FirstService (FSV) AI Stock Analysis

• Market Cap: $12.27B
• Dividend Yield: 0.54%
• Average Volume (3M): 96.97K
• Price to Earnings (P/E): 62.8
• Beta (1Y): 0.83
• Revenue Growth: 20.02%
• EPS Growth: 78.29%
• Country: CA
• Employees: 30,000
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 2.33
• Shares Outstanding: 45,444,000
• 10 Day Avg. Volume: 111,137
• 30 Day Avg. Volume: 96,969
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.44
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 25.10
• 1Y Price Target: $308.06
• Price Target Upside: 14.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: C$305.00 ▲(13.26% Upside)

FirstService scores well due to strong financial performance and positive earnings call insights. However, high valuation and overbought technical indicators temper enthusiasm. The company's strategic focus on acquisitions and debt reduction is a positive, but attention to leverage and profit margins is necessary for sustained growth.

Positive Factors

Financial Performance

FirstService reported strong second-quarter results, delivering an impressive top- and bottom-line beat.

Recurring Revenue

With a recurring revenue base of approximately 80%, FirstService is well-positioned against the prospect of a weakening macro environment.

Negative Factors

Macro Exposure

Only around 20% of overall revenue is exposed to macro trends, creating a highly durable model across macro environments.

Tariff Impact

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

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 various channels, primarily by offering specialized services across its brand portfolio. Key revenue streams include management fees from property management services, service fees from franchise operations, and direct sales of maintenance and repair services. The company's franchise model allows it to expand its reach while earning royalties and fees from franchisees. Significant partnerships with real estate developers and property owners also contribute to its earnings by providing a steady stream of clients needing property management and maintenance services.

FirstService Financial Statement Overview

Summary

FirstService shows strong financial performance with consistent revenue growth and solid margins. The balance sheet reflects manageable debt, and there is strong cash flow generation. However, the relatively low net profit margin and moderate leverage require attention.

Income Statement

FirstService demonstrates strong financial performance with a notable revenue growth rate of 4.71% in the TTM. The gross profit margin stands at 31.61%, while the net profit margin is 2.61%. EBIT and EBITDA margins are solid at 6.39% and 9.71% respectively, indicating efficient operations. However, the net profit margin is relatively low, suggesting room for improvement in cost management.

Balance Sheet

The company maintains a stable balance sheet with a debt-to-equity ratio of 1.24, reflecting a moderate level of leverage. The return on equity (ROE) is 11.39%, indicating decent profitability. The equity ratio is 28.65%, showing a balanced capital structure. While leverage is manageable, it could pose a risk if not carefully monitored.

Cash Flow

FirstService has a robust cash flow position with a free cash flow growth rate of 43.49% in the TTM. The operating cash flow to net income ratio is 2.59, and the free cash flow to net income ratio is 1.74, highlighting strong cash conversion and liquidity. Continued focus on generating positive free cash flow will support financial flexibility.

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: 269.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 269.29 is above the 20-day moving average (MA) of 260.11, above the 50-day MA of 248.53, and above the 200-day MA of 250.99, indicating a bullish trend. The MACD of 7.79 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 57.44 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	75 Outperform	$12.27B	62.76	12.16%	0.54%	20.02%	78.29%
Sector *	65 Neutral	£947.85M	14.43	6.19%	5.89%	15.74%	68.63%
CIGI	―	$7.85B	70.41	8.69%	0.19%	―	―
MEQ	80 Outperform	C$1.82B	5.92	19.75%	0.08%	14.29%	144.57%
AIF	63 Neutral	C$2.29B	178.14	3.20%	1.13%	-33.01%	-2201.72%
SVI	58 Neutral	C$1.70B	―	-23.35%	0.25%	7.94%	-12.23%
BREUF	―	$103.54M	―		8.84%	―	―

FirstService Corporate Events

FirstService Reports Strong Q2 2025 Results with Revenue and Profit Growth

FirstService Corporation reported strong financial results for the second quarter of 2025, with a 9% increase in consolidated revenues to $1.42 billion and a 19% rise in Adjusted EBITDA to $157.1 million. The company also saw a 26% growth in Adjusted EPS, reaching $1.71. Despite macroeconomic uncertainties, FirstService’s resilient performance and profitability across its operations have positioned it well to achieve its 2025 goals. The company’s residential and brands segments both contributed to revenue growth, with notable improvements in operating margins due to efficiency gains and strategic acquisitions.

The most recent analyst rating on (TSE:FSV) stock is a Buy with a C$217.00 price target. To see the full list of analyst forecasts on FirstService stock, see the TSE:FSV Stock Forecast page.