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FIRSTSERVICE CORP (FSV.CA) Stock Fundamental Analysis

TSX:FSV - Toronto Stock Exchange - CA33767E2024 - Common Stock - Currency: CAD

247.35  +1.88 (+0.77%)

Fundamental Rating

5

Taking everything into account, FSV scores 5 out of 10 in our fundamental rating. FSV was compared to 31 industry peers in the Real Estate Management & Development industry. FSV has only an average score on both its financial health and profitability. FSV is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

FSV had positive earnings in the past year.
FSV had a positive operating cash flow in the past year.
FSV had positive earnings in 4 of the past 5 years.
FSV had a positive operating cash flow in each of the past 5 years.
FSV.CA Yearly Net Income VS EBIT VS OCF VS FCFFSV.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

Looking at the Return On Assets, with a value of 2.63%, FSV is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
The Return On Equity of FSV (9.42%) is better than 73.33% of its industry peers.
The Return On Invested Capital of FSV (6.81%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSV is in line with the industry average of 6.96%.
Industry RankSector Rank
ROA 2.63%
ROE 9.42%
ROIC 6.81%
ROA(3y)4.17%
ROA(5y)0.73%
ROE(3y)13.35%
ROE(5y)-1.16%
ROIC(3y)7.62%
ROIC(5y)7.48%
FSV.CA Yearly ROA, ROE, ROICFSV.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

FSV's Profit Margin of 2.19% is in line compared to the rest of the industry. FSV outperforms 60.00% of its industry peers.
FSV's Profit Margin has declined in the last couple of years.
The Operating Margin of FSV (6.15%) is worse than 80.00% of its industry peers.
FSV's Operating Margin has declined in the last couple of years.
The Gross Margin of FSV (32.60%) is worse than 70.00% of its industry peers.
In the last couple of years the Gross Margin of FSV has remained more or less at the same level.
Industry RankSector Rank
OM 6.15%
PM (TTM) 2.19%
GM 32.6%
OM growth 3Y-0.64%
OM growth 5Y-2.11%
PM growth 3Y-9.73%
PM growth 5Y-7.46%
GM growth 3Y-0.49%
GM growth 5Y0.23%
FSV.CA Yearly Profit, Operating, Gross MarginsFSV.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

5

2. Health

2.1 Basic Checks

FSV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FSV has been increased compared to 1 year ago.
Compared to 5 years ago, FSV has more shares outstanding
FSV has a worse debt/assets ratio than last year.
FSV.CA Yearly Shares OutstandingFSV.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
FSV.CA Yearly Total Debt VS Total AssetsFSV.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 3.25 indicates that FSV is not in any danger for bankruptcy at the moment.
FSV's Altman-Z score of 3.25 is fine compared to the rest of the industry. FSV outperforms 80.00% of its industry peers.
The Debt to FCF ratio of FSV is 6.36, which is on the high side as it means it would take FSV, 6.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FSV (6.36) is better than 83.33% of its industry peers.
FSV has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of FSV (1.09) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 6.36
Altman-Z 3.25
ROIC/WACC0.92
WACC7.37%
FSV.CA Yearly LT Debt VS Equity VS FCFFSV.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.3 Liquidity

FSV has a Current Ratio of 1.81. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
FSV's Current ratio of 1.81 is amongst the best of the industry. FSV outperforms 83.33% of its industry peers.
A Quick Ratio of 1.47 indicates that FSV should not have too much problems paying its short term obligations.
The Quick ratio of FSV (1.47) is better than 76.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.81
Quick Ratio 1.47
FSV.CA Yearly Current Assets VS Current LiabilitesFSV.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

6

3. Growth

3.1 Past

FSV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.07%.
Measured over the past years, FSV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.25% on average per year.
Looking at the last year, FSV shows a quite strong growth in Revenue. The Revenue has grown by 15.72% in the last year.
Measured over the past years, FSV shows a quite strong growth in Revenue. The Revenue has been growing by 17.55% on average per year.
EPS 1Y (TTM)7.07%
EPS 3Y10.73%
EPS 5Y12.25%
EPS Q2Q%20.72%
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.06%
Revenue growth 5Y17.55%
Sales Q2Q%26.5%

3.2 Future

Based on estimates for the next years, FSV will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.01% on average per year.
Based on estimates for the next years, FSV will show a quite strong growth in Revenue. The Revenue will grow by 10.55% on average per year.
EPS Next Y8.79%
EPS Next 2Y10.3%
EPS Next 3Y10.01%
EPS Next 5YN/A
Revenue Next Year19.37%
Revenue Next 2Y13.1%
Revenue Next 3Y10.55%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
FSV.CA Yearly Revenue VS EstimatesFSV.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
FSV.CA Yearly EPS VS EstimatesFSV.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

3

4. Valuation

4.1 Price/Earnings Ratio

FSV is valuated quite expensively with a Price/Earnings ratio of 34.50.
Based on the Price/Earnings ratio, FSV is valued a bit cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. FSV is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 30.34 indicates a quite expensive valuation of FSV.
FSV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FSV is cheaper than 70.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 94.77. FSV is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 34.5
Fwd PE 30.34
FSV.CA Price Earnings VS Forward Price EarningsFSV.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

70.00% of the companies in the same industry are more expensive than FSV, based on the Enterprise Value to EBITDA ratio.
FSV's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 38.35
EV/EBITDA 19.39
FSV.CA Per share dataFSV.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.93
PEG (5Y)2.82
EPS Next 2Y10.3%
EPS Next 3Y10.01%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.54%, FSV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.17, FSV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, FSV's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.54%

