FirstService (FSV) AI Stock Analysis

• Market Cap: $9.45B
• Dividend Yield: 0.71%
• Average Volume (3M): 123.04K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 0.81
• 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): 1.87
• Shares Outstanding: 45,981,762
• 10 Day Avg. Volume: 99,762
• 30 Day Avg. Volume: 123,043
• PEG Ratio: 5.50
• Price to Book (P/B): 5.15
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 21.85
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 4.61
• Enterprise Value/Ebitda: 15.63
• 1Y Price Target: $289.75
• Price Target Upside: 40.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 8.4
• Revenue Forecast (FY): $7.98B

• Rating: 62 Neutral
• Price Target: C$230.00 ▲(11.92% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 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 and operating margin growth

Sustained top-line expansion alongside stable operating margins signals a resilient service model with recurring contract revenue. This durability supports predictable cash flows, capacity for selective tuck-in M&A, and the ability to sustain operational investments that underpin multi-quarter growth.

Improving cash generation and liquidity

Marked improvement in operating and free cash flow plus nearly $1B of cash/undrawn capacity materially enhances financial flexibility. Strong cash generation supports dividends, selective tuck‑ins, and buffers against cyclical revenue swings, reinforcing the company's multi‑quarter financial resilience.

Diversified, recurring-service segments with Residential strength

A diversified portfolio—residential property management, home services, restoration and Century Fire—provides recurring fee streams and offsets cyclical pockets. Residential and Century Fire momentum indicate durable demand and backlog that stabilizes consolidated performance over multiple quarters.

Negative Factors

Thin net margins and compressed bottom-line profitability

Persistently thin net margins limit earnings sensitivity and the company's ability to absorb cost shocks or invest without external funding. Low bottom‑line conversion makes EPS and free cash flow more vulnerable to interest, integration costs, and margin pressure across segments over several quarters.

Brands segment volatility and competitive pressure

The Brands division faces structural headwinds: storm‑driven restoration revenues fluctuate and roofing experiences intensified competition. Such persistent volatility and margin compression reduce predictability of consolidated EBITDA and require ongoing management focus and capital to restore stable profitability.

Meaningful leverage and balance-sheet data uncertainty

Elevated leverage constrains financial flexibility and heightens interest‑rate sensitivity, limiting runway for large acquisitions or cushioning downturns. The 2025 equity anomaly reduces confidence in the latest balance‑sheet read, complicating assessment of true leverage and long‑term capital allocation choices.

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

Strong and consistent revenue growth with steady operating margins and a recent rebound in operating/free cash flow. Offsetting this are persistently thin net margins, meaningful leverage, and a notable 2025 equity data anomaly that reduces confidence in the latest balance-sheet read.

Income Statement

Revenue growth has been consistently positive across 2020–2025, with strong step-ups in 2023 and an acceleration in 2025. Profitability is steady at the operating level (gross margin ~30–33% and EBIT margin ~6–7% most years), indicating a resilient underlying business model. The key weakness is thin bottom-line profitability: net margin remains low (~2–4%) and has compressed versus earlier years (notably below 2021), suggesting higher costs, interest burden, or integration/operating friction is limiting earnings conversion despite solid revenue expansion.

Balance Sheet

Leverage appears meaningful: total debt has risen materially over time and the company has historically run around ~1.0–1.4x debt relative to equity (2020–2024), which is workable but reduces balance-sheet flexibility. Returns on equity in 2020–2024 are respectable (~10–17%), supporting the view that capital has been productive. The major red flag is that 2025 shows stockholders’ equity as 0 (and debt-to-equity/return on equity as 0), which is likely missing or anomalous data; based on the provided figures, this uncertainty meaningfully lowers confidence in the balance-sheet assessment for the latest period.

Cash Flow

Cash generation is generally solid and improving recently: operating cash flow and free cash flow rebound strongly in 2024–2025, with free cash flow up in 2025 and free cash flow running at a healthy share of net income in most years (~60–86%, though weaker in 2022). The main weakness is volatility: free cash flow dropped sharply in 2021–2022 and the proportion of earnings turning into operating cash flow is not consistently high (coverage is moderate in 2023–2025), implying working-capital swings or reinvestment needs can pressure near-term cash conversion.

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

• Technical Analysis Sentiment: Negative
• Last Price: 205.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 205.51 is below the 20-day moving average (MA) of 213.92, below the 50-day MA of 215.41, and below the 200-day MA of 238.79, indicating a bearish trend. The MACD of -1.63 indicates Positive momentum. The RSI at 40.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.66 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	69 Neutral	C$1.71B	8.83	17.29%	0.09%	10.61%	43.64%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FSV	62 Neutral	$9.45B	47.95	11.14%	0.71%	14.10%	28.82%
AIF	57 Neutral	C$1.86B	-157.22	3.63%	1.07%	-27.10%	-2415.77%
CIGI	54 Neutral	$8.20B	71.12	8.68%	0.21%	22.85%	-25.32%
SVI	53 Neutral	C$1.78B	-136.04	-2.63%	0.25%	9.98%	93.01%
BRE	46 Neutral	C$132.39M	-20.48	―	10.31%	58.15%	-235.04%

FirstService Corporate Events

FirstService Delivers Higher 2025 Earnings on Acquisition-Fueled Growth Despite Mixed Q4

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$5.75. Fourth-quarter revenue edged up 1% year over year to US$1.38 billion, with flat adjusted EBITDA and modestly higher adjusted EPS, as strength in the FirstService Residential division—where revenue grew 8% on the back of contract wins and stable margins—offset weaker results at FirstService Brands, which saw a 3% revenue decline and margin pressure due to fewer weather-related restoration jobs and softer roofing activity. Management characterized the year as one of disciplined execution in a challenging environment and signaled confidence that organic growth will improve as market conditions normalize, suggesting that the company’s acquisitive growth strategy and diversified service platforms continue to underpin its earnings resilience and long-term shareholder value proposition.

The most recent analyst rating on (TSE:FSV) stock is a Buy with a C$211.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.

FirstService Lifts Quarterly Dividend by 11%, Extending Decade of Double-Digit Payout Growth

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 annualized dividend to US$1.22 from US$1.10 and extends a decade-long pattern of at least 10% annual dividend growth, underscoring management’s confidence in FirstService’s strong earnings, free cash flow generation and conservative balance sheet, while signaling continued commitment to returning capital to shareholders and reinforcing its position as a reliable income stock in the property services sector.

The most recent analyst rating on (TSE:FSV) stock is a Buy with a C$211.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.

FirstService Corporation Declares Quarterly 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.

The most recent analyst rating on (TSE:FSV) stock is a Hold with a C$227.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.