NYSE:SERV

Stock Analysis Report

ServiceMaster Global Holdings

Executive Summary

ServiceMaster Global Holdings, Inc. provides services to residential and commercial customers in the termite, pest control, cleaning, and restoration markets in all 50 states and the District of Columbia.

Rewards

Trading at 26.9% below its fair value

Earnings are forecast to grow 25.99% per year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Moderate growth potential and overvalued.


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: SERV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

SERV

-1.6%

US Consumer Services

-1.4%

US Market


1 Year Return

-2.4%

SERV

20.6%

US Consumer Services

14.5%

US Market

Return vs Industry: SERV underperformed the US Consumer Services industry which returned 20.6% over the past year.

Return vs Market: SERV underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

SERVIndustryMarket
7 Day1.1%-1.6%-1.4%
30 Day12.6%1.5%1.3%
90 Day-28.8%1.2%4.6%
1 Year-2.4%-2.4%21.2%20.6%17.1%14.5%
3 Year55.0%3.2%100.3%89.4%45.1%35.7%
5 Year125.6%50.1%137.6%110.9%67.1%48.6%

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

Valuation

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

26.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SERV ($40.23) is trading below our estimate of fair value ($55.06)

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


Price To Earnings Ratio

PE vs Industry: SERV is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: SERV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SERV's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SERV is overvalued based on its PB Ratio (2.3x) compared to the US Consumer Services industry average (2.1x).


Next Steps

Future Growth

How is ServiceMaster Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SERV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SERV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SERV's is expected to become profitable in the next 3 years.

Revenue vs Market: SERV's revenue (6.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SERV's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SERV's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

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

-10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SERV is currently unprofitable.

Growing Profit Margin: SERV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SERV is unprofitable, and losses have increased over the past 5 years at a rate of -10.9% per year.

Accelerating Growth: Unable to compare SERV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SERV is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (7.1%).


Return on Equity

High ROE: SERV has a negative Return on Equity (-3.51%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ServiceMaster Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SERV's short term assets ($470.0M) do not cover its short term liabilities ($504.0M).

Long Term Liabilities: SERV's short term assets ($470.0M) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: SERV's debt to equity ratio (58%) is considered high.

Reducing Debt: SERV's debt to equity ratio has reduced from 934.4% to 58% over the past 5 years.

Debt Coverage: SERV's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: SERV is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SERV has a low level of unsold assets or inventory.

Debt Coverage by Assets: SERV's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SERV'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 SERV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SERV'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 SERV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Nik Varty (55yo)

2.4yrs

Tenure

US$5,526,809

Compensation

Mr. Nikhil Madhukar Varty, also known as Nik, has been Chief Executive Officer and Director at ServiceMaster Global Holdings, Inc. since July 26, 2017. Mr. Varty served as Vice President of Mergers & Acqui ...


CEO Compensation Analysis

Compensation vs Market: Nik's total compensation ($USD5.53M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Nik's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.1yrs

Average Tenure

54yo

Average Age

Experienced Management: SERV's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.4yrs

Average Tenure

57yo

Average Age

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


Insider Trading

Insider Buying: SERV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$70,01412 Nov 19
Steven Hochhauser
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$35.01
SellUS$131,83713 Jun 19
Mark Tomkins
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,444
Max PriceUS$53.94
SellUS$13,17722 May 19
Matthew Stevenson
EntityIndividual
Shares243
Max PriceUS$54.23
SellUS$616,36915 May 19
Mary Wegner
EntityIndividual
Shares11,627
Max PriceUS$53.01

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dion Persson (58yo)

    Senior Vice President of Business Development

    • Tenure: 2.3yrs
    • Compensation: US$2.06m
  • Nik Varty (55yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: US$5.53m
  • Tony DiLucente (60yo)

    Senior VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$1.84m
  • Pete Tosches (53yo)

    Senior Vice President of Corporate Communications

    • Tenure: 0yrs
  • Michael Bisignano (48yo)

    Senior VP

    • Tenure: 1.2yrs
  • John Mullen (50yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 6.1yrs
  • David Dart (49yo)

    Chief Human Resources Officer

    • Tenure: 1.3yrs
  • Pratip Dastidar (56yo)

    Senior VP & Chief Transformation Officer

    • Tenure: 2yrs
  • Robert Doty

    Senior VP & Chief Information Officer

    • Tenure: 1.4yrs
  • Jesse Jenkins

    Senior Director of Treasury & Investor Relations

    • Tenure: 0yrs

Board Members

  • John Corness (64yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$245.00k
  • Mark Tomkins (64yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: US$363.34k
  • Steve Hochhauser (57yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$405.07k
  • Naren Gursahaney (57yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$203.61k
  • Nik Varty (55yo)

    CEO & Director

    • Tenure: 2.4yrs
    • Compensation: US$5.53m
  • Steve Sedita (67yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$210.00k
  • Deb Caplan (56yo)

    Director

    • Tenure: 0.4yrs
  • Laurie Goldman (57yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$200.00k

Company Information

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


Key Information

  • Name: ServiceMaster Global Holdings, Inc.
  • Ticker: SERV
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$5.289b
  • Shares outstanding: 135.62m
  • 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 services to residential and commercial customers in the termite, pest control, cleaning, and restoration markets in all 50 states and the District of Columbia.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:40
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.