LSE:HSV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Established dividend payer with moderate growth potential.


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: HSV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

HSV

-1.3%

GB Commercial Services

-1.0%

GB Market


1 Year Return

1.0%

HSV

-10.7%

GB Commercial Services

-14.8%

GB Market

Return vs Industry: HSV exceeded the UK Commercial Services industry which returned -10.7% over the past year.

Return vs Market: HSV exceeded the UK Market which returned -14.8% over the past year.


Shareholder returns

HSVIndustryMarket
7 Day-3.6%-1.3%-1.0%
30 Day-5.9%-0.6%-1.6%
90 Day-13.8%-1.2%-3.6%
1 Year3.0%1.0%-7.3%-10.7%-11.6%-14.8%
3 Year46.9%38.3%-9.6%-19.1%-8.9%-20.2%
5 Year219.9%186.9%24.1%0.2%16.2%-10.0%

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

Valuation

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

48.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSV (£11.69) is trading below our estimate of fair value (£22.79)

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


Price To Earnings Ratio

PE vs Industry: HSV is poor value based on its PE Ratio (36.9x) compared to the GB Commercial Services industry average (33.9x).

PE vs Market: HSV is poor value based on its PE Ratio (36.9x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: HSV is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: HSV is overvalued based on its PB Ratio (6.2x) compared to the GB Commercial Services industry average (1.7x).


Next Steps

Future Growth

How is HomeServe forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSV's forecast earnings growth (14.4% per year) is above the savings rate (1.2%).

Earnings vs Market: HSV's earnings (14.4% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: HSV's revenue (6.9% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: HSV's revenue (6.9% 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 (24%)


Next Steps

Past Performance

How has HomeServe performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSV has high quality earnings.

Growing Profit Margin: HSV's current net profit margins (9.4%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: HSV's earnings have grown by 16.2% 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 (-2.3%) over the past year, making it difficult to compare to the Commercial Services industry average (0.2%).


Return on Equity

High ROE: HSV's Return on Equity (16.4%) is considered low.


Next Steps

Financial Health

How is HomeServe's financial position?


Financial Position Analysis

Short Term Liabilities: HSV's short term assets (£634.5M) exceed its short term liabilities (£472.4M).

Long Term Liabilities: HSV's short term assets (£634.5M) do not cover its long term liabilities (£664.3M).


Debt to Equity History and Analysis

Debt Level: HSV's debt to equity ratio (89.9%) is considered high.

Reducing Debt: HSV's debt to equity ratio has increased from 38.2% to 89.9% over the past 5 years.

Debt Coverage: HSV's debt is well covered by operating cash flow (33.1%).

Interest Coverage: HSV's interest payments on its debt are well covered by EBIT (9.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSV's dividend (2.02%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: HSV's dividend (2.02%) is low compared to the top 25% of dividend payers in the UK market (5.32%).


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: With its reasonable payout ratio (74.4%), HSV's dividend 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 (57.2% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Richard Harpin (55 yo)

16.5yrs

Tenure

UK£4,029,000

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 ($USD5.29M) is above average for companies of similar size in the UK market ($USD2.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Harpin
Founder16.5yrsUK£4.03m12.14%
£ 476.8m
David Bower
Co-COO & Group CFO & Director3.67yrsUK£1.57m0.050%
£ 2.0m
Thomas Rusin
Co-COO & Global CEO of HomeServe Membership & Executive Director3.42yrsUK£3.24m0.25%
£ 9.8m
Simon Lewis
Head of Investor Relationsno datano datano data
Miriam McKay
Group Communications & IR Directorno datano datano data
H. Phillips
Chief Executive Officer of Global Partnerships10.58yrsno datano data
Guillaume Huser
Chief Executive Officer of Homeserve France5.5yrsno datano data
John Kitzie
Chief Executive Officer of HomeServe North America2.5yrsno datano data
Debra Dulsky
Global Chief Executive Officer of HVAC1.92yrsno datano data
Fernando Prieto
Chief Executive Officer of HomeServe Spain2.67yrsno datano data
Mike Fairman
Chief Executive Officer of Checkatrade2yrsno datano data
Anna Maughan
Company Secretary12.25yrsno datano data

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: HSV's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Harpin
Founder16.5yrsUK£4.03m12.14%
£ 476.8m
David Bower
Co-COO & Group CFO & Director3.67yrsUK£1.57m0.050%
£ 2.0m
Thomas Rusin
Co-COO & Global CEO of HomeServe Membership & Executive Director3.42yrsUK£3.24m0.25%
£ 9.8m
John Michael Gibson
Independent Non-Executive Chairman10.5yrsUK£263.00k0.045%
£ 1.8m
Edward Fitzmaurice
Independent Non-Executive Director3.42yrsUK£55.00k0.23%
£ 9.2m
Stella David
Non-Executive Director9.92yrsUK£70.00k0.030%
£ 1.2m
Ronald McMillan
Independent Non-Executive Director3yrsUK£65.00k0.0045%
£ 178.3k
Katrina Cliffe
Senior Independent Non-Executive Director0.92yrUK£68.00k0.0054%
£ 213.7k
Olivier Grémillon
Independent Non-Executive Director1.58yrsUK£55.00k0.0036%
£ 140.2k

3.4yrs

Average Tenure

55yo

Average Age

Experienced Board: HSV's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HSV insiders have sold more shares than they have bought 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: HSV
  • Exchange: LSE
  • Founded: 1991
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: UK£3.928b
  • Shares outstanding: 336.00m
  • 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 via subscription-based membership se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:07
End of Day Share Price2020/10/21 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.