FirstService (FSV) AI Stock Analysis

• Market Cap: $10.49B
• Dividend Yield: 0.68%
• Average Volume (3M): 123.04K
• Price to Earnings (P/E): 55.0
• Beta (1Y): 0.76
• Revenue Growth: 14.10%
• EPS Growth: 28.82%
• Country: CA
• Employees: 30,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 2.46
• Shares Outstanding: 45,546,127
• 10 Day Avg. Volume: 99,762
• 30 Day Avg. Volume: 123,043
• PEG Ratio: -181.26
• Price to Book (P/B): 6.86
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 47.12
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 25.10
• 1Y Price Target: $296.71
• Price Target Upside: 32.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 65 Neutral
• Price Target: C$250.00 ▲(11.98% Upside)

FirstService's strong financial performance and positive earnings call highlights are offset by bearish technical indicators and a high P/E ratio, suggesting overvaluation. The company's ability to manage debt and generate cash flow supports its financial stability, but challenges in organic growth and margin pressures pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth through acquisitions indicates a strategic expansion approach, enhancing market presence and long-term revenue potential.

Cash Flow Generation

Strong cash flow generation supports financial flexibility, enabling reinvestment in growth initiatives and debt reduction, strengthening the company's financial position.

Successful Acquisitions

Strategic acquisitions expand the company's market footprint and service offerings, potentially enhancing competitive advantage and long-term growth prospects.

Negative Factors

Organic Growth Challenges

Flat organic growth suggests reliance on acquisitions for expansion, which may not be sustainable long-term if internal growth initiatives do not improve.

Margin Pressures

Margin compression indicates potential inefficiencies or cost pressures, which could impact profitability if not addressed, affecting long-term financial health.

Weather Impact on Restoration

Weather-related revenue declines highlight vulnerability to external factors, suggesting a need for diversification to mitigate such risks and stabilize earnings.

FirstService Business Overview & Revenue Model

Company Description

FirstService Corporation, together with its subsidiaries, provides residential property management and other essential property services to residential and commercial customers in the United States and Canada. The company operates in two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment offers 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 provides a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service swimming pool and amenity management, and security and concierge/front desk; and financial services comprising cash management, other banking transaction-related, and specialized property insurance brokerage. In addition, this segment offers energy management solutions and advisory services, and resale processing services. The FirstService Brands segment operates and provides essential property services to residential and commercial customers, through five franchise networks; and company-owned locations, including 20 California Closets, 12 Paul Davis Restoration, and 1 CertaPro Painters locations. It provides residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; and fire protection and related services. This segment offers its services primarily under the Paul Davis Restoration, First Onsite Restoration, Century Fire Protection, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, and Floor Coverings International brand names. FirstService Corporation was founded in 1989 and is headquartered in Toronto, Canada.

How the Company Makes Money

FirstService generates revenue through various channels, primarily by offering specialized services across its brand portfolio. Key revenue streams include management fees from property management services, service fees from franchise operations, and direct sales of maintenance and repair services. The company's franchise model allows it to expand its reach while earning royalties and fees from franchisees. Significant partnerships with real estate developers and property owners also contribute to its earnings by providing a steady stream of clients needing property management and maintenance services.

FirstService Financial Statement Overview

Summary

FirstService demonstrates strong financial performance with consistent revenue growth and solid margins. The balance sheet reflects a moderate level of debt, which is well-managed, and the company exhibits strong cash flow generation. However, there is room for improvement in net profit margins and managing leverage.

Income Statement

FirstService demonstrates strong financial performance with a notable revenue growth rate of 4.71% in the TTM. The gross profit margin stands at 31.61%, while the net profit margin is 2.61%. EBIT and EBITDA margins are solid at 6.39% and 9.71% respectively, indicating efficient operations. However, the net profit margin is relatively low, suggesting room for improvement in cost management.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 1.24, reflecting a moderate level of leverage. The return on equity (ROE) is 11.39%, indicating decent profitability. The equity ratio is 28.65%, showing a balanced capital structure. While leverage is manageable, it could pose a risk if not carefully monitored.

