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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mainstreet Equity Corp.

Melcor Developments Ltd.

Halmont Properties Corp.

FirstService Corp.

Morguard Corp.

Wall Financial Corp.

Urbanfund Corp.

Tricon Residential, Inc.

DREAM Unlimited Corp.

Colliers International Group, Inc.

Park Lawn Corp.

Why is FirstService Corp. ?

Strong Long Term Fundamental Strength with a 16.72% CAGR growth in Net Sales

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CAD 515.09 MM
DIVIDEND PER SHARE(HY) Highest at CAD 5.71
INTEREST COVERAGE RATIO(Q) Highest at 785.62

With ROE of 11.53%, it has a expensive valuation with a 7.41 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 9.06%, its profits have risen by 53% ; the PEG ratio of the company is 1.3

High Institutional Holdings at 70.19%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

The stock has generated a return of 9.06% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

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?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

FirstService Corp.

-20.42%

1.34

21.37%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.33%

EBIT Growth (5y)

18.75%

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

33.91%

Pledged Shares

Institutional Holding

70.54%

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

6.92

EV to EBIT

23.43

EV to EBITDA

15.53

EV to Capital Employed

8.21

EV to Sales

1.52

PEG Ratio

1.17

Dividend Yield

ROCE (Latest)

35.04%

ROE (Latest)

11.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 515.09 MM

DIVIDEND PER SHARE(HY)

Highest at CAD 5.71

INTEREST COVERAGE RATIO(Q)

Highest at 785.62

RAW MATERIAL COST(Y)

Fallen by -0.71% (YoY

CASH AND EQV(HY)

Highest at CAD 652.66 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.09%

NET SALES(Q)

Highest at CAD 1,959.24 MM

NET PROFIT(Q)

Highest at CAD 71.23 MM

-2What is not working for the Company

INTEREST(9M)

At CAD 83.74 MM has Grown at 17.58%

Here's what is working for FirstService Corp.

Operating Cash Flow

Highest at CAD 515.09 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)

Interest Coverage Ratio

Highest at 785.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at CAD 5.71 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales

Highest at CAD 1,959.24 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Profit

Highest at CAD 71.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD 71.23 MM has Grown at 61.97%

over average net sales of the previous four periods of CAD 43.97 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 652.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 14.09%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -0.71% (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.

Interest

At CAD 83.74 MM has Grown at 17.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)