FIRSTSERVICE CORP (FSV)
CA33767E2024 - Common Stock
We assign a fundamental rating of 5 out of 10 to FSV. FSV was compared to 66 industry peers in the Real Estate Management & Development industry. FSV has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
FSV had positive earnings in 4 of the past 5 years.
In the past 5 years FSV always reported a positive cash flow from operatings.
1.2 Ratios
FSV has a Return On Assets of 2.77%. This is amongst the best in the industry. FSV outperforms 83.08% of its industry peers.
FSV has a Return On Equity of 9.80%. This is amongst the best in the industry. FSV outperforms 89.23% of its industry peers.
The Return On Invested Capital of FSV (6.86%) is better than 93.85% of its industry peers.
FSV had an Average Return On Invested Capital over the past 3 years of 7.62%. This is above the industry average of 5.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 9.8% | ||
| ROIC | 6.86% |
ROA(3y)4.17%
ROA(5y)0.73%
ROE(3y)13.35%
ROE(5y)-1.16%
ROIC(3y)7.62%
ROIC(5y)7.48%
1.3 Margins
The Profit Margin of FSV (2.32%) is better than 70.77% of its industry peers.
FSV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.15%, FSV is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
In the last couple of years the Operating Margin of FSV has declined.
FSV has a better Gross Margin (32.01%) than 63.08% of its industry peers.
FSV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | 2.32% | ||
| GM | 32.01% |
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%
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
FSV has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FSV is higher compared to a year ago.
2.2 Solvency
FSV has an Altman-Z score of 3.22. This indicates that FSV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.22, FSV is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
FSV has a debt to FCF ratio of 6.30. This is a slightly negative value and a sign of low solvency as FSV would need 6.30 years to pay back of all of its debts.
The Debt to FCF ratio of FSV (6.30) is better than 75.38% of its industry peers.
FSV has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
FSV has a Debt to Equity ratio of 1.12. This is in the lower half of the industry: FSV underperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.3 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.9
WACC7.63%
2.3 Liquidity
FSV has a Current Ratio of 1.77. 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 Current ratio, with a value of 1.77, FSV is in line with its industry, outperforming 56.92% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that FSV should not have too much problems paying its short term obligations.
FSV has a Quick ratio (1.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.14% over the past year.
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)10.14%
EPS 3Y10.73%
EPS 5Y12.25%
EPS growth Q2Q-9.02%
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.06%
Revenue growth 5Y17.55%
Revenue growth Q2Q5.8%
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 8.77% yearly.
FSV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
EPS Next Y8.11%
EPS Next 2Y10.56%
EPS Next 3Y8.77%
EPS Next 5YN/A
Revenue Next Year13.98%
Revenue Next 2Y10.46%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 31.94, the valuation of FSV can be described as expensive.
Based on the Price/Earnings ratio, FSV is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
FSV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.02.
With a Price/Forward Earnings ratio of 29.55, FSV can be considered very expensive at the moment.
FSV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FSV is cheaper than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, FSV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSV is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FSV is valued a bit cheaper than 66.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.76 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of FSV may justify a higher PE ratio.
PEG (NY)3.94
PEG (5Y)2.61
EPS Next 2Y10.56%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
FSV has a yearly dividend return of 0.66%, which is pretty low.
FSV's Dividend Yield is rather good when compared to the industry average which is at 4.61. FSV pays more dividend than 81.54% of the companies in the same industry.
With a Dividend Yield of 0.66, FSV pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of FSV is nicely growing with an annual growth rate of 10.93%!
FSV has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)10.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FSV pays out 38.90% 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.
DP38.9%
EPS Next 2Y10.56%
EPS Next 3Y8.77%
FIRSTSERVICE CORP
NASDAQ:FSV (4/29/2024, 3:30:01 PM)
After market: 149.18 0 (0%)149.18
-0.62 (-0.41%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.94 | ||
| Fwd PE | 29.55 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.94
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 9.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.15% | ||
| PM (TTM) | 2.32% | ||
| GM | 32.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.14%
EPS 3Y10.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y