FirstService (FSV) Stock Analysis
Here is a fundamental analysis of FirstService (FSV), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| 1-Year Return | -19.04% | 2.83% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| 1-Year Volatility | 28.22% | 37.29% |
| Beta | 0.93 | 1.23 |
Company Profile
| Profile Item | FSV |
|---|---|
| Name | FirstService Corporation |
| Country/Region | Canada |
| GICS Sector | Real Estate |
| GICS Industry Group | Real Estate Management & Development |
| GICS Industry | Real Estate Management & Development |
| GICS Sub-Industry | Real Estate Services |
| Market Capitalization | 6.59 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | June 2, 2015 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
FirstService (FSV) trades at P/E ratio of 40.38, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
FSV
Real Estate Management & Development industry group
40.38
Group distribution
- Max
- 128.88
- Q3
- 128.31
- FSV
- 40.38
- Median
- 39.38
- Q1
- 18.47
- Min
- 5.10
Largest peers
- CSGP
- 469.14
- ZG
- 128.88
- Z
- 128.12
- FSV
- 40.38
- BEKE
- 38.39
- CBRE
- 30.46
- JLL
- 16.14
Price-to-Sales Ratio (TTM)
FirstService (FSV) trades at 1.18 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
FSV
Real Estate Management & Development industry group
1.18
Group distribution
- Max
- 13.64
- Q3
- 6.19
- Median
- 1.71
- FSV
- 1.18
- Q1
- 0.87
- Min
- 0.00
Largest peers
- CSGP
- 3.93
- ZG
- 2.74
- Z
- 2.72
- FSV
- 1.18
- CBRE
- 0.93
- JLL
- 0.52
- BEKE
- 0.21
Price-to-Book Ratio (MRQ)
FirstService (FSV) trades at 4.61 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
FSV
Real Estate Management & Development industry group
4.61
Group distribution
- Max
- 5.60
- FSV
- 4.61
- Q3
- 4.19
- Median
- 1.91
- Q1
- 1.07
- Min
- 0.41
Largest peers
- FSV
- 4.61
- CBRE
- 4.59
- BEKE
- 1.99
- JLL
- 1.90
- CSGP
- 1.69
- ZG
- 1.59
- Z
- 1.58
Valuation at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 40.38 | 39.38 |
| Price-to-Sales Ratio (TTM) | 1.18 | 1.71 |
| Price-to-Book Ratio (MRQ) | 4.61 | 1.91 |
| Free Cash Flow Yield | 5.24% | 3.48% |
Profitability
Return on Equity (TTM)
FirstService (FSV) posts ROE of 11.24%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
FSV
Real Estate Management & Development industry group
11.24%
Group distribution
- Max
- 22.48%
- FSV
- 11.24%
- Q3
- 11.17%
- Median
- 3.95%
- Q1
- 0.30%
- Min
- -13.61%
Largest peers
- CBRE
- 15.60%
- JLL
- 12.43%
- FSV
- 11.24%
- BEKE
- 5.08%
- ZG
- 1.33%
- Z
- 1.33%
- CSGP
- 0.30%
Net Profit Margin (TTM)
FirstService (FSV) keeps 2.92% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
FSV
Real Estate Management & Development industry group
2.92%
Group distribution
- Max
- 21.64%
- Q3
- 9.72%
- Median
- 3.01%
- FSV
- 2.92%
- Q1
- 0.31%
- Min
- -0.35%
Largest peers
- BEKE
- 3.77%
- JLL
- 3.35%
- CBRE
- 3.11%
- FSV
- 2.92%
- ZG
- 2.27%
- Z
- 2.27%
- CSGP
- 0.73%
Operating Profit Margin (TTM)
FirstService (FSV) turns 3.66% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
FSV
Real Estate Management & Development industry group
3.66%
Group distribution
- Max
- 21.48%
- Q3
- 6.32%
- FSV
- 3.66%
- Median
- 2.97%
- Q1
- -5.10%
- Min
- -21.67%
Largest peers
- BEKE
- 6.74%
- ZG
- 5.09%
- Z
- 5.09%
- FSV
- 3.66%
- JLL
- 3.29%
- CBRE
- 2.65%
- CSGP
- 0.33%
Profitability at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 11.24% | 3.95% |
| Return on Assets (TTM) | 5.09% | 1.16% |
| Net Profit Margin (TTM) | 2.92% | 3.01% |
| Operating Profit Margin (TTM) | 3.66% | 2.97% |
| Gross Profit Margin (TTM) | 33.57% | 41.95% |
Financial Strength
Current Ratio (MRQ)
FirstService (FSV) has current ratio of 1.74, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
FSV
Real Estate Management & Development industry group
1.74
Group distribution
- Max
- 5.67
- Q3
- 3.05
- Median
- 1.83
- FSV
- 1.74
- Q1
- 1.27
- Min
- 0.42
Largest peers
- ZG
- 2.29
- Z
- 2.29
- CSGP
- 2.20
- FSV
- 1.74
- BEKE
- 1.63
- JLL
- 1.12
- CBRE
- 1.08
Debt-to-Equity Ratio (MRQ)
FirstService (FSV) has debt-to-equity ratio of 0.72, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
FSV
Real Estate Management & Development industry group
0.72
Group distribution
- Max
- 1.60
- Q3
- 1.04
- FSV
- 0.72
- Median
- 0.45
- Q1
- 0.21
- Min
- 0.10
Largest peers
- CBRE
- 1.14
- FSV
- 0.72
- JLL
- 0.54
- BEKE
- 0.25
- CSGP
- 0.15
- ZG
- 0.10
- Z
- 0.10
Financial Strength at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.74 | 1.83 |
| Debt-to-Equity Ratio (MRQ) | 0.72 | 0.45 |
| Net Debt / EBITDA | 2.19 | 3.64 |
Dividends
Dividend Yield (TTM)
FirstService (FSV) has dividend yield of 0.85%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
FSV
Real Estate Management & Development industry group
0.85%
Group distribution
- Max
- 2.41%
- Q3
- 1.43%
- FSV
- 0.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BEKE
- 1.63%
- FSV
- 0.85%
- CBRE
- 0.00%
- JLL
- 0.00%
- CSGP
- 0.00%
- ZG
- 0.00%
- Z
- 0.00%
Dividend Payout Ratio (TTM)
FirstService (FSV) has payout ratio of 31.83%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
FSV
Real Estate Management & Development industry group
31.83%
Group distribution
- Max
- 43.71%
- FSV
- 31.83%
- Q3
- 31.65%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BEKE
- 88.12%
- FSV
- 31.83%
- CBRE
- 0.00%
- JLL
- 0.00%
- CSGP
- 0.00%
- ZG
- 0.00%
- Z
- 0.00%
Dividends at a Glance
| Metric | Current stock: FSV | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.85% | 0.00% |
| Dividend Payout Ratio (TTM) | 31.83% | 0.00% |