Loading...

We've got a brand new version of Simply Wall St! Try it out

HomeServe

LSE:HSV
Snowflake Description

Reasonable growth potential average dividend payer.

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 homeowners under the HomeServe brand. The last earnings update was 16 days ago. More info.


Add to Portfolio Compare Print
HSV Share Price and Events
7 Day Returns
-1.8%
LSE:HSV
-2.8%
GB Commercial Services
-2.5%
GB Market
1 Year Returns
34.1%
LSE:HSV
19.8%
GB Commercial Services
5.3%
GB Market
HSV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HomeServe (HSV) -1.8% 5.6% 4.9% 34.1% 99.2% 243.4%
GB Commercial Services -2.8% 0.1% 4.1% 19.8% 15.5% 12.6%
GB Market -2.5% -1.3% 0.9% 5.3% 4.1% 5.1%
1 Year Return vs Industry and Market
  • HSV outperformed the Commercial Services industry which returned 19.8% over the past year.
  • HSV outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 5.3% over the past year.
Price Volatility
HSV
Industry
5yr Volatility vs Market
Related Companies

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 5.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 0.5%
Equity Risk Premium S&P Global 6.1%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.66 (1 + (1- 19%) (12.89%))
0.818
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.818 * 6.07%)
5.5%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:HSV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 5.5%)
2020 102.24 Analyst x7 96.91
2021 138.74 Analyst x7 124.66
2022 165.58 Analyst x7 141.02
2023 179.30 Analyst x2 144.74
2024 211.50 Analyst x1 161.84
2025 231.60 Est @ 9.5% 167.99
2026 247.37 Est @ 6.81% 170.08
2027 259.56 Est @ 4.93% 169.16
2028 268.93 Est @ 3.61% 166.12
2029 276.14 Est @ 2.68% 161.69
Present value of next 10 years cash flows £1,504.00
LSE:HSV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £276.14 × (1 + 0.53%) ÷ (5.5% – 0.53%)
£5,587.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,587.94 ÷ (1 + 5.5%)10
£3,271.97
LSE:HSV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,504.00 + £3,271.97
£4,775.97
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,775.97 / 334.63
£14.27
LSE:HSV Discount to Share Price
Calculation Result
Value per share (GBP) From above. £14.27
Current discount Discount to share price of £12.12
= -1 x (£12.12 - £14.27) / £14.27
15.1%

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

Current Discount
Amount off the current price HomeServe is available for.
Intrinsic value
15%
Share price is £12.12 vs Future cash flow value of £14.27
Current Discount Checks
For HomeServe to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HomeServe's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • HomeServe's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 (2019-09-30) in GBP £0.33
LSE:HSV Share Price ** LSE (2019-12-05) in GBP £12.12
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PE Ratio Median Figure of 25 Publicly-Listed Commercial Services Companies 18.75x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

* 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)

= 12.12 ÷ 0.33

36.7x

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 36.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
12.5%per year
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PEG Ratio Median Figure of 20 Publicly-Listed Commercial Services Companies 1.27x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 562 Publicly-Listed Companies 1.44x

*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

= 36.7x ÷ 12.5%

2.94x

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 (2019-09-30) in GBP £1.78
LSE:HSV Share Price * LSE (2019-12-05) in GBP £12.12
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry PB Ratio Median Figure of 32 Publicly-Listed Commercial Services Companies 2.24x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.53x
LSE:HSV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 12.12 ÷ 1.78

6.8x

* 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
12.5%
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 0.5%.
Growth vs Market Checks
  • HomeServe's earnings growth is expected to exceed 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 12.5%
LSE:HSV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 8.5%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 15.1%
United Kingdom of Great Britain and Northern Ireland Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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 (2 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
2024-03-31
2023-03-31 1,425 314 166 2
2022-03-31 1,328 239 151 10
2021-03-31 1,231 216 130 10
2020-03-31 1,118 188 116 10
2019-12-05
LSE:HSV Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-09-30 1,057 155 110
2019-06-30 1,030 159 109
2019-03-31 1,004 162 109
2018-12-31 971 149 102
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HomeServe's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • HomeServe's revenue is expected to grow by 8.5% 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 (2 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 2 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
2024-03-31
2023-03-31 0.55 0.55 0.55 1.00
2022-03-31 0.44 0.49 0.41 6.00
2021-03-31 0.39 0.40 0.37 6.00
2020-03-31 0.35 0.39 0.33 6.00
2019-12-05
LSE:HSV Past Financials Data
Date (Data in GBP Millions) EPS *
2019-09-30 0.33
2019-06-30 0.33
2019-03-31 0.33
2018-12-31 0.31
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

*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 4/6, 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's year on year earnings growth rate has been positive over the past 5 years.
  • HomeServe's 1-year earnings growth is less than its 5-year average (15.1% vs 19.8%)
  • HomeServe's earnings growth has not exceeded the GB Commercial Services industry average in the past year (15.1% vs 16.1%).
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 2 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
2019-09-30 1,057.00 110.00 321.90
2019-06-30 1,030.30 109.25 321.90
2019-03-31 1,003.60 108.50 321.90
2018-12-31 970.80 102.05 301.41
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

*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's use of capital has not improved over the past 3 years (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 2/6, 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 long term commitments exceed its cash and other short term assets.
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 1x 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 2 months ago.

