FirstService Corporation
FirstService Corporation Fundamental Analysis
FirstService Corporation (FSV.TO) shows moderate financial fundamentals with a PE ratio of 43.35, profit margin of 2.65%, and ROE of 11.33%. The company generates $5.6B in annual revenue with strong year-over-year growth of 20.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FSV.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakFSV.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakFSV.TO trades at a premium to fair value.
Growth Score
ModerateFSV.TO shows steady but slowing expansion.
Financial Health Score
ModerateFSV.TO shows balanced financial health with some risks.
Profitability Score
WeakFSV.TO struggles to sustain strong margins.
Key Financial Metrics
Is FSV.TO Expensive or Cheap?
P/E Ratio
FSV.TO trades at 43.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FSV.TO's PEG of 12.29 indicates potential overvaluation.
Price to Book
The market values FirstService Corporation at 4.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.67 times EBITDA. This is generally considered low.
How Well Does FSV.TO Make Money?
Net Profit Margin
For every $100 in sales, FirstService Corporation keeps $2.65 as profit after all expenses.
Operating Margin
Core operations generate 6.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.33 in profit for every $100 of shareholder equity.
ROA
FirstService Corporation generates $3.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
FirstService Corporation generates limited operating cash flow of $453.25M, signaling weaker underlying cash strength.
Free Cash Flow
FirstService Corporation produces free cash flow of $324.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.05 in free cash annually.
FCF Yield
FSV.TO converts 5.05% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
15.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How FSV.TO Stacks Against Its Sector Peers
| Metric | FSV.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.35 | 22.30 | Worse (Expensive) |
| ROE | 11.33% | 718.00% | Weak |
| Net Margin | 2.65% | -37395.00% (disorted) | Weak |
| Debt/Equity | 1.01 | -20.81 (disorted) | Distorted |
| Current Ratio | 15.15 | 1949.84 | Strong Liquidity |
| ROA | 3.42% | -1450.00% (disorted) | Weak |
FSV.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews FirstService Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
84.00%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
150.12%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
125.00%
Industry Style: Income, Inflation Hedge, REIT
High Growth