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ServiceMaster Global Holdings

Executive Summary

ServiceMaster Global Holdings, Inc. provides residential and commercial termite and pest control, restoration, and cleaning services.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has ServiceMaster Global Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0L5M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0L5M

5.4%

GB Consumer Services

3.2%

GB Market


1 Year Return

n/a

0L5M

-8.5%

GB Consumer Services

-11.7%

GB Market

Return vs Industry: Insufficient data to determine how 0L5M performed against the UK Consumer Services industry.

Return vs Market: Insufficient data to determine how 0L5M performed against the UK Market.


Shareholder returns

0L5MIndustryMarket
7 Day0%5.4%3.2%
30 Day0%1.0%5.9%
90 Dayn/a-13.2%-6.3%
1 Yearn/a-7.8%-8.5%-7.4%-11.7%
3 Yearn/a-9.0%-13.7%-4.8%-16.5%
5 Yearn/a-39.6%-56.2%13.4%-12.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ServiceMaster Global Holdings undervalued compared to its fair value and its price relative to the market?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0L5M ($36.46) is trading below our estimate of fair value ($53.64)

Significantly Below Fair Value: 0L5M is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0L5M is poor value based on its PE Ratio (34.9x) compared to the Consumer Services industry average (15x).

PE vs Market: 0L5M is poor value based on its PE Ratio (34.9x) compared to the UK market (13.9x).


Price to Earnings Growth Ratio

PEG Ratio: 0L5M's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0L5M is good value based on its PB Ratio (1.9x) compared to the GB Consumer Services industry average (2.8x).


Next Steps

Future Growth

How is ServiceMaster Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0L5M's earnings are forecast to decline over the next 3 years (-7.2% per year).

Earnings vs Market: 0L5M's earnings are forecast to decline over the next 3 years (-7.2% per year).

High Growth Earnings: 0L5M's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0L5M's revenue (1.9% per year) is forecast to grow slower than the UK market (3.2% per year).

High Growth Revenue: 0L5M's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0L5M's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has ServiceMaster Global Holdings performed over the past 5 years?

-13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0L5M has high quality earnings.

Growing Profit Margin: 0L5M became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 0L5M's earnings have declined by -13.3% per year over the past 5 years.

Accelerating Growth: 0L5M has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 0L5M has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (42.5%).


Return on Equity

High ROE: 0L5M's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is ServiceMaster Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 0L5M's short term assets ($629.0M) exceed its short term liabilities ($557.0M).

Long Term Liabilities: 0L5M's short term assets ($629.0M) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: 0L5M's debt to equity ratio (70.8%) is considered high.

Reducing Debt: 0L5M's debt to equity ratio has reduced from 842.5% to 70.8% over the past 5 years.

Debt Coverage: 0L5M's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: 0L5M's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is ServiceMaster Global Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 0L5M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 0L5M's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 0L5M's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 0L5M's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0L5M's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Naren Gursahaney (57yo)

0.33

Tenure

US$330,000

Compensation

Mr. Naren K. Gursahaney serves as Interim Chief Executive Officer of ServiceMaster Global Holdings, Inc. since January 21, 2020. He has been Director of ServiceMaster Global Holdings Inc. since December 1, ...


Leadership Team

NamePositionTenureCompensationOwnership
Naren Gursahaney
Interim CEO & Chairman of the Board0.33yrUS$330.00k0.0094% $412.7k
Anthony DiLucente
Senior VP & CFO3.25yrsUS$1.66m0.017% $736.2k
Michael Bisignano
Senior VP1.58yrsUS$1.56m0.0013% $56.4k
Dion Persson
Senior Vice President of Business Development2.67yrsUS$1.20m0.010% $442.4k
Gregory Rutherford
President of Terminix Commercial1yrUS$1.35m0.0031% $136.0k
John Mullen
VP, Controller & Chief Accounting Officer6.5yrsno data0.0059% $257.5k
Robert Doty
Senior VP & Chief Information Officer1.83yrsno datano data
Jesse Jenkins
Senior Director of Treasury & Investor Relationsno datano datano data
Peter Tosches
Senior Vice President of Corporate Communicationsno datano datano data
David Dart
Chief Human Resources Officer1.75yrsno data0.00029% $12.7k

1.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 0L5M's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Naren Gursahaney
Interim CEO & Chairman of the Board0.33yrUS$330.00k0.0094% $412.7k
John Corness
Independent Director3.83yrsUS$220.00k0.0037% $159.6k
Mark Tomkins
Lead Independent Director0.33yrUS$245.00k0.015% $642.7k
Steven Hochhauser
Independent Director1.92yrsUS$200.00k0.0019% $83.1k
Stephen Sedita
Independent Director6.42yrsUS$210.00k0.013% $590.2k
Deborah Caplan
Independent Director0.83yrUS$125.97k0.0028% $124.2k
Laurie Goldman
Independent Director4.42yrsUS$200.00k0.0074% $323.1k

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 0L5M's board of directors are not considered experienced ( 2.9 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: 0L5M 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

ServiceMaster Global Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ServiceMaster Global Holdings, Inc.
  • Ticker: 0L5M
  • Exchange: LSE
  • Founded: 1929
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$4.372b
  • Shares outstanding: 131.92m
  • Website: https://www.servicemaster.com

Number of Employees


Location

  • ServiceMaster Global Holdings, Inc.
  • 150 Peabody Place
  • Memphis
  • Tennessee
  • 38103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SERVNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2014
SVWDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014
0L5MLSE (London Stock Exchange)YesCommon StockGBUSDJun 2014

Biography

ServiceMaster Global Holdings, Inc. provides residential and commercial termite and pest control, restoration, and cleaning services. The company operates through two segments, Terminix and ServiceMaster Brands. The Terminix segment offers termite and pest control services, including termite remediation, annual termite inspection, and prevention treatments with termite damage repair guarantees, periodic pest control services, insulation services, crawlspace encapsulation, and wildlife exclusion. The ServiceMaster Brands segment provides restoration, commercial and residential cleaning, cabinet and furniture repair, and home inspection services. The company serves under the AmeriSpec, Copesan, Furniture Medic, McCloud Services, Merry Maids, Nomor, ServiceMaster Clean, ServiceMaster Restore, Terminix, and Terminix Commercial brands. It markets its services to homeowners and businesses through the Internet, direct mail, television and radio advertising, print advertisements, marketing partnerships, door-to-door summer sales programs, telemarketing, and various social media channels and through national sales teams. ServiceMaster Global Holdings, Inc. was founded in 1929 and is headquartered in Memphis, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/05 23:56
End of Day Share Price2020/02/06 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.