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HSV

HomeServeLSE:HSV Stock Report

Market Cap

UK£3.0b

7D

-2.9%

1Y

-14.5%

Updated

28 Nov, 2021

Data

Company Financials +
HSV fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends4/6

HSV Stock Overview

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

HomeServe Competitors

FirstService

TSX:FSV

CA$11.0b

Chemed

NYSE:CHE

US$7.4b

Frontdoor

NasdaqGS:FTDR

US$3.0b

Price History & Performance

Summary of all time highs, changes and price drops for HomeServe
Historical stock prices
Current Share PriceUK£9.00
52 Week HighUK£12.18
52 Week LowUK£7.87
Beta0.37
1 Month Change5.26%
3 Month Change-3.07%
1 Year Change-14.53%
3 Year Change-5.31%
5 Year Change49.50%
Change since IPO5,291.77%

Recent News & Updates

Nov 18
HomeServe (LON:HSV) Is Paying Out A Larger Dividend Than Last Year

HomeServe (LON:HSV) Is Paying Out A Larger Dividend Than Last Year

The board of HomeServe plc ( LON:HSV ) has announced that it will be increasing its dividend by 9.7% on the 7th of...

Nov 05
Is There An Opportunity With HomeServe plc's (LON:HSV) 20% Undervaluation?

Is There An Opportunity With HomeServe plc's (LON:HSV) 20% Undervaluation?

Does the November share price for HomeServe plc ( LON:HSV ) reflect what it's really worth? Today, we will estimate the...

Sep 14
These 4 Measures Indicate That HomeServe (LON:HSV) Is Using Debt Reasonably Well

These 4 Measures Indicate That HomeServe (LON:HSV) Is Using Debt Reasonably Well

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 24
Here's What To Make Of HomeServe's (LON:HSV) Decelerating Rates Of Return

Here's What To Make Of HomeServe's (LON:HSV) Decelerating Rates Of Return

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

HSVGB Commercial ServicesGB Market
7D-2.9%-2.7%-3.0%
1Y-14.5%21.2%11.7%

Return vs Industry: HSV underperformed the UK Commercial Services industry which returned 21.2% over the past year.

Return vs Market: HSV underperformed the UK Market which returned 11.7% over the past year.

Price Volatility

Is HSV's price volatile compared to industry and market?
HSV volatility
HSV Average Weekly Movement4.0%
Commercial Services Industry Average Movement4.6%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: HSV is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HSV's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19917,400Richard Harpinhttps://www.homeserveplc.com

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 services for plumbing, heating, electrical, locks, glazing, pest control, and technology. It also operates an online marketplace to help homeowners to find local trade on-demand, as well as to help with a range of home repairs and improvements, including landscape gardening and carpet cleaning.

HomeServe Fundamentals Summary

How do HomeServe's earnings and revenue compare to its market cap?
HSV fundamental statistics
Market CapUK£3.03b
Earnings (TTM)UK£37.50m
Revenue (TTM)UK£1.38b

80.7x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSV income statement (TTM)
RevenueUK£1.38b
Cost of RevenueUK£686.60m
Gross ProfitUK£691.91m
ExpensesUK£654.41m
EarningsUK£37.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin50.19%
Net Profit Margin2.72%
Debt/Equity Ratio137.4%

How did HSV perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

238%

Payout Ratio

Does HSV pay a reliable dividends?

See HSV dividend history and benchmarks
When do you need to buy HSV by to receive an upcoming dividend?
HomeServe dividend dates
Ex Dividend DateDec 09 2021
Dividend Pay DateJan 07 2022
Days until Ex dividend10 days
Days until Dividend pay date39 days

Does HSV pay a reliable dividends?

See HSV dividend history and benchmarks

Valuation

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

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSV (£9) is trading below our estimate of fair value (£11.09)

Significantly Below Fair Value: HSV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HSV is poor value based on its PE Ratio (80.7x) compared to the UK Commercial Services industry average (44.1x).

PE vs Market: HSV is poor value based on its PE Ratio (80.7x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: HSV is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: HSV is overvalued based on its PB Ratio (5.7x) compared to the GB Commercial Services industry average (2.4x).


Future Growth

How is HomeServe forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSV's forecast earnings growth (12.6% per year) is above the savings rate (0.9%).

Earnings vs Market: HSV's earnings (12.6% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: HSV's revenue (5.8% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: HSV's revenue (5.8% 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 (27.7%)


Past Performance

How has HomeServe performed over the past 5 years?

-4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSV has a large one-off loss of £97.0M impacting its September 30 2021 financial results.

Growing Profit Margin: HSV's current net profit margins (2.7%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: HSV's earnings have declined by 4.1% 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 (-60.9%) over the past year, making it difficult to compare to the Commercial Services industry average (29.3%).


Return on Equity

High ROE: HSV's Return on Equity (7.2%) is considered low.


Financial Health

How is HomeServe's financial position?


Financial Position Analysis

Short Term Liabilities: HSV's short term assets (£625.8M) exceed its short term liabilities (£468.5M).

Long Term Liabilities: HSV's short term assets (£625.8M) do not cover its long term liabilities (£744.7M).


Debt to Equity History and Analysis

Debt Level: HSV's net debt to equity ratio (108.3%) is considered high.

Reducing Debt: HSV's debt to equity ratio has increased from 100% to 137.4% over the past 5 years.

Debt Coverage: HSV's debt is well covered by operating cash flow (29%).

Interest Coverage: HSV's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet


Dividend

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

2.96%

Current Dividend Yield


Upcoming Dividend Payment

TodayNov 29 2021Ex Dividend DateDec 09 2021Dividend Pay DateJan 07 202229 days from Ex DividendBuy in the next 10 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HSV's dividend (2.96%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: HSV's dividend (2.96%) is low compared to the top 25% of dividend payers in the UK market (4.15%).


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 high payout ratio (238.4%), HSV's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSV's dividends in 3 years are forecast to be covered by earnings (59.9% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Richard Harpin (56 yo)

17.58yrs

Tenure

UK£1,610,000

Compensation

Mr. Richard David Harpin, BA (Hons) CDip AF is the Founder of HomeServe, PLC and has been its Group Chief Executive Officer since April 2004. He was a Co-Chief Operating Officer of HomeServe, PLC since Dec...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD2.14M) is about average for companies of similar size in the UK market ($USD1.75M).

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


Leadership Team

Experienced Management: HSV's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: HSV's board of directors are considered experienced (4.1 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

HomeServe plc's 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£3.028b
  • Shares outstanding: 336.42m
  • Website: https://www.homeserveplc.com

Number of Employees


Location

  • HomeServe plc
  • Cable Drive
  • Walsall
  • West Midlands
  • WS2 7BN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 18:52
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.