FIRSTSERVICE CORP (FSV.CA) Stock Fundamental Analysis
TSX:FSV - Toronto Stock Exchange - CA33767E2024 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to FSV. FSV was compared to 30 industry peers in the Real Estate Management & Development industry. Both the profitability and the financial health of FSV get a neutral evaluation. Nothing too spectacular is happening here. FSV is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FSV was profitable.
In the past year FSV had a positive cash flow from operations.
Each year in the past 5 years FSV has been profitable.
FSV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FSV (3.09%) is better than 80.00% of its industry peers.
The Return On Equity of FSV (10.85%) is better than 76.67% of its industry peers.
FSV has a Return On Invested Capital of 7.09%. This is amongst the best in the industry. FSV outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSV is below the industry average of 11.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 10.85% | ||
| ROIC | 7.09% |
ROA(3y)3.45%
ROA(5y)3.94%
ROE(3y)11.49%
ROE(5y)12.92%
ROIC(3y)7.12%
ROIC(5y)7.44%
1.3 Margins
FSV has a Profit Margin (2.46%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FSV has declined.
Looking at the Operating Margin, with a value of 6.31%, FSV is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of FSV has remained more or less at the same level.
FSV has a Gross Margin of 33.11%. This is in the lower half of the industry: FSV underperforms 60.00% of its industry peers.
FSV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.31% | ||
| PM (TTM) | 2.46% | ||
| GM | 33.11% |
OM growth 3Y-1.98%
OM growth 5Y0.22%
PM growth 3Y-14.78%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y0.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FSV is destroying value.
Compared to 1 year ago, FSV has more shares outstanding
Compared to 5 years ago, FSV has more shares outstanding
The debt/assets ratio for FSV has been reduced compared to a year ago.
2.2 Solvency
FSV has an Altman-Z score of 3.34. This indicates that FSV is financially healthy and has little risk of bankruptcy at the moment.
FSV's Altman-Z score of 3.34 is amongst the best of the industry. FSV outperforms 83.33% of its industry peers.
FSV has a debt to FCF ratio of 5.99. This is a neutral value as FSV would need 5.99 years to pay back of all of its debts.
FSV has a better Debt to FCF ratio (5.99) than 86.67% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that FSV has dependencies on debt financing.
FSV has a Debt to Equity ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.98
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.94 indicates that FSV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.94, FSV is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
FSV has a Quick Ratio of 1.60. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
FSV has a Quick ratio of 1.60. This is in the better half of the industry: FSV outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.93% over the past year.
The Earnings Per Share has been growing by 10.76% on average over the past years. This is quite good.
The Revenue has grown by 18.67% in the past year. This is quite good.
Measured over the past years, FSV shows a quite strong growth in Revenue. The Revenue has been growing by 16.73% on average per year.
EPS 1Y (TTM)16.93%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%37.31%
Revenue 1Y (TTM)18.67%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%8.02%
3.2 Future
FSV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.41% yearly.
Based on estimates for the next years, FSV will show a small growth in Revenue. The Revenue will grow by 5.61% on average per year.
EPS Next Y14.43%
EPS Next 2Y12.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.61%
Revenue Next 2Y7.21%
Revenue Next 3Y5.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FSV is valuated quite expensively with a Price/Earnings ratio of 33.03.
FSV's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.21. FSV is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.46, FSV can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, FSV is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.44, FSV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 27.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSV is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
FSV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.1 | ||
| EV/EBITDA | 17.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FSV does not grow enough to justify the current Price/Earnings ratio.
FSV's earnings are expected to grow with 12.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.29
PEG (5Y)3.07
EPS Next 2Y12.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, FSV is not a good candidate for dividend investing.
FSV's Dividend Yield is comparable with the industry average which is at 3.44.
With a Dividend Yield of 0.59, FSV pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of FSV is nicely growing with an annual growth rate of 11.41%!
FSV has been paying a dividend for at least 10 years, so it has a reliable track record.
FSV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.41%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
FSV pays out 34.45% of its income as dividend. This is a sustainable payout ratio.
