FIRSTSERVICE CORP (FSV) Stock Fundamental Analysis
NASDAQ:FSV - Nasdaq - CA33767E2024 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FSV. FSV was compared to 64 industry peers in the Real Estate Management & Development industry. While FSV has a great profitability rating, there are some minor concerns on its financial health. FSV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FSV had positive earnings in the past year.
In the past year FSV had a positive cash flow from operations.
In the past 5 years FSV has always been profitable.
FSV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FSV's Return On Assets of 3.09% is amongst the best of the industry. FSV outperforms 84.62% of its industry peers.
The Return On Equity of FSV (10.85%) is better than 93.85% of its industry peers.
FSV's Return On Invested Capital of 7.09% is amongst the best of the industry. FSV outperforms 90.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSV is in line with the industry average of 5.47%.
| 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
With a decent Profit Margin value of 2.46%, FSV is doing good in the industry, outperforming 69.23% of the companies in the same industry.
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 in the better half of the industry, outperforming 70.77% of the companies in the same industry.
FSV's Operating Margin has been stable in the last couple of years.
The Gross Margin of FSV (33.11%) is better than 61.54% 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 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FSV is destroying value.
FSV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, FSV has more shares outstanding
FSV has a better debt/assets ratio than last year.
2.2 Solvency
FSV has an Altman-Z score of 3.38. 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 3.38, FSV is in the better half of the industry, outperforming 78.46% of the companies in the same industry.
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's Debt to FCF ratio of 5.99 is fine compared to the rest of the industry. FSV outperforms 73.85% of its industry peers.
FSV has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
FSV has a Debt to Equity ratio of 1.08. This is in the lower half of the industry: FSV underperforms 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.96
WACC7.42%
2.3 Liquidity
FSV has a Current Ratio of 1.94. 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 decent Current ratio value of 1.94, FSV is doing good in the industry, outperforming 63.08% 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.
Looking at the Quick ratio, with a value of 1.60, FSV is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| 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.
FSV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.67%.
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%8.01%
3.2 Future
The Earnings Per Share is expected to grow by 12.41% on average over the next years. This is quite good.
FSV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.61% yearly.
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 33.89.
Compared to the rest of the industry, the Price/Earnings ratio of FSV indicates a somewhat cheap valuation: FSV is cheaper than 73.85% of the companies listed in the same industry.
FSV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 28.17, the valuation of FSV can be described as expensive.
Based on the Price/Forward Earnings ratio, FSV is valued a bit cheaper than the industry average as 78.46% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, FSV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 28.17 |
4.2 Price Multiples
FSV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FSV is cheaper than 73.85% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FSV is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.03 | ||
| EV/EBITDA | 18.08 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FSV's earnings are expected to grow with 12.41% in the coming years.
PEG (NY)2.35
PEG (5Y)3.15
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.
Compared to an average industry Dividend Yield of 3.44, FSV pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.59, FSV pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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.
The dividend of FSV decreased recently.
Dividend Growth(5Y)11.41%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
34.45% of the earnings are spent on dividend by FSV. This is a low number and 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
177.94
-0.78 (-0.44%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change0%
Ins Owners9.35%
Ins Owner ChangeN/A
Market Cap8.09B
Analysts78.33
Price Target156.4 (-12.11%)
Short Float %0.67%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.97
Dividend Growth(5Y)11.41%
DP34.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.5%
Min EPS beat(2)-3.07%
Max EPS beat(2)10.08%
EPS beat(4)3
Avg EPS beat(4)6.09%
Min EPS beat(4)-3.07%
Max EPS beat(4)13.31%
EPS beat(8)4
Avg EPS beat(8)2.15%
EPS beat(12)6
Avg EPS beat(12)1.43%
EPS beat(16)10
Avg EPS beat(16)4.73%
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)1.89%
Revenue beat(4)3
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)5.84%
Revenue beat(8)6
Avg Revenue beat(8)1.54%
Revenue beat(12)10
Avg Revenue beat(12)2.09%
Revenue beat(16)14
Avg Revenue beat(16)2.58%
PT rev (1m)-0.04%
PT rev (3m)4.36%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-1.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.89 | ||
| Fwd PE | 28.17 | ||
| P/S | 1.52 | ||
| P/FCF | 37.03 | ||
| P/OCF | 24.09 | ||
| P/B | 6.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.08 |
EPS(TTM)5.25
EY2.95%
EPS(NY)6.32
Fwd EY3.55%
FCF(TTM)4.8
FCFY2.7%
OCF(TTM)7.39
OCFY4.15%
SpS116.82
BVpS26.53
TBVpS-20.23
PEG (NY)2.35
PEG (5Y)3.15
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 | 3.38 |
F-Score8
WACC7.42%
ROIC/WACC0.96
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%8.01%
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 Year73.62%
EBIT Next 3Y24.85%
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%