it to be discouraging when insiders are selling below the current price.

Simply Wall St -

If You Had Bought HomeServe Shares Five Years Ago You'd Have Made 179%

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, HomeServe achieved compound earnings per share (EPS) growth of 25% per year. … This EPS growth is reasonably close to the 23% average annual increase in the share price.

Simply Wall St -

Despite Its High P/E Ratio, Is HomeServe plc (LON:HSV) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how HomeServe plc's (LON:HSV) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

What Investors Should Know About HomeServe plc's (LON:HSV) Financial Strength

Mid-caps stocks, like HomeServe plc (LON:HSV) with a market capitalization of UK£3.2b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … This article will examine HSV’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St -

Is HomeServe plc's (LON:HSV) CEO Pay Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … The aim of all this is to consider the appropriateness of CEO pay levels. … How Does Richard Harpin's Compensation Compare With Similar Sized Companies?

Simply Wall St -

HomeServe plc (LON:HSV): Commentary On Fundamentals

HomeServe plc (LON:HSV) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of HSV, it

Simply Wall St -

HSV Company Info

Description

HomeServe plc, together with its subsidiaries, provides home repair and improvement services to household customers under the HomeServe brand. It offers plumbing, drainage, electrics, water supply pipe, gas supply pipe, appliance repair, pest infestation, and locksmith services, as well as heating, ventilation, and air conditioning services. The company serves approximately 8.4 million customers through a network of engineers and sub-contractors in the United Kingdom, the United States, Canada, France, Spain, Italy, Portugal, Brazil, Mexico, Argentina, Chile, and Columbia. HomeServe plc was founded in 1993 and is headquartered in Walsall, the United Kingdom.

Details
Name: HomeServe plc
HSV
Exchange: LSE
Founded: 1993
£3,773,890,697
332,501,383
Website: http://www.homeserveplc.com
Address: HomeServe plc
Cable Drive,
Walsall,
West Midlands, WS2 7BN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HSV Ordinary Shares London Stock Exchange GB GBP 01. Jan 1992
OTCPK HMSV.F Ordinary Shares Pink Sheets LLC US USD 01. Jan 1992
DB XHSB Ordinary Shares Deutsche Boerse AG DE EUR 01. Jan 1992
BATS-CHIXE HSVL Ordinary Shares BATS 'Chi-X Europe' GB GBP 01. Jan 1992
Number of employees
Current staff
Staff numbers
5,846
HomeServe employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 20:39
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/14
Last earnings filing: 2018/11/20
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.