FirstService Corporation (TSE:FSV)
TSX:FSV
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FirstService
(TSX:FSV)
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Rating:61Neutral
Price Target:
C$211.00
▲(1.16% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by solid financial performance (strong multi-year growth and improving free cash flow), partially offset by thin net margins and leverage. Technicals are neutral-to-weak with the stock still below longer-term moving averages. Valuation is the biggest drag due to a very high P/E and low dividend yield, while the latest earnings call indicates steady consolidated growth but notable near-term pressure in the Brands segment.
Positive Factors
Multi-year revenue growth
Consistent multi-year top-line expansion demonstrates durable demand for property services across Residential and Brands, increasing scale and cross-sell potential. This growth supports operating leverage and strategic M&A, underpinning structural revenue momentum over the next 2–6 months.
Negative Factors
Thin net margins & leverage
A low net margin leaves limited buffer against cost or demand shocks, while meaningful leverage constrains strategic flexibility. Even with solid ROE history, the combination of thin profitability and elevated leverage increases downside risk if Brands headwinds or macro pressures persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Consistent multi-year top-line expansion demonstrates durable demand for property services across Residential and Brands, increasing scale and cross-sell potential. This growth supports operating leverage and strategic M&A, underpinning structural revenue momentum over the next 2–6 months.
Read all positive factors
FirstService (FSV) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.20B
Dividend Yield0.71%
Average Volume (3M)123.04K
Price to Earnings (P/E)81.1
Beta (1Y)0.94
Revenue Growth4.15%
EPS Growth23.20%
CountryCA
Employees30,000
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.30
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$283.17Price Target Upside35.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)8.4
Revenue Forecast (FY)C$7.96B
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid corporate-level financial metrics and strong cash generation alongside clear operating headwinds in the Brands division (notably Roofing and Home Services). Consolidated revenue (+5%), EPS (+3%) and significant cash/liquidity and residential margin expansion are meaningful positives. However, Brands margin deterioration (−100 bps), double-digit lead declines in Home Services and flat organic results in Roofing/Restoration temper near-term outlook. Management is taking tactical actions (promotions, selective tuck-ins, efficiency investments) and expects sequential improvement in later quarters, while guidance points to mid-single-digit revenue growth and EBITDA flat-to-slightly up in Q2. Overall, the positives at the consolidated and residential levels are offset by material brand-level pressures, yielding a balanced but cautious tone.Positive Updates
Consolidated Revenue Growth
Total revenues of $1.32 billion, up 5% year-over-year (from $1.25 billion), with organic growth accounting for over half of the increase.
Negative Updates
FirstService Brands Margin Compression
FirstService Brands revenues of $771 million (up 6% YoY) but division EBITDA declined 5.5% to $64 million and margin fell to 8.3% (down 100 bps vs Q1 2025), primarily driven by Roofing and Home Services margin pressure.
Read all updates
Q1-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Total revenues of $1.32 billion, up 5% year-over-year (from $1.25 billion), with organic growth accounting for over half of the increase.
Read all positive updates
Company Guidance
Management guided to mid-single-digit consolidated revenue growth in Q2 with EBITDA flat to slightly up year-over-year; for context Q1 revenues were $1.32B (+5% YoY), adjusted EBITDA $106M (+2%, 8.0% margin, -30bps) and adjusted EPS $0.95 (+3%). FirstService Residential expects similar or slightly better organic growth in Q2 and sequential improvement in Q3/Q4 after Q1 results of $546M (+4%) and EBITDA $46M (+10%, 8.4% margin, +50bps). FirstService Brands expects continued near‑term pressure (Brands Q1 revenues $771M, +6%, EBITDA $64M, -5.5%, 8.3% margin, -100bps): Roofing was +7% in Q1 (driven by tuck‑ins, organic flat) and should see single‑digit top‑line growth from acquisitions in Q2 with organic revenues roughly flat, Restoration backlog is similar to year‑end and Q2 is expected flat to slightly down, while Century Fire grew >10% (high single‑digit organic) and should remain strong. Home Services saw Q1 lead flow down double digits and consumer sentiment ~10% lower YoY, stepped up marketing (pressure on margins) and now expects Q2 revenues roughly in line with prior year. Financial flexibility remains strong with Q1 operating cash flow $88M (>2x YoY), Q1 CapEx $28M (full‑year CapEx now expected modestly below $140M), net debt/EBITDA ~1.5x (vs 1.6x prior YE and 2.0x Q1 ’25) and liquidity >$1B; management expects to continue tuck‑under M&A (similar cadence to last year’s ~$100M of deal activity) while pausing aggressive NCIB repurchases.FirstService Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.57B | 5.59B | 5.22B | 4.33B | 3.75B | 3.25B |
| Gross Profit | 1.42B | 1.50B | 1.72B | 1.39B | 1.18B | 1.05B |
| EBITDA | 543.61M | 544.78M | 506.02M | 378.64M | 333.69M | 312.63M |
| Net Income | 163.26M | 147.59M | 134.38M | 100.39M | 121.07M | 135.21M |
Balance Sheet | ||||||
| Total Assets | 4.30B | 4.28B | 4.19B | 3.63B | 2.77B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 213.43M | 179.76M | 227.60M | 187.62M | 136.22M | 165.66M |
| Total Debt | 1.37B | 1.38B | 1.57B | 1.42B | 952.16M | 823.19M |
| Total Liabilities | 2.39B | 2.42B | 2.56B | 2.27B | 1.63B | 1.49B |
| Stockholders Equity | 1.43B | 1.37B | 1.19B | 1.02B | 907.47M | 799.72M |
Cash Flow | ||||||
| Free Cash Flow | 369.59M | 323.81M | 172.88M | 187.63M | 28.28M | 109.06M |
| Operating Cash Flow | 496.16M | 453.75M | 285.67M | 280.36M | 105.89M | 167.27M |
| Investing Cash Flow | -263.54M | -283.92M | -323.70M | -646.33M | -160.80M | -206.32M |
| Financing Cash Flow | -260.56M | -233.51M | 74.41M | 413.94M | 18.78M | 24.43M |
FirstService Technical Analysis
Neutral
208.59
Price Trends
202.67
Positive
208.81
Negative
231.29
Negative
Market Momentum
1.81
Negative
64.82
Neutral
83.67
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 208.59 is above the 20-day moving average (MA) of 196.15, above the 50-day MA of 202.67, and below the 200-day MA of 231.29, indicating a neutral trend. The MACD of 1.81 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 83.67 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$1.74B | 8.83 | 15.88% | 0.09% | 7.91% | 48.86% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | C$9.20B | 81.14 | 12.07% | 0.71% | 4.15% | 23.20% | |
57 Neutral | C$1.82B | -157.22 | 49.43% | 1.07% | -21.54% | -774.63% | |
54 Neutral | C$7.61B | 30.18 | 7.36% | 0.21% | 17.23% | -36.87% | |
53 Neutral | C$133.34M | 17.25 | -8.54% | 10.31% | 16.34% | ― | |
50 Neutral | C$1.66B | -29.67 | -14.88% | 0.25% | 11.12% | 55.62% |
* Real Estate Sector Average
TSE:FSV
FirstService
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-36.28
-15.35%
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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.