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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on FSV

FirstService Corporation's recent performance was impacted by a decline in share price, with a 9.6% one-month return drop. Despite this, the company's long-term track record remains strong. The company's Q3 earnings beat estimates, with a $57.2 million profit, but net earnings decreased despite higher revenue. The company's adjusted EBITDA was $164.8 million, and adjusted EPS was $1.76. A quarterly cash dividend of $0.275 per common share was declared. The company's growth prospects and financials are considered strong.

1.c. Company Highlights

2. FirstService Corporation's Q3 Earnings: A Mixed Bag

FirstService Corporation reported Q3 revenues of $1.45 billion, up 4% year-over-year, driven by tuck-under acquisitions, with organic growth flat overall. EBITDA was $165 million, up 3%, with a consolidated margin of 11.4%. Earnings per share were $1.76, up 8%, beating analyst estimates of $1.31 was not found but actual EPS came out at $1.76 relative to some '2.46' in some other period.

Publication Date: Oct -27

📋 Highlights
  • Revenue & Profit Growth:: Q3 revenue reached $1.45B (+4% YoY), EBITDA grew 3% to $165M (11.4% margin), and EPS rose 8% to $1.76.
  • Segment Performance:: FirstService Residential revenue grew 8% (organic +5%), while FirstService Brands declined 4% organically despite 1% revenue growth.
  • Century Fire & Acquisition Strategy:: Century Fire revenue surged >10%, while roofing acquisitions slowed due to high competition and macroeconomic uncertainty.
  • Q4 Outlook & Cash Flow:: Organic revenue expected to drop 10%+ in Q4; $125M cash flow from operations and $45M in acquisition investments maintained.
  • Long-Term Growth Drivers:: Full-year revenue growth forecasted at mid-single digits, EBITDA growth in high single digits, with $900M+ in liquidity for capital deployment.

Segmental Performance

FirstService Residential revenues were up 8%, with organic growth at 5%, while FirstService Brands revenues were up 1%, with organic declines of 4%. The restoration brands saw revenues down 7% year-over-year but up sequentially. Century Fire had another strong quarter with revenues up over 10%, and the home service brands generated flat revenues.

Guidance and Outlook

For Q4, the company expects total roofing revenues to be up modestly, organic revenues down 10% or more. They anticipate similar growth at FirstService Residential and flat revenues at home service brands. The company expects mid-single-digit growth in consolidated annual revenues for the full year and high single-digit growth in EBITDA.

Cash Flow and Acquisitions

The company generated $125 million in cash flow from operations during Q3 and invested $45 million in acquisitions. They have over $900 million in total cash and credit facility capacity. The company plans to deploy capital every year and has opportunities in the pipeline, despite high competition for tuck-under deals.

Valuation and Ratios

With a P/E Ratio of 39.06 and EV/EBITDA of 16.57, the stock appears to be priced for growth. Analysts estimate next year's revenue growth at 6.5%. The company's ROE is 15.13%, indicating a relatively healthy return on equity. The Net Debt / EBITDA ratio is 2.39, suggesting a manageable debt burden.

Macro Environment and Strategy

The slowdown in roofing awards is attributed to macro factors, including a decline in new construction permitting starts. The company expects the weakness to carry through Q4 and is uncertain about the timing of a recovery. Despite this, the company remains focused on its brand-building strategy, emphasizing people, customer service, and culture, with a long-term approach and timeline.

3. NewsRoom

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FirstService Declares Quarterly Cash Dividend on Common Shares

Dec -04

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Should You Investigate FirstService Corporation (TSE:FSV) At CA$214?

Nov -25

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Liberty All-Star® Growth Fund, Inc. October 2025 Monthly Update

Nov -14

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TRTX or FSV: Which Is the Better Value Stock Right Now?

Nov -13

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Institutional owners may take dramatic actions as FirstService Corporation's (TSE:FSV) recent 3.5% drop adds to one-year losses

Nov -11

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Erin Hosler Appointed Director of Residential Hospitality of FirstService Residential New York

Nov -10

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FirstService Residential Welcomes Quincy Towers to its New England Portfolio

Oct -28

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FirstService Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Oct -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.84%)

6. Segments

FirstService Brands

Expected Growth: 12%

FirstService Brands' 12% growth driven by increasing demand for essential services, expansion into new markets, and strategic acquisitions. Strong brand recognition, diversified revenue streams, and operational efficiencies also contribute to growth. Additionally, investments in digital transformation and customer experience enhancements support long-term sustainability.

FirstService Residential

Expected Growth: 16%

FirstService Residential's 16% growth is driven by increasing demand for property management services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on technology integration, customer service, and operational efficiency has enabled it to attract and retain a growing client base, contributing to its rapid growth.

7. Detailed Products

Residential Property Management

FirstService Corporation provides residential property management services, including property maintenance, financial management, and customer service, to homeowners associations, condominiums, and cooperatives.

Commercial Property Management

FirstService offers commercial property management services, including leasing, property maintenance, and financial management, to commercial property owners and investors.

Real Estate Brokerage

FirstService provides real estate brokerage services, including buying, selling, and leasing residential and commercial properties, through its network of agents and brokers.

Property Restoration

FirstService offers property restoration services, including emergency response, mitigation, and reconstruction, to homeowners and businesses affected by disasters.

Field Services

FirstService provides field services, including inspections, repairs, and maintenance, to homeowners, businesses, and insurance companies.

8. FirstService Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

FirstService Corporation operates in a highly competitive industry, and there are many substitutes available to customers. However, the company's strong brand reputation and customer loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

FirstService Corporation's customers have a high bargaining power due to the availability of substitutes and the company's dependence on a few large clients. The company needs to focus on building strong relationships with its customers to maintain its market share.

Bargaining Power Of Suppliers

FirstService Corporation has a diverse supplier base, which reduces the bargaining power of its suppliers. The company's large scale of operations also gives it negotiating power over its suppliers.

Threat Of New Entrants

The threat of new entrants is low in FirstService Corporation's industry due to the high barriers to entry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The property services industry is highly competitive, with many players competing for market share. FirstService Corporation needs to focus on differentiating itself through its service offerings and customer relationships to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.05%
Debt Cost 4.62%
Equity Weight 41.95%
Equity Cost 8.53%
WACC 6.26%
Leverage 138.35%

11. Quality Control: FirstService Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
National Health Investors

A-Score: 6.7/10

Value: 3.0

Growth: 4.3

Quality: 8.1

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
AGNC Investment

A-Score: 5.8/10

Value: 3.6

Growth: 3.2

Quality: 4.0

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
FirstService

A-Score: 5.3/10

Value: 2.8

Growth: 7.9

Quality: 5.0

Yield: 1.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
CA Immobilien

A-Score: 4.8/10

Value: 3.0

Growth: 2.3

Quality: 4.7

Yield: 8.8

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Jones Lang LaSalle

A-Score: 4.7/10

Value: 4.3

Growth: 5.2

Quality: 5.1

Yield: 0.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

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Colliers

A-Score: 4.1/10

Value: 2.6

Growth: 4.4

Quality: 3.7

Yield: 0.0

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

213.57$

Current Price

213.57$

Potential

-0.00%

Expected Cash-Flows