FirstService Corporation (TSE:FSV)
TSX:FSV
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FirstService
(TSX:FSV)
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Rating:62Neutral
Price Target:
C$206.00
â–²(5.95% Upside)
Action:ReiteratedDate:02/06/26
The score is anchored by solid financial performance (revenue growth, steady operating margins, and improving cash generation) and generally constructive guidance with better leverage and liquidity. These positives are tempered by expensive valuation (high P/E with a low yield) and a mixed-to-weak longer-term technical trend, alongside continued pressure/volatility in parts of the Brands segment.
Positive Factors
Consistent Revenue Growth
Sustained multi-year revenue growth and step-ups in 2023–2025 point to durable demand and successful execution across segments. Consistent top-line expansion supports economies of scale, recurring fee capture in Residential, and provides a base for margin recovery and disciplined reinvestment over the medium term.
Negative Factors
Brands Segment Volatility & Margin Pressure
Material weakness and negative operating leverage in Brands (restoration, roofing) indicate structural margin pressure. Persistent competitive intensity in roofing and volatile restoration demand can compress margins, making consolidated earnings and margin recovery more difficult despite Residential strength.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
Sustained multi-year revenue growth and step-ups in 2023–2025 point to durable demand and successful execution across segments. Consistent top-line expansion supports economies of scale, recurring fee capture in Residential, and provides a base for margin recovery and disciplined reinvestment over the medium term.
Read all positive factors
FirstService (FSV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.94B
Dividend Yield0.71%
Average Volume (3M)123.04K
Price to Earnings (P/E)47.9
Beta (1Y)0.91
Revenue Growth14.10%
EPS Growth28.82%
CountryCA
Employees30,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.87
Shares Outstanding45,981,762
10 Day Avg. Volume99,762
30 Day Avg. Volume123,043
Financial Highlights & Ratios
PEG Ratio5.50
Price to Book (P/B)5.15
Price to Sales (P/S)1.27
P/FCF Ratio21.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$295.00Price Target Upside51.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)8.4
Revenue Forecast (FY)C$7.98B
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,...
How the Company Makes Money
FirstService makes money primarily by selling recurring and project-based property services through its two operating segments. In FirstService Residential, revenue is generated mainly from property management and related services delivered under ...
FirstService Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call presented a constructive overall picture: the company delivered solid full-year financial results with improved margins, strong cash flow, reduced leverage, an 11% dividend increase, and continued strength in FirstService Residential and Century Fire. However, the Brands division experienced a weaker quarter with EBITDA and margin pressure, roofing demand and competition remain challenged, storm-related restoration revenue is volatile, and there are near-term organic headwinds (notably in Q1). Management is cautious on M&A, focused on tuck-ins, and expects consolidated margins to be roughly flat in 2026 while targeting high-single-digit EBITDA growth later in the year.Positive Updates
Consolidated Full-Year Revenue and Earnings Growth
Full-year 2025 consolidated revenues rose 5% to $5.5 billion, adjusted EBITDA increased 10% to $563 million (margin improved 40 bps to 10.2%), and adjusted EPS grew 15% to $5.75.
Negative Updates
FirstService Brands Q4 Decline and Margin Compression
Q4 Brands revenues were $820 million (down 3% YoY) and EBITDA fell 12% to $88.5 million, with the quarter's margin down 110 bps to 10.8% driven by weaker organic top-line performance and negative operating leverage in restoration and roofing.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Full-Year Revenue and Earnings Growth
Full-year 2025 consolidated revenues rose 5% to $5.5 billion, adjusted EBITDA increased 10% to $563 million (margin improved 40 bps to 10.2%), and adjusted EPS grew 15% to $5.75.
