FirstService (FSV) AI Stock Analysis

• Market Cap: $9.73B
• Dividend Yield: 0.71%
• Average Volume (3M): 123.04K
• Price to Earnings (P/E): 50.7
• Beta (1Y): 0.75
• 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: 45,712,234
• 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: 1.37
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 24.73
• 1Y Price Target: $291.86
• Price Target Upside: 37.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$226.00 ▲(6.58% Upside)

FirstService's overall score is driven by strong financial performance and positive earnings call highlights. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. Challenges in organic growth and margin pressures also weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth through acquisitions indicates a strong market position and ability to expand service offerings, enhancing long-term stability.

Cash Flow and Debt Management

Robust cash flow generation and effective debt management improve financial flexibility, supporting strategic investments and reducing financial risk.

Successful Acquisitions

Strategic acquisitions enhance market presence and service capabilities, positioning the company for sustained growth and competitive advantage.

Negative Factors

Organic Revenue Declines

Flat organic growth suggests challenges in core business expansion, potentially impacting long-term revenue sustainability and market competitiveness.

Weather Impact on Restoration

Weather-related revenue declines highlight vulnerability to external factors, which can affect predictability and stability of earnings in the restoration segment.

Margin Pressures

Margin compression due to negative operating leverage and organic growth declines could strain profitability, affecting long-term financial health.

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 several key streams, primarily from its property management services, which include managing residential communities and commercial properties. The company earns fees from property management contracts, maintenance services, and franchise royalties from its network of franchisees. Additionally, FirstService benefits from providing ancillary services such as maintenance, repair, and restoration, which further contribute to its revenue. Strategic partnerships with franchise brands and suppliers enhance its service offerings and customer reach, while a focus on operational efficiency and customer satisfaction helps drive recurring revenue through long-term contracts and client retention.

FirstService Financial Statement Overview

Summary

FirstService shows strong revenue growth and improved leverage ratios. Profitability margins are stable, though the net profit margin is low. Cash flow generation is robust, supporting operations and strategic initiatives. Continued focus on cost management could enhance financial performance.

Income Statement

FirstService demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 5.48% compared to the previous year. The gross profit margin remains stable at around 32.6%, indicating consistent profitability. However, the net profit margin is relatively low at 2.52%, suggesting room for improvement in cost management or pricing strategies. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM, indicating better leverage management. Return on equity (ROE) has increased to 15.13%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, which limits a complete assessment of financial stability.

Cash Flow

FirstService shows a positive free cash flow growth rate of 16.35% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 2.99, suggesting strong cash flow relative to earnings. However, the free cash flow to net income ratio is moderate at 0.69, indicating potential constraints in cash available for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.50B	5.22B	4.33B	3.75B	3.25B	2.77B
Gross Profit	1.79B	1.72B	1.39B	1.18B	1.05B	900.62M
EBITDA	538.28M	506.02M	378.64M	333.69M	312.63M	272.09M
Net Income	139.31M	134.38M	100.39M	121.07M	135.21M	87.26M
Balance Sheet
Total Assets	4.39B	4.19B	3.63B	2.77B	2.51B	2.20B
Cash, Cash Equivalents and Short-Term Investments	219.92M	227.60M	187.62M	136.22M	165.66M	184.29M
Total Debt	1.51B	1.57B	1.42B	952.16M	823.19M	753.71M
Total Liabilities	2.57B	2.56B	2.27B	1.63B	1.49B	1.34B
Stockholders Equity	1.34B	1.19B	1.02B	907.47M	799.72M	660.40M
Cash Flow
Free Cash Flow	288.65M	172.88M	187.63M	28.28M	109.06M	252.35M
Operating Cash Flow	415.94M	285.67M	280.36M	105.89M	167.27M	291.76M
Investing Cash Flow	-306.99M	-323.70M	-646.33M	-160.80M	-206.32M	-142.26M
Financing Cash Flow	-100.05M	74.41M	413.94M	18.78M	24.43M	-75.20M

FirstService Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 212.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 212.05 is below the 20-day moving average (MA) of 214.00, below the 50-day MA of 225.91, and below the 200-day MA of 244.97, indicating a bearish trend. The MACD of -3.92 indicates Negative momentum. The RSI at 43.73 is Neutral, neither overbought nor oversold. The STOCH value of 56.84 is Neutral, 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	70 Outperform	C$1.70B	5.91	17.29%	0.09%	10.61%	43.64%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AIF	64 Neutral	C$2.37B	-41.23	3.63%	1.09%	-27.10%	-2415.77%
CIGI	63 Neutral	C$10.29B	63.57	8.68%	0.21%	22.85%	-25.32%
FSV	61 Neutral	$9.73B	50.74	11.14%	0.71%	14.10%	28.82%
SVI	43 Neutral	C$1.72B	-490.63	-2.63%	0.25%	9.98%	93.01%
BRE	43 Neutral	$124.24M	-11.51	―	10.33%	58.15%	-235.04%

FirstService Corporate Events

FirstService Corporation Declares Quarterly Cash Dividend

FirstService Corporation has announced a quarterly cash dividend of US$0.275 per common share, payable on January 7, 2026, to shareholders of record as of December 31, 2025. This decision reflects the company’s ongoing commitment to delivering value to its shareholders and underscores its stable financial performance within the property services industry.

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.

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.