HomeServe plc (LON:HSV) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of HSV, it is a financially-robust , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on HomeServe here.
Solid track record established dividend payer
In the previous year, HSV has ramped up its bottom line by 30%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, HSV also outperformed its industry, which delivered a growth of 0.3%. This is what investors like to see! HSV is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that HSV manages its cash and cost levels well, which is an important determinant of the company’s health. HSV appears to have made good use of debt, producing operating cash levels of 0.39x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
HSV is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For HomeServe, there are three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for HSV’s future growth? Take a look at our free research report of analyst consensus for HSV’s outlook.
- Valuation: What is HSV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HSV is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HSV? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.