TSX:FSV

Stock Analysis Report

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Executive Summary

FirstService Corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the United States and Canada. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has FirstService's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FSV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

FSV

-0.07%

CA Real Estate

1.1%

CA Market


1 Year Return

22.3%

FSV

8.7%

CA Real Estate

-7.0%

CA Market

Return vs Industry: FSV exceeded the Canadian Real Estate industry which returned 8.7% over the past year.

Return vs Market: FSV exceeded the Canadian Market which returned -7% over the past year.


Shareholder returns

FSVIndustryMarket
7 Day-0.6%-0.07%1.1%
30 Day6.7%4.6%-1.2%
90 Day23.7%11.4%6.8%
1 Year23.1%22.3%9.7%8.7%-3.7%-7.0%
3 Year112.7%108.3%47.4%42.1%10.3%-0.4%
5 Year285.8%270.5%82.7%71.3%43.7%21.6%

Price Volatility Vs. Market

How volatile is FirstService's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FirstService undervalued compared to its fair value and its price relative to the market?

91.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FSV (CA$168.73) is trading above our estimate of fair value (CA$46.1)

Significantly Below Fair Value: FSV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FSV is poor value based on its PE Ratio (91.6x) compared to the CA Real Estate industry average (20.9x).

PE vs Market: FSV is poor value based on its PE Ratio (91.6x) compared to the Canadian market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: FSV is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FSV is overvalued based on its PB Ratio (9.2x) compared to the CA Real Estate industry average (0.7x).


Next Steps

Future Growth

How is FirstService forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSV's forecast earnings growth (22.7% per year) is above the savings rate (1.7%).

Earnings vs Market: FSV's earnings (22.7% per year) are forecast to grow slower than the Canadian market (24.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FSV's revenue (9.3% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: FSV's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FSV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has FirstService performed over the past 5 years?

-46.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSV has high quality earnings.

Growing Profit Margin: FSV became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FSV has become profitable over the past 5 years, growing earnings by -46.1% per year.

Accelerating Growth: FSV has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FSV has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (-22.6%).


Return on Equity

High ROE: FSV's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is FirstService's financial position?


Financial Position Analysis

Short Term Liabilities: FSV's short term assets ($764.5M) exceed its short term liabilities ($440.6M).

Long Term Liabilities: FSV's short term assets ($764.5M) do not cover its long term liabilities ($828.5M).


Debt to Equity History and Analysis

Debt Level: FSV's debt to equity ratio (82.9%) is considered high.

Reducing Debt: FSV's debt to equity ratio has reduced from 99.7% to 82.9% over the past 5 years.

Debt Coverage: FSV's debt is well covered by operating cash flow (34.1%).

Interest Coverage: FSV's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is FirstService current dividend yield, its reliability and sustainability?

0.52%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FSV's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.77%).

High Dividend: FSV's dividend (0.52%) is low compared to the top 25% of dividend payers in the Canadian market (5.71%).


Stability and Growth of Payments

Stable Dividend: FSV is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: FSV is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FSV is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FSV's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

D. Patterson (59 yo)

5.25yrs

Tenure

US$4,514,000

Compensation

Mr. D. Scott Patterson has been the Chief Executive Officer of FirstService Corporation since June 1, 2015 and served as its President and Chief Operating Officer from 2003 to 2015. Mr. Patterson is respon ...


CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD4.51M) is about average for companies of similar size in the Canadian market ($USD4.16M).

Compensation vs Earnings: D.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Hennick
Founder & Chairman of the Board5.25yrsUS$184.00k10.04%
$ 736.5m
D. Patterson
President5.25yrsUS$4.51m2.31%
$ 169.6m
Jeremy Rakusin
Chief Financial Officer5.25yrsUS$2.17m0.35%
$ 25.4m
Alex Nguyen
Senior Vice President of Strategy & Corporate Development5.25yrsUS$1.25m0.062%
$ 4.6m
Douglas Cooke
Senior VP5.25yrsUS$1.27m0.51%
$ 37.2m
Charlie Chase
CEO & President of FirstService Brands10.67yrsno data0.025%
$ 1.9m
Charles Fallon
Chief Executive Officer of FirstService Residential7.42yrsUS$1.85mno data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FSV's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Hennick
Founder & Chairman of the Board5.25yrsUS$184.00k10.04%
$ 736.5m
D. Patterson
President5.25yrsUS$4.51m2.31%
$ 169.6m
Brendan Calder
Independent Director5.25yrsUS$281.80k0.014%
$ 1.1m
Michael Stein
Independent Director5.25yrsUS$287.55k0.035%
$ 2.5m
Frederick Reichheld
Independent Director5.25yrsUS$275.80k0.028%
$ 2.0m
Bernard Ghert
Lead Independent Director5.25yrsUS$316.05k0.074%
$ 5.5m
Erin Wallace
Independent Director4.92yrsUS$275.80k0.0065%
$ 478.2k
Joan Sproul
Independent Director2.33yrsUS$285.05k0.0029%
$ 211.2k

5.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FSV's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FSV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.8%.


Top Shareholders

Company Information

FirstService Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FirstService Corporation
  • Ticker: FSV
  • Exchange: TSX
  • Founded: 1988
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: CA$7.334b
  • Shares outstanding: 43.47m
  • Website: https://www.firstservice.com

Number of Employees


Location

  • FirstService Corporation
  • 1255 Bay Street
  • Suite 600
  • Toronto
  • Ontario
  • M5R 2A9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSVTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2015
FSVNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 2015
1GIABST (Boerse-Stuttgart)YesCommon SharesDEEURJun 2015

Biography

FirstService Corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the United States and Canada. The company operates through two se ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 06:03
End of Day Share Price2020/09/17 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.