LSE:HSV Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 596.80 459.90 67.00
2019-06-30 596.80 459.90 67.00
2019-03-31 613.60 376.10 72.60
2018-12-31 613.60 376.10 72.60
2018-09-30 539.10 346.60 55.50
2018-06-30 539.10 346.60 55.50
2018-03-31 551.40 294.70 57.80
2017-12-31 551.40 294.70 57.80
2017-09-30 356.40 366.60 63.80
2017-06-30 356.40 366.60 63.80
2017-03-31 370.00 306.00 46.20
2016-12-31 370.00 306.00 46.20
2016-09-30 326.50 327.10 76.20
2016-06-30 326.50 327.10 76.20
2016-03-31 316.60 221.50 54.20
2015-12-31 316.60 221.50 54.20
2015-09-30 263.20 249.60 48.40
2015-06-30 263.20 249.60 48.40
2015-03-31 368.50 137.60 74.70
2014-12-31 368.50 137.60 74.70
2014-09-30 344.00 150.60 76.00
2014-06-30 344.00 150.60 76.00
2014-03-31 352.90 137.10 96.20
2013-12-31 352.90 137.10 96.20
2013-09-30 352.40 133.60 94.40
2013-06-30 352.40 133.60 94.40
2013-03-31 375.20 129.60 88.60
2012-12-31 375.20 129.60 88.60
  • HomeServe's level of debt (77.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (43.7% vs 77.1% today).
  • Debt is well covered by operating cash flow (33.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.1x 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 3/6, 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
1.77%
Current annual income from HomeServe dividends. Estimated to be 2.21% next year.
If you bought £2,000 of HomeServe shares you are expected to receive £35 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 (1.97%).
  • HomeServe's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.29%).
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 21 Stocks 2.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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 5.3%

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
2024-03-31
2023-03-31 0.32 2.00
2022-03-31 0.29 10.00
2021-03-31 0.26 11.00
2020-03-31 0.24 11.00
2019-12-05
LSE:HSV Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-11 0.214 1.842
2019-05-21 0.214 1.756
2018-06-11 0.191 1.967
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

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 (1.8x coverage).
X
Income/ dividend checks
We assess HomeServe's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - 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 £4,749,000
AGE 54
TENURE AS CEO 15.7 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 of the company and has been the Chief Executive Officer of Homeserve PLC (formerly South Staffordshire Group PLC) since April 2004. Mr. Harpin is the Founder and Non-Executive Director of Growth Partner and the Enterprise Trust. 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 been consistent with company performance over the past year, both up more than 20%.
  • 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:

4.7
Average Tenure
52
Average Age
  • The tenure for the HomeServe management team is about average.
Management Team

Richard Harpin

TITLE
Founder
COMPENSATION
£5M
AGE
54
TENURE
15.7 yrs

David Bower

TITLE
Co-COO & Group CFO & Director
COMPENSATION
£974K
AGE
47
TENURE
2.8 yrs

Tom Rusin

TITLE
Co-COO & Global CEO of HomeServe Membership & Executive Director
COMPENSATION
£4M
AGE
50
TENURE
1 yrs

Miriam McKay

TITLE
Group Communications & IR Director

Simon Lewis

TITLE
Head of Investor Relations

Anna Maughan

TITLE
Company Secretary
AGE
49
TENURE
11.4 yrs

H. Phillips

TITLE
Chief Executive Officer of Global Partnerships
AGE
52
TENURE
9.8 yrs

Guillaume Huser

TITLE
Chief Executive Officer of Homeserve France
AGE
52
TENURE
4.7 yrs

John Kitzie

TITLE
CEO of HomeServe North America
AGE
65
TENURE
1.7 yrs

Linda Hardy

TITLE
Finance Director
Board of Directors Tenure

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

2.6
Average Tenure
53.5
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
67
TENURE
9.7 yrs

Richard Harpin

TITLE
Founder
COMPENSATION
£5M
AGE
54
TENURE
18.6 yrs

David Bower

TITLE
Co-COO & Group CFO & Director
COMPENSATION
£974K
AGE
47
TENURE
2.8 yrs

Tom Rusin

TITLE
Co-COO & Global CEO of HomeServe Membership & Executive Director
COMPENSATION
£4M
AGE
50
TENURE
2.6 yrs

Machin Cliffe

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£62K
AGE
53
TENURE
0.1 yrs

Ron McMillan

TITLE
Non-Executive Director
COMPENSATION
£65K
AGE
67
TENURE
2.2 yrs

Edward Fitzmaurice

TITLE
Non-Executive Director
COMPENSATION
£55K
AGE
56
TENURE
2.6 yrs

Olivier Grémillon

TITLE
Non-Executive Director
AGE
39
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • HomeServe individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
24. Sep 19 Sell Thomas Rusin Individual 23. Sep 19 23. Sep 19 -53 £11.74 £-620
25. Jul 19 Buy Stella David Individual 24. Jul 19 24. Jul 19 28,395 £11.45 £324,989
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

Should You Be Adding HomeServe (LON:HSV) To Your Watchlist Today?

