FirstService Corp. (FSV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Melcor Developments Ltd.

Halmont Properties Corp.

Urbanfund Corp.

Tricon Residential, Inc.

FirstService Corp.

Mainstreet Equity Corp.

Morguard Corp.

DREAM Unlimited Corp.

Colliers International Group, Inc.

Wall Financial Corp.

Park Lawn Corp.

Why is FirstService Corp. ?

Strong Long Term Fundamental Strength with a 15.38% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 15.38%

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CAD 683.63 MM
ROCE(HY) Highest at 12.03%
DEBT-EQUITY RATIO (HY) Lowest at 80.69 %

With ROE of 11.31%, it has a expensive valuation with a 4.62 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -20.20%, its profits have risen by 28.2% ; the PEG ratio of the company is 1.5

High Institutional Holdings at 75.08%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.42% over the previous quarter.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.20% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FirstService Corp. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is FirstService Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

FirstService Corp.

-20.2%

-0.24

28.67%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.38%

EBIT Growth (5y)

13.58%

EBIT to Interest (avg)

8.10

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

27.29%

Dividend Payout Ratio

34.56%

Pledged Shares

Institutional Holding

75.08%

ROCE (avg)

34.23%

ROE (avg)

13.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.62

EV to EBIT

18.58

EV to EBITDA

12.02

EV to Capital Employed

5.25

EV to Sales

1.16

PEG Ratio

1.49

Dividend Yield

ROCE (Latest)

28.27%

ROE (Latest)

11.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 683.63 MM

ROCE(HY)

Highest at 12.03%

DEBT-EQUITY RATIO (HY)

Lowest at 80.69 %

DIVIDEND PER SHARE(HY)

Highest at CAD 5.82

RAW MATERIAL COST(Y)

Fallen by 0.53% (YoY

-5What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD 46.45 MM has Fallen at -52.03%

NET PROFIT(Q)

At CAD 28.92 MM has Fallen at -45.66%

Here's what is working for FirstService Corp.

Operating Cash Flow

Highest at CAD 683.63 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 80.69 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CAD 5.82 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by 0.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for FirstService Corp.

Pre-Tax Profit

At CAD 46.45 MM has Fallen at -52.03%

over average net sales of the previous four periods of CAD 96.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 28.92 MM has Fallen at -45.66%

over average net sales of the previous four periods of CAD 53.22 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)