FIRSTSERVICE CORP (FSV.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:FSV - CA33767E2024 - Common Stock
220.93 CAD
+2.12 (+0.97%)
Taking everything into account, FSV scores 5 out of 10 in our fundamental rating. FSV was compared to 32 industry peers in the Real Estate Management & Development industry. FSV has only an average score on both its financial health and profitability. While showing a medium growth rate, FSV is valued expensive at the moment.
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.
- Each year in the past 5 years FSV has been profitable.
- Each year in the past 5 years FSV had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.16%, FSV is in the better half of the industry, outperforming 71.88% of the companies in the same industry.
- The Return On Equity of FSV (10.34%) is better than 78.13% of its industry peers.
- FSV's Return On Invested Capital of 7.35% is amongst the best of the industry. FSV outperforms 84.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FSV is below the industry average of 10.66%.
- The 3 year average ROIC (7.12%) for FSV is below the current ROIC(7.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 10.34% | ||
| ROIC | 7.35% |
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 of 2.53%. This is comparable to the rest of the industry: FSV outperforms 53.13% of its industry peers.
- In the last couple of years the Profit Margin of FSV has declined.
- FSV has a Operating Margin of 6.43%. This is in the lower half of the industry: FSV underperforms 68.75% of its industry peers.
- FSV's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 33.41%, FSV is doing worse than 62.50% of the companies in the same industry.
- In the last couple of years the Gross Margin of FSV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 2.53% | ||
| GM | 33.41% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FSV is destroying value.
- Compared to 1 year ago, FSV has more shares outstanding
- The number of shares outstanding for FSV has been increased compared to 5 years ago.
- FSV has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.21 indicates that FSV is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.21, FSV is doing good in the industry, outperforming 78.13% of the companies in the same industry.
- The Debt to FCF ratio of FSV is 4.18, which is a neutral value as it means it would take FSV, 4.18 years of fcf income to pay off all of its debts.
- FSV has a better Debt to FCF ratio (4.18) than 90.63% of its industry peers.
- FSV has a Debt/Equity ratio of 0.89. This is a neutral value indicating FSV is somewhat dependend on debt financing.
- FSV has a Debt to Equity ratio of 0.89. This is comparable to the rest of the industry: FSV outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 4.18 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.96
WACC7.64%
2.3 Liquidity
- FSV has a Current Ratio of 1.76. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.76, FSV perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
- FSV has a Quick Ratio of 1.44. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.44, FSV is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
- FSV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.13%, which is quite impressive.
- Measured over the past years, FSV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.76% on average per year.
- FSV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.13%.
- The Revenue has been growing by 16.73% on average over the past years. This is quite good.
EPS 1Y (TTM)20.13%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%7.98%
Revenue 1Y (TTM)11.13%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%3.69%
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 9.04% yearly.
- FSV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y15.49%
EPS Next 2Y11.8%
EPS Next 3Y11.34%
EPS Next 5Y9.04%
Revenue Next Year5.98%
Revenue Next 2Y6.43%
Revenue Next 3Y6.27%
Revenue Next 5Y5.15%
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 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
- The Price/Earnings ratio is 28.00, which means the current valuation is very expensive for FSV.
- FSV's Price/Earnings ratio is in line with the industry average.
- FSV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 25.69, FSV can be considered very expensive at the moment.
- 75.00% of the companies in the same industry are more expensive than FSV, based on the Price/Forward Earnings ratio.
- FSV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28 | ||
| Fwd PE | 25.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FSV is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSV indicates a somewhat cheap valuation: FSV is cheaper than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.42 | ||
| EV/EBITDA | 15.38 |
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)1.81
PEG (5Y)2.6
EPS Next 2Y11.8%
EPS Next 3Y11.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.65%, FSV is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.31, FSV has a dividend in line with its industry peers.
- With a Dividend Yield of 0.65, FSV pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
- On average, the dividend of FSV grows each year by 11.41%, which is quite nice.
- FSV has been paying a dividend for at least 10 years, so it has 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)11.41%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
- FSV pays out 34.35% of its income as dividend. This is a sustainable payout ratio.
- The dividend of FSV is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.35%
EPS Next 2Y11.8%
EPS Next 3Y11.34%
FIRSTSERVICE CORP / FSV.CA FAQ
Can you provide the ChartMill fundamental rating for FIRSTSERVICE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to FSV.CA.
Can you provide the valuation status for FIRSTSERVICE CORP?
ChartMill assigns a valuation rating of 3 / 10 to FIRSTSERVICE CORP (FSV.CA). This can be considered as Overvalued.
What is the profitability of FSV stock?
FIRSTSERVICE CORP (FSV.CA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of FIRSTSERVICE CORP (FSV.CA) stock?
The Price/Earnings (PE) ratio for FIRSTSERVICE CORP (FSV.CA) is 28 and the Price/Book (PB) ratio is 5.48.
How sustainable is the dividend of FIRSTSERVICE CORP (FSV.CA) stock?
The dividend rating of FIRSTSERVICE CORP (FSV.CA) is 5 / 10 and the dividend payout ratio is 34.35%.