Servicemaster Global Holdings Stock Analysis, Valuation (NYSE:SERV)

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$57.32 $0.1 (0.17%) SERV stock closing price May 24, 2018 (Closing)
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Servicemaster Global Holdings
Updated on : May 24, 2018
previous close
SERV 57.3 (0%)
S&P 500 2727.8 (0%)
Closing Price On: May 24, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Building-Maintenance and service
Sector :
Construction
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
6%
Operating Profit
Operating Margin:
17.5%
Sector Average:
7.6%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.74B
Debt/Equity Ratio:
 2.21
Compared to the industry
Cash Flow
Operating cash flow:
$142M
Net Income:
$40M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROE
FCF Margin
Long Term Growth
High Debt Burden
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SERV PS :
2.6
Industry PS :
0.9
Sector:   Construction.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.6%
Return on Equity:
54.5%
Free Cash Flow Margin:
17.8%
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SERV Stock Analysis

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Investors can watch the Amigobulls Servicemaster Global Holdings stock analysis video here. Our SERV analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Servicemaster Global Holdings Inc Stock Rating 2.9/5

Amigobulls SERV stock analysis takes into account various financial ratios like relative valuation, Servicemaster Global Holdings revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Servicemaster Global Holdings dividend performance. We compare Servicemaster Global Holdings valuation with its sector peers to gauge relative attractiveness of SERV stock. Servicemaster Global Holdings stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SERV stock?

  • Servicemaster Global Holdings had a healthy average operating margin of 17.5% over the last 4 quarters.
  • LTM Net margins were good at 17.4% for Servicemaster Global Holdings.
  • The company has an operating cash flow which is 3.6 times the net income.
  • The LTM ROE of 54.5% for Servicemaster Global Holdings is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 17.8%.

Should you sell SERV stock?

  • Revenue growth of 6% has been weak over the last 5 years.
  • Servicemaster Global Holdings is debt laden and has a high debt/equity ratio of  2.21.
  • SERV stock is trading at a PE ratio of 25.9, which is worse than the industry average multiple of 18.9.
  • SERV stock is trading at a PS multiple of 2.6, which is a negative when compared to the Building-Maintenance and service industry average multiple of 0.9.

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Comments on this video and Servicemaster Global Holdings stock

Investors can make use of the Amigobulls Servicemaster Global Holdings stock analysis to ascertain how SERV stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Servicemaster Global Holdings revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about SERV stock.