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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FSV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FSV was profitable.
FSV had a positive operating cash flow in the past year.
Each year in the past 5 years FSV has been profitable.
In the past 5 years FSV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.20%, FSV belongs to the top of the industry, outperforming 85.94% of the companies in the same industry.
FSV has a Return On Equity of 11.31%. This is amongst the best in the industry. FSV outperforms 93.75% of its industry peers.
FSV's Return On Invested Capital of 7.01% is amongst the best of the industry. FSV outperforms 87.50% of its industry peers.
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 5.55%.
| 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
The Profit Margin of FSV (2.58%) is better than 68.75% of its industry peers.
FSV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.19%, FSV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
FSV's Operating Margin has been stable in the last couple of years.
FSV has a Gross Margin of 32.93%. This is comparable to the rest of the industry: FSV outperforms 59.38% 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 | 6.19% | ||
| 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
An Altman-Z score of 3.31 indicates that FSV is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.31, FSV is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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 has a Debt to FCF ratio of 7.51. This is in the better half of the industry: FSV outperforms 70.31% 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.
FSV's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. FSV is outperformed by 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 7.51 | ||
| Altman-Z | 3.31 |
ROIC/WACC0.97
WACC7.22%
2.3 Liquidity
A Current Ratio of 1.83 indicates that FSV should not have too much problems paying its short term obligations.
FSV has a Current ratio of 1.83. This is comparable to the rest of the industry: FSV outperforms 56.25% of its industry peers.
A Quick Ratio of 1.50 indicates that FSV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.50, FSV is in line with its industry, outperforming 51.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.93% over the past year.
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.
Looking at the last year, FSV shows a very strong growth in Revenue. 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)16.93%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%37.31%
Revenue 1Y (TTM)20.36%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%8.02%
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 12.41% on average per year.
The Revenue is expected to grow by 7.50% on average over the next years.
EPS Next Y14.43%
EPS Next 2Y12.41%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.66%
Revenue Next 2Y7.5%
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
Based on the Price/Earnings ratio of 32.57, the valuation of FSV can be described as expensive.
Based on the Price/Earnings ratio, FSV is valued a bit cheaper than 71.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.92, FSV is valued at the same level.
FSV is valuated quite expensively with a Price/Forward Earnings ratio of 27.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FSV indicates a somewhat cheap valuation: FSV is cheaper than 78.13% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, FSV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 27.07 |
4.2 Price Multiples
76.56% of the companies in the same industry are more expensive than FSV, based on the Enterprise Value to EBITDA ratio.
FSV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FSV is cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.94 | ||
| EV/EBITDA | 18.18 |
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)2.26
PEG (5Y)3.03
EPS Next 2Y12.41%
EPS Next 3YN/A
5. Dividend
5.1 Amount
FSV has a yearly dividend return of 0.60%, which is pretty low.
Compared to an average industry Dividend Yield of 3.71, FSV pays a better dividend. On top of this FSV pays more dividend than 81.25% of the companies listed in the same industry.
With a Dividend Yield of 0.60, FSV pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of FSV is nicely growing with an annual growth rate of 11.41%!
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
FSV pays out 32.62% of its income as dividend. This is a 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.
DP32.62%
EPS Next 2Y12.41%
EPS Next 3YN/A
NASDAQ:FSV (4/25/2025, 10:08:43 AM)
170.99
-0.85 (-0.49%)
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 Change-0.06%
Ins Owners11.75%
Ins Owner ChangeN/A
Market Cap7.77B
Analysts78.33
Price Target155.06 (-9.32%)
Short Float %0.6%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.97
Dividend Growth(5Y)11.41%
DP32.62%
Div Incr Years1
Div Non Decr Years1
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)0.38%
PT rev (3m)1.5%
EPS NQ rev (1m)6.35%
EPS NQ rev (3m)-6.94%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.57 | ||
| Fwd PE | 27.07 | ||
| P/S | 1.49 | ||
| P/FCF | 44.94 | ||
| P/OCF | 27.2 | ||
| P/B | 6.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.18 |
EPS(TTM)5.25
EY3.07%
EPS(NY)6.32
Fwd EY3.69%
FCF(TTM)3.8
FCFY2.22%
OCF(TTM)6.29
OCFY3.68%
SpS114.81
BVpS26.14
TBVpS-20.32
PEG (NY)2.26
PEG (5Y)3.03
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 | 4.18 | ||
| Cash Conversion | 58.49% | ||
| Profit Quality | 128.65% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 3.31 |
F-Score8
WACC7.22%
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)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)20.36%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%8.02%
Revenue Next Year8.66%
Revenue Next 2Y7.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.28%
EBIT growth 3Y14.78%
EBIT growth 5Y16.98%
EBIT Next Year72.27%
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%