Cash Flow

FirstService has a robust cash flow position with a free cash flow growth rate of 43.49% in the TTM. The operating cash flow to net income ratio is 2.59, and the free cash flow to net income ratio is 1.74, highlighting strong cash conversion and liquidity. Continued focus on generating positive free cash flow will support financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.46B	5.22B	4.33B	3.75B	3.25B	2.77B
Gross Profit	1.73B	1.72B	1.39B	1.18B	1.05B	900.62M
EBITDA	530.39M	506.02M	378.64M	333.69M	312.63M	272.09M
Net Income	142.67M	134.38M	100.39M	121.07M	135.21M	87.26M
Balance Sheet
Total Assets	4.37B	4.19B	3.63B	2.77B	2.51B	2.20B
Cash, Cash Equivalents and Short-Term Investments	201.81M	227.60M	187.62M	136.22M	165.66M	184.29M
Total Debt	1.55B	1.57B	1.42B	952.16M	823.19M	753.71M
Total Liabilities	2.66B	2.56B	2.27B	1.63B	1.49B	1.34B
Stockholders Equity	1.25B	1.19B	1.02B	907.47M	799.72M	660.40M
Cash Flow
Free Cash Flow	248.10M	172.88M	187.63M	28.28M	109.06M	252.35M
Operating Cash Flow	368.95M	285.67M	280.36M	105.89M	167.27M	291.76M
Investing Cash Flow	-251.41M	-323.70M	-646.33M	-160.80M	-206.32M	-142.26M
Financing Cash Flow	-123.69M	74.41M	413.94M	18.78M	24.43M	-75.20M

FirstService Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 223.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSV, the sentiment is Negative. The current price of 223.26 is below the 20-day moving average (MA) of 246.92, below the 50-day MA of 263.65, and below the 200-day MA of 251.38, indicating a bearish trend. The MACD of -12.30 indicates Positive momentum. The RSI at 23.29 is Positive, neither overbought nor oversold. The STOCH value of 6.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FSV.

FirstService Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	―	C$1.72B	5.59	19.75%	0.08%	14.29%	144.57%
CIGI	―	$11.84B	76.45	8.69%	0.19%	20.00%	-23.17%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FSV	―	$10.49B	54.99	―	0.68%	14.10%	28.82%
AIF	―	C$2.52B	-43.43	3.20%	1.04%	-33.01%	-2201.72%
SVI	―	C$1.80B	―	-2.63%	0.24%	9.98%	93.01%
BRE	―	$129.45M	-6.53	―	9.95%	184.78%	-222.63%

FirstService Corporate Events

FirstService Corp Earnings Call: Mixed Results and Strategic Moves

The recent earnings call for FirstService Corporation presented a mixed sentiment. While the company reported growth in revenue and earnings per share (EPS), driven by successful acquisitions and strong performance in Century Fire, it faced challenges in organic growth, particularly in the restoration and roofing segments. These challenges were attributed to weather impacts and broader macroeconomic uncertainties, which also led to some margin compression.

FirstService Corporation Reports Steady Q3 Growth

FirstService Corporation is a leading North American company in the outsourced property services sector, operating through two main platforms: FirstService Residential, the largest manager of residential communities in North America, and FirstService Brands, a major provider of essential property services through branded operations and franchise systems.

FirstService Corporation Reports Strong Q3 2025 Results Amid Challenges

FirstService Corporation reported a 4% increase in consolidated revenues to $1.45 billion for the third quarter of 2025, driven by the growth in its Residential Division. Adjusted EBITDA rose by 3% to $164.8 million, and Adjusted EPS increased by 8% to $1.76. Despite facing weather-related and macroeconomic challenges impacting its Brands division, the company anticipates a solid year of growth and profitability. The Residential Division saw an 8% revenue increase, while the Brands Division experienced a 1% growth, with organic revenue declines in restoration and roofing services offset by strong performance in fire protection.

The most recent analyst rating on (TSE:FSV) stock is a Hold with a C$214.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.

FirstService Corporation Declares Quarterly Dividend

FirstService Corporation has announced a quarterly cash dividend of US$0.275 per common share, payable on October 7, 2025, to shareholders of record as of September 30, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and underscores its strong financial position in the property services industry. The dividend is classified as an ‘eligible dividend’ for Canadian income tax purposes, highlighting the company’s focus on providing tax-efficient returns to its investors.

The most recent analyst rating on (TSE:FSV) stock is a Hold with a C$214.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.

FirstService Corporation Announces Share Buyback Program

FirstService Corporation has announced its intention to initiate a normal course issuer bid (NCIB) to repurchase up to 1,600,000 of its common shares, representing 3.9% of its public float, over a 12-month period starting August 26, 2025. This move, approved by the Toronto Stock Exchange, is aimed at optimizing the use of corporate funds and mitigating the dilutive impact of stock options. The decision reflects FirstService’s strategic approach to enhance shareholder value and manage its capital structure effectively.

The most recent analyst rating on (TSE:FSV) stock is a Hold with a C$220.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.

FirstService Corporation Reports Strong Q2 2025 Financial Results

FirstService Corporation released its unaudited interim consolidated financial statements for the second quarter ending June 30, 2025. The company reported a revenue increase to $1.42 billion from $1.30 billion in the same period last year, with net earnings attributable to the company rising to $46.1 million from $35.1 million. The financial results highlight the company’s strong operational performance and growth trajectory, despite the lack of an auditor review, which could impact stakeholder confidence.

The most recent analyst rating on (TSE:FSV) stock is a Buy with a C$225.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.