FirstService (FSV) AI Stock Analysis

• Market Cap: $10.00B
• Dividend Yield: 0.7%
• Average Volume (3M): 123.04K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 0.79
• 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: 1.33
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 7.43
• Enterprise Value/Ebitda: 24.73
• 1Y Price Target: $298.35
• Price Target Upside: 38.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$227.00 ▲(5.23% Upside)

FirstService's strong financial performance and strategic acquisitions are key strengths, but high valuation and technical indicators suggest caution. Earnings call insights reveal mixed prospects with growth in some segments offset by challenges in others.

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 Brands, operating under the ticker symbol FSV, is a North American service company specializing in property management and related services. The company primarily operates in three main sectors: property management, maintenance, and repair services, offering a diverse range of core products and services that include commercial and residential property management, janitorial services, landscaping, and repair and restoration services. FirstService Brands is dedicated to delivering exceptional service through its portfolio of well-known franchise brands, catering to various customer needs across multiple markets.

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: 215.72
• 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 215.72 is below the 20-day moving average (MA) of 216.71, below the 50-day MA of 241.11, and below the 200-day MA of 247.47, indicating a bearish trend. The MACD of -7.13 indicates Negative momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 49.48 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	74 Outperform	C$1.73B	5.63	19.75%	0.09%	14.29%	144.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CIGI	63 Neutral	$11.11B	71.78	8.68%	0.21%	22.85%	-25.32%
FSV	60 Neutral	$10.00B	52.31	11.14%	0.70%	14.10%	28.82%
AIF	58 Neutral	C$2.43B	-39.93	3.63%	1.11%	-27.10%	-2415.77%
SVI	47 Neutral	C$1.76B	-501.04	-2.63%	0.24%	9.98%	93.01%
BRE	47 Neutral	$126.99M	-6.40	―	10.66%	58.15%	-235.04%

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.