5.2 History

On average, the dividend of FSV grows each year by 10.93%, which is quite nice.
FSV has paid a dividend for at least 10 years, which is a reliable track record.
As FSV did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.93%
Div Incr Years9
Div Non Decr Years9
FSV.CA Yearly Dividends per shareFSV.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

39.38% of the earnings are spent on dividend by FSV. This is a low number and sustainable payout ratio.
FSV's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.38%
EPS Next 2Y10.3%
EPS Next 3Y10.01%
FSV.CA Yearly Income VS Free CF VS DividendFSV.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M
FSV.CA Dividend Payout.FSV.CA Dividend Payout, showing the Payout Ratio.FSV.CA Dividend Payout.PayoutRetained Earnings

FIRSTSERVICE CORP

TSX:FSV (2/7/2025, 7:00:00 PM)

247.35

+1.88 (+0.77%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)02-05 2025-02-05/bmo
Inst Owners78.15%
Inst Owner ChangeN/A
Ins Owners11.63%
Ins Owner ChangeN/A
Market Cap11.20B
Analysts78.18
Price Target212.73 (-14%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend0.88
Dividend Growth(5Y)10.93%
DP39.38%
Div Incr Years9
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.67%
Min EPS beat(2)4.04%
Max EPS beat(2)13.31%
EPS beat(4)2
Avg EPS beat(4)1.16%
Min EPS beat(4)-9.66%
Max EPS beat(4)13.31%
EPS beat(8)5
Avg EPS beat(8)2.11%
EPS beat(12)7
Avg EPS beat(12)2.31%
EPS beat(16)11
Avg EPS beat(16)8.53%
Revenue beat(2)2
Avg Revenue beat(2)3.05%
Min Revenue beat(2)0.27%
Max Revenue beat(2)5.84%
Revenue beat(4)3
Avg Revenue beat(4)1.88%
Min Revenue beat(4)-0.62%
Max Revenue beat(4)5.84%
Revenue beat(8)7
Avg Revenue beat(8)2.64%
Revenue beat(12)11
Avg Revenue beat(12)2.45%
Revenue beat(16)15
Avg Revenue beat(16)3.48%
PT rev (1m)0.04%
PT rev (3m)7.23%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)1.99%
EPS NY rev (1m)0.06%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)1.28%
Revenue NQ rev (3m)3.55%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.91%
Valuation
Industry RankSector Rank
PE 34.5
Fwd PE 30.34
P/S 1.58
P/FCF 38.35
P/OCF 25.22
P/B 6.79
P/tB N/A
EV/EBITDA 19.39
EPS(TTM)7.17
EY2.9%
EPS(NY)8.15
Fwd EY3.3%
FCF(TTM)6.45
FCFY2.61%
OCF(TTM)9.81
OCFY3.97%
SpS156.32
BVpS36.41
TBVpS-29.22
PEG (NY)3.93
PEG (5Y)2.82
Profitability
Industry RankSector Rank
ROA 2.63%
ROE 9.42%
ROCE 9.26%
ROIC 6.81%
ROICexc 7.29%
ROICexgc 22.56%
OM 6.15%
PM (TTM) 2.19%
GM 32.6%
FCFM 4.13%
ROA(3y)4.17%
ROA(5y)0.73%
ROE(3y)13.35%
ROE(5y)-1.16%
ROIC(3y)7.62%
ROIC(5y)7.48%
ROICexc(3y)8.22%
ROICexc(5y)8.14%
ROICexgc(3y)25.42%
ROICexgc(5y)26.53%
ROCE(3y)10.36%
ROCE(5y)10.17%
ROICexcg growth 3Y-11.69%
ROICexcg growth 5Y-11.58%
ROICexc growth 3Y-5.48%
ROICexc growth 5Y-11.59%
OM growth 3Y-0.64%
OM growth 5Y-2.11%
PM growth 3Y-9.73%
PM growth 5Y-7.46%
GM growth 3Y-0.49%
GM growth 5Y0.23%
F-Score4
Asset Turnover1.2
Health
Industry RankSector Rank
Debt/Equity 1.09
Debt/FCF 6.36
Debt/EBITDA 2.76
Cap/Depr 70.02%
Cap/Sales 2.15%
Interest Coverage 250
Cash Conversion 68.06%
Profit Quality 188.1%
Current Ratio 1.81
Quick Ratio 1.47
Altman-Z 3.25
F-Score4
WACC7.37%
ROIC/WACC0.92
Cap/Depr(3y)67.25%
Cap/Depr(5y)60.07%
Cap/Sales(3y)2%
Cap/Sales(5y)1.87%
Profit Quality(3y)96.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.07%
EPS 3Y10.73%
EPS 5Y12.25%
EPS Q2Q%20.72%
EPS Next Y8.79%
EPS Next 2Y10.3%
EPS Next 3Y10.01%
EPS Next 5YN/A
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.06%
Revenue growth 5Y17.55%
Sales Q2Q%26.5%
Revenue Next Year19.37%
Revenue Next 2Y13.1%
Revenue Next 3Y10.55%
Revenue Next 5YN/A
EBIT growth 1Y12.37%
EBIT growth 3Y15.32%
EBIT growth 5Y15.06%
EBIT Next Year95.11%
EBIT Next 3Y30.73%
EBIT Next 5YN/A
FCF growth 1Y1518.57%
FCF growth 3Y-9.41%
FCF growth 5Y26.08%
OCF growth 1Y268.86%
OCF growth 3Y-1.32%
OCF growth 5Y23.02%