NasdaqGS: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.


Snowflake Analysis

Reasonable growth potential with adequate 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

Stable Share Price: FSV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

FSV

6.2%

US Real Estate

2.8%

US Market


1 Year Return

3.0%

FSV

-18.6%

US Real Estate

9.3%

US Market

Return vs Industry: FSV exceeded the US Real Estate industry which returned -18.6% over the past year.

Return vs Market: FSV underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

FSVIndustryMarket
7 Day-0.2%6.2%2.8%
30 Day12.6%7.9%8.9%
90 Day-8.5%-28.5%-0.5%
1 Year3.7%3.0%-18.0%-18.6%11.8%9.3%
3 Year48.3%45.2%-21.0%-22.8%31.4%22.7%
5 Year280.0%264.2%-26.3%-28.5%58.7%40.9%

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?

9.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FSV ($93.96) is trading above our estimate of fair value ($47.76)

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


Price To Earnings Ratio

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

PE vs Market: FSV is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FSV is overvalued based on its PB Ratio (9.2x) compared to the US Real Estate industry average (1.1x).


Next Steps

Future Growth

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

127.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: FSV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: FSV's is expected to become profitable in the next 3 years.

Revenue vs Market: FSV's revenue (10.7% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: FSV's revenue (10.7% 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?

-54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSV is currently unprofitable.

Growing Profit Margin: FSV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FSV is unprofitable, and losses have increased over the past 5 years at a rate of -54.2% per year.

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

Earnings vs Industry: FSV is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-6.4%).


Return on Equity

High ROE: FSV has a negative Return on Equity (-38.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is FirstService's financial position?


Financial Position Analysis

Short Term Liabilities: FSV's short term assets ($648.6M) exceed its short term liabilities ($396.6M).

Long Term Liabilities: FSV's short term assets ($648.6M) do not cover its long term liabilities ($928.9M).


Debt to Equity History and Analysis

Debt Level: FSV's debt to equity ratio (123.8%) is considered high.

Reducing Debt: FSV's debt to equity ratio has reduced from 124.2% to 123.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FSV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FSV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 4.7% per year.


Next Steps

Dividend

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

0.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSV's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: FSV's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (4.55%).


Stability and Growth of Payments

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

Growing Dividend: FSV is not paying a notable dividend for the US 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 US 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 US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

D. Patterson (58yo)

5yrs

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 ($USD4.51M) is about average for companies of similar size in the US market ($USD5.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jay Hennick
Founder & Chairman of the Board5yrsUS$184.00k11.04% $449.2m
D. Patterson
President5yrsUS$4.51m2.32% $94.2m
Jeremy Rakusin
Chief Financial Officer5yrsUS$2.17m0.35% $14.1m
Alex Nguyen
Senior Vice President of Strategy & Corporate Development5yrsUS$1.25m0.10% $4.1m
Douglas Cooke
Senior VP5yrsUS$1.27m0.53% $21.6m
Charlie Chase
CEO & President of FirstService Brands10.42yrsno data0.027% $1.1m
Charles Fallon
Chief Executive Officer of FirstService Residential7.17yrsUS$1.85mno data

5.0yrs

Average Tenure

58yo

Average Age

Experienced Management: FSV's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Hennick
Founder & Chairman of the Board5yrsUS$184.00k11.04% $449.2m
D. Patterson
President5yrsUS$4.51m2.32% $94.2m
Brendan Calder
Independent Director5yrsUS$281.80k0.021% $874.7k
Michael Stein
Independent Director5yrsUS$287.55k0.035% $1.4m
Frederick Reichheld
Independent Director5yrsUS$275.80k0.028% $1.1m
Bernard Ghert
Lead Independent Director5yrsUS$316.05k0.075% $3.0m
Erin Wallace
Independent Director4.67yrsUS$275.80k0.030% $1.2m
Joan Sproul
Independent Director2.08yrsUS$285.05k0.0029% $117.2k

5.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: FSV's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FSV insiders have sold more shares than they have bought 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 11.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: FirstService Corporation
  • Ticker: FSV
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: CA$5.543b
  • Listing Market Cap: CA$4.068b
  • Shares outstanding: 43.42m
  • 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 segments, FirstService Residential and FirstService Brands. The FirstService Residential segment provides property management services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 18 California Closets locations and 9 Paul Davis Restoration locations. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, and Century Fire Protection brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 05:22
End of Day Share Price2020/06/01 00:00
Earnings2020/03/31
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.