FirstService (FSV) AI Stock Analysis

• Market Cap: $11.10B
• Dividend Yield: 0.61%
• Average Volume (3M): 87.14K
• Price to Earnings (P/E): 61.5
• Beta (1Y): 0.81
• Revenue Growth: 22.37%
• EPS Growth: 46.30%
• Country: CA
• Employees: 30,000
• Sector: Real Estate
• Sector Strength: 58
• Industry: Real Estate - Services
• EPS (TTM): 1.28
• Shares Outstanding: 45,444,000
• 10 Day Avg. Volume: 81,182
• 30 Day Avg. Volume: 87,139
• PEG Ratio: -22.91
• Price to Book (P/B): 6.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.00
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 5.05
• 1Y Price Target: $290.81
• Price Target Upside: 19.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 72 Outperform
• Price Target: C$269.00 ▲(10.16%Upside)

FirstService earns a score of 72, driven by its strong financial performance and positive guidance from the earnings call. However, the high P/E ratio and lack of strong momentum in technical indicators temper the overall score. The company is well-positioned for future growth, but investors should be cognizant of valuation concerns and economic uncertainties impacting organic growth.

Positive Factors

Market Position

FirstService Residential and FirstService Brands operate in large, fragmented markets, providing a long runway for future growth.

Recurring Revenue

With approximately 80% recurring revenue, FirstService is well-positioned for growth despite near-term temporary tariff-related macro impacts.

Revenue and Earnings Growth

FirstService is well-positioned to build on its long-term track record of success to drive annual 10%+ revenue and EBITDA growth for decades.

Negative Factors

Macro Impacts

Indirect tariff-related macro impacts weighed on Roofing and Home Services, offsetting Restoration and Century Fire.

Tariff-related Challenges

Tariff-related macro uncertainties weighed on organic growth in Roofing and Home Services.

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 makes money primarily through its two business segments: FirstService Residential and FirstService Brands. FirstService Residential generates revenue by providing property management services, including maintenance, administrative support, and financial management, usually through contracts with homeowners associations and similar entities. This segment benefits from long-term relationships and recurring revenue streams. FirstService Brands earns revenue through franchising and direct operations in property services, where franchisees pay initial franchise fees as well as ongoing royalties based on their sales. The company also benefits from its investment in technology and customer service, enhancing client satisfaction and loyalty, which in turn supports sustained revenue growth. Key partnerships and a strong brand presence in North American markets further bolster its earnings potential.

FirstService Financial Statement Overview

Summary

FirstService displays strong financial health with consistent revenue and cash flow growth, stable margins, and effective equity utilization despite moderate leverage. The company's revenue has grown significantly, and it has maintained strong operating and free cash flows. However, there is room for improvement in net profit margins.

Income Statement

FirstService demonstrates robust revenue growth with a 20.3% increase from 2022 to 2023, and further from 2023 to 2024 by 20.3%. The gross profit margin for TTM stands at 33.1%, indicating efficient cost management. However, the net profit margin of 2.5% suggests room for improvement in profitability. The EBIT margin is stable at 6.4%, supported by a consistent EBITDA margin of 9.7%.

Balance Sheet

The company maintains a balanced equity ratio of 28.5% TTM, reflecting a solid equity base. The debt-to-equity ratio is 1.32, indicating moderate leverage, which is typical for the industry. The return on equity (ROE) for TTM is 10.9%, showcasing effective utilization of equity to generate profits.

Cash Flow

FirstService shows a strong operating cash flow to net income ratio of 2.57 in TTM, highlighting efficient cash generation relative to net income. The free cash flow growth rate from 2024 to TTM is 26.3%, indicating robust cash management. The free cash flow to net income ratio is 1.67, suggesting healthy cash availability after capital expenditures.

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

FirstService Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 244.18
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 244.18 is above the 20-day moving average (MA) of 240.96, above the 50-day MA of 241.40, and below the 200-day MA of 249.84, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 51.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FSV.

FirstService Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSV	72 Outperform	$11.10B	61.52	11.61%	0.61%	22.37%	46.30%
Sector *	61 Neutral	AU$2.88B	8.20	4.17%	5.07%	17.25%	41.52%
CIGI	―	$6.99B	48.57	11.57%	0.22%	―	―
MEQ	76 Outperform	C$1.75B	7.15	15.90%	0.09%	16.22%	39.56%
AIF	68 Neutral	C$2.34B	178.14	2.13%	1.10%	-23.26%	-644.01%
SVI	61 Neutral	C$1.50B	―	-23.06%	0.29%	5.77%	-388.17%
BREUF	―	$106.08M	―		8.88%	―	―

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 July 8, 2025, to shareholders of record as of June 30, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and underscores its strong financial position within the property services industry.