FIRSTSERVICE CORP (FSV.CA) Stock Fundamental Analysis
TSX:FSV - Toronto Stock Exchange - CA33767E2024 - Common Stock - Currency: CAD
Taking everything into account, FSV scores 4 out of 10 in our fundamental rating. FSV was compared to 30 industry peers in the Real Estate Management & Development industry. FSV has a medium profitability rating, but doesn't score so well on its financial health evaluation. FSV is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years FSV has 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 3.20% is fine compared to the rest of the industry. FSV outperforms 79.31% of its industry peers.
FSV has a Return On Equity of 11.31%. This is in the better half of the industry: FSV outperforms 79.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.01%, FSV belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
FSV had an Average Return On Invested Capital over the past 3 years of 7.12%. This is in line with the industry average of 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 11.31% | ||
| ROIC | 7.01% |
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
FSV's Profit Margin of 2.58% is fine compared to the rest of the industry. FSV outperforms 62.07% of its industry peers.
FSV's Profit Margin has declined in the last couple of years.
FSV's Operating Margin of 6.19% is on the low side compared to the rest of the industry. FSV is outperformed by 75.86% of its industry peers.
FSV's Operating Margin has been stable in the last couple of years.
FSV has a worse Gross Margin (32.93%) than 65.52% of its industry peers.
FSV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.19% | ||
| PM (TTM) | 2.58% | ||
| GM | 32.93% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, FSV has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of FSV is 7.51, which is on the high side as it means it would take FSV, 7.51 years of fcf income to pay off all of its debts.
FSV's Debt to FCF ratio of 7.51 is fine compared to the rest of the industry. FSV outperforms 75.86% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that FSV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.06, FSV is in line with its industry, outperforming 51.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.51 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC7.24%
2.3 Liquidity
A Current Ratio of 1.83 indicates that FSV should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.83, FSV is doing good in the industry, outperforming 75.86% of the companies in the same industry.
FSV has a Quick Ratio of 1.83. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FSV (1.83) is better than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
FSV shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.07%.
Measured over the past years, FSV shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.76% on average per year.
FSV shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.36%.
The Revenue has been growing by 16.73% on average over the past years. This is quite good.
EPS 1Y (TTM)7.07%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%20.72%
Revenue 1Y (TTM)20.36%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%26.5%
3.2 Future
Based on estimates for the next years, FSV will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.45% on average per year.
The Revenue is expected to grow by 7.54% on average over the next years.
EPS Next Y14.63%
EPS Next 2Y12.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.66%
Revenue Next 2Y7.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 34.98 indicates a quite expensive valuation of FSV.
FSV's Price/Earnings ratio is a bit cheaper when compared to the industry. FSV is cheaper than 65.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, FSV is valued at the same level.
Based on the Price/Forward Earnings ratio of 30.53, 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 65.52% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. FSV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 30.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSV indicates a somewhat cheap valuation: FSV is cheaper than 72.41% of the companies listed in the same industry.
FSV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.82 | ||
| EV/EBITDA | 18.41 |
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.
A more expensive valuation may be justified as FSV's earnings are expected to grow with 12.45% in the coming years.
PEG (NY)2.39
PEG (5Y)3.25
EPS Next 2Y12.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, FSV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.36, FSV has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, FSV's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of FSV is nicely growing with an annual growth rate of 11.41%!
FSV has paid a dividend for at least 10 years, which is a reliable track record.
FSV has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)11.41%
Div Incr Years9
Div Non Decr Years9
5.3 Sustainability
FSV pays out 32.62% of its income as dividend. This is a sustainable payout ratio.
The dividend of FSV is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP32.62%
EPS Next 2Y12.45%
EPS Next 3YN/A
TSX:FSV (2/21/2025, 7:00:00 PM)
248.39
+0.4 (+0.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners76.42%
Inst Owner ChangeN/A
Ins Owners11.75%
Ins Owner ChangeN/A
Market Cap11.24B
Analysts78.33
Price Target216.47 (-12.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.97
Dividend Growth(5Y)11.41%
DP32.62%
Div Incr Years9
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.12%
Min EPS beat(2)-3.07%
Max EPS beat(2)13.31%
EPS beat(4)2
Avg EPS beat(4)1.15%
Min EPS beat(4)-9.66%
Max EPS beat(4)13.31%
EPS beat(8)4
Avg EPS beat(8)1.45%
EPS beat(12)6
Avg EPS beat(12)0.7%
EPS beat(16)10
Avg EPS beat(16)6.69%
Revenue beat(2)2
Avg Revenue beat(2)3.87%
Min Revenue beat(2)1.89%
Max Revenue beat(2)5.84%
Revenue beat(4)4
Avg Revenue beat(4)2.51%
Min Revenue beat(4)0.27%
Max Revenue beat(4)5.84%
Revenue beat(8)7
Avg Revenue beat(8)2.42%
Revenue beat(12)11
Avg Revenue beat(12)2.56%
Revenue beat(16)15
Avg Revenue beat(16)3.09%
PT rev (1m)1.8%
PT rev (3m)3.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)0.98%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.43%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 30.53 | ||
| P/S | 1.52 | ||
| P/FCF | 45.82 | ||
| P/OCF | 27.73 | ||
| P/B | 6.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.41 |
EPS(TTM)7.1
EY2.86%
EPS(NY)8.14
Fwd EY3.28%
FCF(TTM)5.42
FCFY2.18%
OCF(TTM)8.96
OCFY3.61%
SpS163.59
BVpS37.25
TBVpS-28.95
PEG (NY)2.39
PEG (5Y)3.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.2% | ||
| ROE | 11.31% | ||
| ROCE | 9.66% | ||
| ROIC | 7.01% | ||
| ROICexc | 7.52% | ||
| ROICexgc | 23.31% | ||
| OM | 6.19% | ||
| PM (TTM) | 2.58% | ||
| GM | 32.93% | ||
| FCFM | 3.31% |
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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.51 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 68.25% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.49% | ||
| Profit Quality | 128.65% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | N/A |
F-Score8
WACC7.24%
ROIC/WACC0.97
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)7.07%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%20.72%
EPS Next Y14.63%
EPS Next 2Y12.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)20.36%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%26.5%
Revenue Next Year8.66%
Revenue Next 2Y7.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.28%
EBIT growth 3Y14.78%
EBIT growth 5Y16.98%
EBIT Next Year68.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.86%
FCF growth 3Y16.6%
FCF growth 5Y23.08%
OCF growth 1Y1.9%
OCF growth 3Y19.53%
OCF growth 5Y21.52%