ServiceMaster Global Holdings, Inc.
SERV
pitch
long
DC
Thesis
ServiceMaster is expected to grow free cash flow per share by 15-20% per year, with the stock currently trading at a 7.5% FCF yield. The upcoming spinoff of American Home Shield (AHS) and Terminix is anticipated to unlock additional value for shareholders, with a conservative target price of $60 based on sum-of-the-parts analysis.
Did it work?
failed
confidence: high
The thesis anticipated significant growth in free cash flow and a positive impact from the spinoff of American Home Shield and Terminix, leading to a target price of $60. However, the stock has declined by 82.3% since the pitch, indicating that the expected growth and value unlocking did not materialize, leading to a clear failure of the thesis.
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