FIRSTSERVICE CORP (FSV) Stock Fundamental Analysis
USA - NASDAQ:FSV - CA33767E2024 - Common Stock
203.21 USD
+0.54 (+0.27%)
202.979 USD
-0.23 (-0.11%)
Overall FSV gets a fundamental rating of 6 out of 10. We evaluated FSV against 63 industry peers in the Real Estate Management & Development industry. FSV scores excellent on profitability, but 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
FSV had positive earnings in the past year.
In the past year FSV had a positive cash flow from operations.
In the past 5 years FSV has always been profitable.
Each year in the past 5 years FSV had a positive operating cash flow.
1.2 Ratios
FSV's Return On Assets of 3.25% is amongst the best of the industry. FSV outperforms 80.95% of its industry peers.
FSV has a better Return On Equity (11.34%) than 92.06% of its industry peers.
FSV has a better Return On Invested Capital (7.47%) than 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSV is in line with the industry average of 6.57%.
The last Return On Invested Capital (7.47%) for FSV is above the 3 year average (7.12%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 11.34% | ||
| ROIC | 7.47% |
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 has a better Profit Margin (2.61%) than 68.25% of its industry peers.
FSV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.52%, FSV is doing good in the industry, outperforming 68.25% of the companies in the same industry.
In the last couple of years the Operating Margin of FSV has remained more or less at the same level.
With a decent Gross Margin value of 33.22%, FSV is doing good in the industry, outperforming 63.49% of the companies in the same industry.
FSV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 2.61% | ||
| GM | 33.22% |
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
FSV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FSV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FSV has been increased compared to 5 years ago.
FSV has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.54 indicates that FSV is not in any danger for bankruptcy at the moment.
The Altman-Z score of FSV (3.54) is better than 73.02% of its industry peers.
FSV has a debt to FCF ratio of 5.04. This is a neutral value as FSV would need 5.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.04, FSV is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
FSV has a Debt/Equity ratio of 0.98. This is a neutral value indicating FSV is somewhat dependend on debt financing.
FSV has a worse Debt to Equity ratio (0.98) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.04 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.86
WACC8.73%
2.3 Liquidity
FSV has a Current Ratio of 1.74. This is a normal value and indicates that FSV is financially healthy and should not expect problems in meeting its short term obligations.
FSV has a better Current ratio (1.74) than 60.32% of its industry peers.
A Quick Ratio of 1.43 indicates that FSV should not have too much problems paying its short term obligations.
The Quick ratio of FSV (1.43) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.43 |
3. Growth
3.1 Past
FSV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.56%, which is quite impressive.
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.
The Revenue has grown by 16.68% in the past year. This is quite good.
Measured over the past years, FSV shows a quite strong growth in Revenue. The Revenue has been growing by 16.73% on average per year.
EPS 1Y (TTM)27.56%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%25.74%
Revenue 1Y (TTM)16.68%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%9.12%
3.2 Future
FSV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.19% yearly.
FSV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.39% yearly.
EPS Next Y18.67%
EPS Next 2Y13.4%
EPS Next 3Y12.19%
EPS Next 5YN/A
Revenue Next Year7.97%
Revenue Next 2Y7.58%
Revenue Next 3Y6.39%
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 36.29, the valuation of FSV can be described as expensive.
FSV's Price/Earnings ratio is a bit cheaper when compared to the industry. FSV is cheaper than 73.02% of the companies in the same industry.
When comparing the Price/Earnings ratio of FSV to the average of the S&P500 Index (27.20), we can say FSV is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.60 indicates a quite expensive valuation of FSV.
Based on the Price/Forward Earnings ratio, FSV is valued a bit cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. FSV is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.29 | ||
| Fwd PE | 31.6 |
4.2 Price Multiples
71.43% of the companies in the same industry are more expensive than FSV, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSV indicates a somewhat cheap valuation: FSV is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.57 | ||
| EV/EBITDA | 19.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 12.19% in the coming years.
PEG (NY)1.94
PEG (5Y)3.37
EPS Next 2Y13.4%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, FSV is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.37, FSV pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.50, FSV pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of FSV grows each year by 11.41%, which is quite nice.
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 32.66% 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.
DP32.66%
EPS Next 2Y13.4%
EPS Next 3Y12.19%
203.21
+0.54 (+0.27%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners75.99%
Inst Owner Change-0.96%
Ins Owners9.35%
Ins Owner ChangeN/A
Market Cap9.26B
Analysts78.33
Price Target163.86 (-19.36%)
Short Float %0.56%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.97
Dividend Growth(5Y)11.41%
DP32.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.48%
Min EPS beat(2)10.08%
Max EPS beat(2)14.88%
EPS beat(4)3
Avg EPS beat(4)8.8%
Min EPS beat(4)-3.07%
Max EPS beat(4)14.88%
EPS beat(8)4
Avg EPS beat(8)2.95%
EPS beat(12)7
Avg EPS beat(12)2.95%
EPS beat(16)10
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-2.81%
Max Revenue beat(2)0.05%
Revenue beat(4)3
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-2.81%
Max Revenue beat(4)5.84%
Revenue beat(8)6
Avg Revenue beat(8)1.24%
Revenue beat(12)10
Avg Revenue beat(12)1.96%
Revenue beat(16)14
Avg Revenue beat(16)1.84%
PT rev (1m)-0.55%
PT rev (3m)4.72%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)3.71%
EPS NY rev (3m)3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.29 | ||
| Fwd PE | 31.6 | ||
| P/S | 1.71 | ||
| P/FCF | 37.57 | ||
| P/OCF | 25.17 | ||
| P/B | 7.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.28 |
EPS(TTM)5.6
EY2.76%
EPS(NY)6.43
Fwd EY3.16%
FCF(TTM)5.41
FCFY2.66%
OCF(TTM)8.07
OCFY3.97%
SpS119.16
BVpS27.48
TBVpS-20.11
PEG (NY)1.94
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 11.34% | ||
| ROCE | 10.29% | ||
| ROIC | 7.47% | ||
| ROICexc | 7.93% | ||
| ROICexgc | 24.04% | ||
| OM | 6.52% | ||
| PM (TTM) | 2.61% | ||
| GM | 33.22% | ||
| FCFM | 4.54% |
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-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 5.04 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 67.81% | ||
| Cap/Sales | 2.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.05% | ||
| Profit Quality | 173.63% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.43 | ||
| Altman-Z | 3.54 |
F-Score7
WACC8.73%
ROIC/WACC0.86
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)27.56%
EPS 3Y2.97%
EPS 5Y10.76%
EPS Q2Q%25.74%
EPS Next Y18.67%
EPS Next 2Y13.4%
EPS Next 3Y12.19%
EPS Next 5YN/A
Revenue 1Y (TTM)16.68%
Revenue growth 3Y17.1%
Revenue growth 5Y16.73%
Sales Q2Q%9.12%
Revenue Next Year7.97%
Revenue Next 2Y7.58%
Revenue Next 3Y6.39%
Revenue Next 5YN/A
EBIT growth 1Y33.31%
EBIT growth 3Y14.78%
EBIT growth 5Y16.98%
EBIT Next Year73.62%
EBIT Next 3Y24.85%
EBIT Next 5YN/A
FCF growth 1Y471.6%
FCF growth 3Y16.6%
FCF growth 5Y23.08%
OCF growth 1Y186.14%
OCF growth 3Y19.53%
OCF growth 5Y21.52%