FSV's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP34.45%
EPS Next 2Y12.41%
EPS Next 3YN/A
TSX:FSV (5/9/2025, 7:00:00 PM)
241.45
-2.06 (-0.85%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners76.42%
Inst Owner ChangeN/A
Ins Owners11.75%
Ins Owner ChangeN/A
Market Cap10.97B
Analysts78.33
Price Target214.26 (-11.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.36
Dividend Growth(5Y)11.41%
DP34.45%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.85%
Min EPS beat(2)-3.07%
Max EPS beat(2)8.76%
EPS beat(4)3
Avg EPS beat(4)5.76%
Min EPS beat(4)-3.07%
Max EPS beat(4)13.31%
EPS beat(8)4
Avg EPS beat(8)1.99%
EPS beat(12)6
Avg EPS beat(12)1.32%
EPS beat(16)10
Avg EPS beat(16)4.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-3.04%
Max Revenue beat(2)1.89%
Revenue beat(4)3
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-3.04%
Max Revenue beat(4)5.84%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)10
Avg Revenue beat(12)2.07%
Revenue beat(16)14
Avg Revenue beat(16)2.57%
PT rev (1m)-0.57%
PT rev (3m)0.72%
EPS NQ rev (1m)-2.38%
EPS NQ rev (3m)-5.98%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-1.05%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.03 | ||
| Fwd PE | 27.46 | ||
| P/S | 1.48 | ||
| P/FCF | 36.1 | ||
| P/OCF | 23.48 | ||
| P/B | 6.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.68 |
EPS(TTM)7.31
EY3.03%
EPS(NY)8.79
Fwd EY3.64%
FCF(TTM)6.69
FCFY2.77%
OCF(TTM)10.28
OCFY4.26%
SpS162.61
BVpS36.92
TBVpS-28.15
PEG (NY)2.29
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 10.85% | ||
| ROCE | 9.77% | ||
| ROIC | 7.09% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 22.36% | ||
| OM | 6.31% | ||
| PM (TTM) | 2.46% | ||
| GM | 33.11% | ||
| FCFM | 4.11% |
ROA(3y)3.45%
ROA(5y)3.94%
ROE(3y)11.49%
ROE(5y)12.92%
ROIC(3y)7.12%
ROIC(5y)7.44%
ROICexc(3y)7.62%
ROICexc(5y)8.09%
ROICexgc(3y)22.51%
ROICexgc(5y)26.24%
ROCE(3y)9.82%
ROCE(5y)10.25%
ROICexcg growth 3Y-9.1%
ROICexcg growth 5Y0.26%
ROICexc growth 3Y-5.76%
ROICexc growth 5Y0.74%
OM growth 3Y-1.98%
OM growth 5Y0.22%
PM growth 3Y-14.78%
PM growth 5YN/A
GM growth 3Y0.75%
GM growth 5Y0.5%
F-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 5.99 | ||
| Debt/EBITDA | 2.56 | ||
| Cap/Depr | 67.97% | ||
| Cap/Sales | 2.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.14% | ||
| Profit Quality | 166.87% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.34 |
F-Score8
WACC7.23%
ROIC/WACC0.98
Cap/Depr(3y)70.4%
Cap/Depr(5y)62.01%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.92%
Profit Quality(3y)112.97%
Profit Quality(5y)141.74%
High Growth Momentum
Growth
EPS 1Y (TTM)16.93%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%37.31%
EPS Next Y14.43%
EPS Next 2Y12.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.67%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%8.02%
Revenue Next Year7.61%
Revenue Next 2Y7.21%
Revenue Next 3Y5.61%
Revenue Next 5YN/A
EBIT growth 1Y27.35%
EBIT growth 3Y14.78%
EBIT growth 5Y16.98%
EBIT Next Year72.27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y911.88%
FCF growth 3Y16.6%
FCF growth 5Y23.08%
OCF growth 1Y222.54%
OCF growth 3Y19.53%
OCF growth 5Y21.52%