BST:1GIA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Limited growth with worrying balance sheet.


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


Market Performance


7 Day Return

0.5%

1GIA

0.4%

DE Real Estate

4.1%

DE Market


1 Year Return

33.0%

1GIA

2.3%

DE Real Estate

2.4%

DE Market

Return vs Industry: 1GIA exceeded the German Real Estate industry which returned 2.3% over the past year.

Return vs Market: 1GIA exceeded the German Market which returned 2.4% over the past year.


Shareholder returns

1GIAIndustryMarket
7 Day0.5%0.4%4.1%
30 Day0.6%8.8%1.7%
90 Day6.6%3.5%3.7%
1 Year33.9%33.0%5.0%2.3%5.6%2.4%
3 Yearn/a43.7%32.6%19.2%8.9%
5 Yearn/a138.1%103.8%43.2%23.7%

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

No news available

Valuation

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

18.73x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 1GIA (€91.5) is trading above our estimate of fair value (€63.22)

Significantly Undervalued: 1GIA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1GIA is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: 1GIA is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1GIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1GIA is overvalued based on its PB Ratio (18.7x) compared to the DE Real Estate industry average (1.4x).


Next Steps

Future Growth

How is FirstService forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1GIA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1GIA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1GIA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1GIA's revenue (14.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 1GIA's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 1GIA's Return on Equity is forecast to be very high in 3 years time (41.4%).


Next Steps

Past Performance

How has FirstService performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1GIA is unprofitable, and losses have increased over the past 5 years at a rate of -10.5% per year.

Accelerating Growth: Unable to compare 1GIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1GIA is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (2.5%).


Return on Equity

High ROE: 1GIA has a negative Return on Equity (-58.85%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1GIA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1GIA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is FirstService's financial position?


Financial Position Analysis

Short Term Liabilities: 1GIA's short term assets ($627.6M) exceeds its short term liabilities ($376.1M)

Long Term Liabilities: 1GIA's short term assets (627.6M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 1GIA's debt to equity ratio (249.2%) is considered high

Reducing Debt: 1GIA's debt to equity ratio has increased from 94.9% to 249.2% over the past 5 years.

Debt Coverage: 1GIA's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: 1GIA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: 1GIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1GIA's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

0.59%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1GIA's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.45%).

High Dividend: 1GIA's dividend (0.59%) is low compared to the top 25% of dividend payers in the German market (3.78%).

Stable Dividend: 1GIA is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: 1GIA is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1GIA is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1GIA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of FirstService's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

D. Patterson (58yo)

4.3yrs

Tenure

US$3,989,600

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: Insufficient data to establish whether D.'s total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: D.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.3yrs

Average Tenure

58yo

Average Age

Experienced Management: 1GIA's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 1GIA's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: 1GIA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$36,90830 Sep 19
Erin Wallace
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$92.27
SellUS$165,86322 Aug 19
Brendan Calder
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$92.15
SellUS$47,24129 Jul 19
Michael Natale
EntityIndividual
Shares500
Max PriceUS$94.48
SellUS$165,66506 Jun 19
Kevin Roy
EntityIndividual
Shares2,000
Max PriceUS$83.00
SellUS$485,21020 Feb 19
Frederick Reichheld
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,300
Max PriceUS$77.02
SellUS$433,40811 Feb 19
Frederick Reichheld
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,800
Max PriceUS$88.30
SellUS$1,394,03608 Feb 19
Douglas Cooke
EntityIndividual
Role
Secretary
Senior VP
Shares18,750
Max PriceUS$74.48
SellUS$132,48003 Dec 18
Frederick Reichheld
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$66.24
SellUS$129,90001 Nov 18
Frederick Reichheld
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$64.95

Ownership Breakdown


Management Team

  • Jay Hennick (62yo)

    Founder & Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$1.91m
  • D. Patterson (58yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$3.99m
  • Doug Cooke (59yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$1.09m
  • Chuck Fallon (56yo)

    Chief Executive Officer of FirstService Residential

    • Tenure: 6.5yrs
    • Compensation: US$1.85m
  • Jeremy Rakusin (50yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.90m
  • Charlie Chase (58yo)

    CEO & President of FirstService Brands

    • Tenure: 9.8yrs
  • Alex Nguyen (36yo)

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 4.3yrs
    • Compensation: US$1.06m

Board Members

  • Jay Hennick (62yo)

    Founder & Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$1.91m
  • D. Patterson (58yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$3.99m
  • Brendan Calder (72yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$231.00k
  • Michael Stein (68yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$233.00k
  • Fred Reichheld (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$226.00k
  • Bernard Ghert (79yo)

    Lead Director

    • Tenure: 4.3yrs
    • Compensation: US$260.00k
  • Erin Wallace (59yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$227.00k
  • Joan Sproul (62yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$209.25k

Company Information

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


Key Information

  • Name: FirstService Corporation
  • Ticker: 1GIA
  • Exchange: BST
  • Founded: 1988
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: CA$5.256b
  • Listing Market Cap: CA$3.602b
  • Shares outstanding: 39.22m
  • Website: https://www.firstservice.com

Number of Employees


Location

  • FirstService Corporation
  • 1140 Bay Street
  • Suite 4000
  • Toronto
  • Ontario
  • M5S 2B4
  • 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 Analysis2019/10/16 21:58
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.