Read all positive updates
Company Guidance
Management guided consolidated Q1 revenue growth in the mid-single-digit range with Q1 consolidated adjusted EBITDA expected to be roughly in line with Q1 2025, and for the full year they expect EBITDA to grow in the high single digits with consolidated EBITDA margin relatively flat versus the 10.2% reported for 2025. Segment guidance included FirstService Residential organic growth in the mid-single-digits for 2026 (with Q1 at the bottom end, ~3–4%), FirstService Brands seeing a weaker Q1 but sequential pickup thereafter (restoration expected to return to growth assuming normal weather, roofing modest organic growth with Q1 revenues up mid-single-digits versus prior year but approximately flat organically, home services guiding to low-to-mid single-digit revenue growth, and Century Fire expecting 10%+ growth spread evenly across the year). Capital allocation and liquidity guidance included 2026 CapEx of about $140 million, continued selective tuck‑under M&A, an 11% dividend increase to $1.22 per share annually, net leverage of ~1.6x net debt/adjusted EBITDA at year‑end and cash plus undrawn capacity totaling ~$970 million.FirstService Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.59B | 5.22B | 4.33B | 3.75B | 3.25B |
| Gross Profit | 1.50B | 1.72B | 1.39B | 1.18B | 1.05B |
| EBITDA | 544.78M | 506.02M | 378.64M | 333.69M | 312.63M |
| Net Income | 147.59M | 134.38M | 100.39M | 121.07M | 135.21M |
Balance Sheet | |||||
| Total Assets | 4.28B | 4.19B | 3.63B | 2.77B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 179.76M | 227.60M | 187.62M | 136.22M | 165.66M |
| Total Debt | 1.38B | 1.57B | 1.42B | 952.16M | 823.19M |
| Total Liabilities | 2.42B | 2.56B | 2.27B | 1.63B | 1.49B |
| Stockholders Equity | 1.37B | 1.19B | 1.02B | 907.47M | 799.72M |
Cash Flow | |||||
| Free Cash Flow | 323.81M | 172.88M | 187.63M | 28.28M | 109.06M |
| Operating Cash Flow | 453.75M | 285.67M | 280.36M | 105.89M | 167.27M |
| Investing Cash Flow | -283.92M | -323.70M | -646.33M | -160.80M | -206.32M |
| Financing Cash Flow | -233.51M | 74.41M | 413.94M | 18.78M | 24.43M |
FirstService Technical Analysis
Neutral
194.43
Price Trends
205.13
Negative
210.03
Negative
233.04
Negative
Market Momentum
-4.21
Negative
47.20
Neutral
87.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSV, the sentiment is Neutral. The current price of 194.43 is above the 20-day moving average (MA) of 192.90, below the 50-day MA of 205.13, and below the 200-day MA of 233.04, indicating a neutral trend. The MACD of -4.21 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 87.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FSV.
FirstService Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$1.65B | 8.83 | 17.29% | 0.09% | 10.61% | 43.64% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$8.94B | 47.95 | 11.26% | 0.71% | 14.10% | 28.82% | |
57 Neutral | C$1.92B | -157.22 | 3.63% | 1.07% | -27.10% | -2415.77% | |
54 Neutral | C$7.66B | 30.18 | 8.68% | 0.21% | 22.85% | -25.32% | |
53 Neutral | C$1.66B | -136.04 | -2.63% | 0.25% | 9.98% | 93.01% | |
53 Neutral | C$129.64M | 17.25 | -8.54% | 10.31% | 58.15% | -235.04% |
* Real Estate Sector Average
TSE:FSV
FirstService
194.43
-34.08
-14.91%
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FirstService Corporate Events
Business Operations and StrategyFinancial Disclosures
FirstService Delivers Higher 2025 Earnings on Acquisition-Fueled Growth Despite Mixed Q4
Positive
Feb 4, 2026
FirstService Corporation reported a solid 2025 performance, with annual revenue rising 5% to US$5.50 billion, driven largely by tuck-under acquisitions, and adjusted EBITDA climbing 10% to US$562.8 million, while adjusted EPS advanced 15% to US$5....
Dividends
FirstService Lifts Quarterly Dividend by 11%, Extending Decade of Double-Digit Payout Growth
Positive
Feb 3, 2026
FirstService Corporation has announced an 11% increase in its quarterly cash dividend to US$0.305 per common share, up from US$0.275, payable on April 7, 2026 to shareholders of record as of March 31, 2026. The move lifts the company’s annua...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.