Along with the insider buying, another encouraging sign for HomeServe is that insiders, as a group, have a considerable shareholding. … For growth investors like me, HomeServe's raw rate of earnings growth is a beacon in the night. … The good news is that HomeServe is not the only growth stock with insider buying.

Simply Wall St -

Would HomeServe plc (LON:HSV) Be Valuable To Income Investors?

Dividend paying stocks like HomeServe plc (LON:HSV) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. A slim 1.9% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, HomeServe could have potential. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … With a cash payout ratio of 141%, HomeServe's dividend payments are poorly covered by cash flow. … While HomeServe's dividends were covered by the company's reported profits, free cash flow is somewhat more important, so it's not great to see that the company didn't generate enough cash to pay its dividend.

Simply Wall St -

HomeServe plc (LON:HSV): Will The Growth Last?

Check out our latest analysis for HomeServe How is HomeServe going to perform in the near future? … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … LSE:HSV Past and Future Earnings, August 19th 2019 By 2022, HSV's earnings should reach UK£147m, from current levels of UK£109m, resulting in an annual growth rate of 8.9%.

Simply Wall St -

Estimating The Fair Value Of HomeServe plc (LON:HSV)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (£, Millions) £115.8m £141.4m £168.3m £189.4m £206.8m £220.8m £232.0m £241.2m £248.7m £255.1m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x5 Est @ 12.54% Est @ 9.15% Est @ 6.77% Est @ 5.11% Est @ 3.94% Est @ 3.13% Est @ 2.56% Present Value (£, Millions) Discounted @ 6.61% £108.6 £124.4 £138.9 £146.7 £150.2 £150.4 £148.3 £144.6 £139.9 £134.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= £1.4b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … LSE:HSV Intrinsic value, August 12th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is HomeServe plc's (LON:HSV) ROE Of 18% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for HomeServe: 18% = UK£109m ÷ UK£614m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Interested In HomeServe plc (LON:HSV)? Here's What Its Recent Performance Looks Like

Assessing HomeServe plc's (LON:HSV) performance as a company requires looking at more than just a years' earnings data. … Check out our latest analysis for HomeServe How HSV fared against its long-term earnings performance and its industry HSV's trailing twelve-month earnings (from 31 March 2019) of UK£109m has jumped 13% compared to the previous year. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 25%, indicating the rate at which HSV is growing has slowed down.

Simply Wall St -

Why You Should Like HomeServe plc’s (LON:HSV) ROCE

Last but not least, we'll look at what impact its current liabilities have on its ROCE. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for HomeServe: 0.15 = UK£150m ÷ (UK£1.4b - UK£434m) (Based on the trailing twelve months to March 2019.) Therefore, HomeServe has an ROCE of 15%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is HomeServe (LON:HSV) Using Too Much Debt?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … LSE:HSV Historical Debt, July 5th 2019 A Look At HomeServe's Liabilities We can see from the most recent balance sheet that HomeServe had liabilities of UK£434.2m falling due within a year, and liabilities of UK£386.8m due beyond that. … Looking at the most recent three years, HomeServe recorded free cash flow of 27% of its EBIT, which is weaker than we'd expect.

Simply Wall St -

Have Insiders Been Selling HomeServe plc (LON:HSV) Shares?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for HomeServe HomeServe Insider Transactions Over The Last Year The Chief Executive Officer of Global Partnerships, H. … LSE:HSV Recent Insider Trading, June 28th 2019 Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. … It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of HomeServe insider transactions don't fill us with confidence.

Simply Wall St -

Announcing: HomeServe (LON:HSV) Stock Increased An Energizing 252% In The Last Five Years

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … We note that for HomeServe the TSR over the last 5 years was 323%, which is better than the share price return mentioned above. … A Different Perspective It's nice to see that HomeServe shareholders have received a total shareholder return of 36% over the last year.

Simply Wall St -

HSV Company Info

Description

HomeServe plc, together with its subsidiaries, provides home repair and improvement services to homeowners under the HomeServe brand. The company offers home assistance for plumbing, heating, electrical, locks, glazing, pest control, and technology; and solution for the installation, repair, maintenance, and replacement of heating, ventilation, and air conditioning. It also operates an online marketplace to find checked, vetted, and reviewed local tradespeople for a range of home repairs and improvements. In addition, the company engages in the development and distribution of technology to enable home automation, including LeakBot, smart thermostats, and connected boilers. It serves approximately 8.4 million customers through a network of engineers and sub-contractors in the United Kingdom, North America, France, Spain, Italy, Portugal, Brazil, Mexico, Argentina, Chile, Columbia, and internationally. The company was incorporated in 1991 and is headquartered in Walsall, the United Kingdom.

Details
Name: HomeServe plc
HSV
Exchange: LSE
Founded: 1991
£4,022,303,685
334,634,250
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
6,301
HomeServe employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 20:39
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/12/03
Last earnings filing: 2019/11/19
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


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.