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FirstService

TSX:FSV
Snowflake Description

High growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FSV
TSX
CA$4B
Market Cap
  1. Home
  2. CA
  3. Real Estate
Company description

FirstService Corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the United States and Canada. The last earnings update was 43 days ago. More info.


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  • FirstService has significant price volatility in the past 3 months.
FSV Share Price and Events
7 Day Returns
-9.1%
TSX:FSV
-1.2%
CA Real Estate
1%
CA Market
1 Year Returns
-14.9%
TSX:FSV
-9.1%
CA Real Estate
-23.3%
CA Market
FSV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
FirstService (FSV) -9.1% -27.2% -18.5% -14.9% 23.2% -
CA Real Estate -1.2% -23.2% -19.5% -9.1% 5.2% 6.7%
CA Market 1% -19.9% -23.8% -23.3% -20.9% -15%
1 Year Return vs Industry and Market
  • FSV underperformed the Real Estate industry which returned -9.1% over the past year.
  • FSV outperformed the Market in Canada which returned -23.3% over the past year.
Price Volatility
FSV
Industry
5yr Volatility vs Market

Value

 Is FirstService undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of FirstService to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for FirstService.

TSX:FSV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:FSV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.98 (1 + (1- 26.5%) (30.97%))
1.136
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (1.136 * 5.44%)
7.62%

Discounted Cash Flow Calculation for TSX:FSV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for FirstService is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:FSV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.62%)
2020 102.53 Analyst x5 95.28
2021 126.36 Analyst x5 109.10
2022 143.85 Est @ 13.85% 115.41
2023 158.42 Est @ 10.12% 118.10
2024 170.33 Est @ 7.52% 117.99
2025 180.03 Est @ 5.7% 115.88
2026 187.98 Est @ 4.42% 112.43
2027 194.61 Est @ 3.53% 108.15
2028 200.25 Est @ 2.9% 103.41
2029 205.18 Est @ 2.46% 98.46
Present value of next 10 years cash flows $1,094.00
TSX:FSV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $205.18 × (1 + 1.44%) ÷ (7.62% – 1.44%)
$3,368.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,368.33 ÷ (1 + 7.62%)10
$1,616.28
TSX:FSV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,094.00 + $1,616.28
$2,710.28
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,710.28 / 41.61
$65.14
TSX:FSV Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:FSV)
1.421
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $65.14 x 1.421
CA$92.54
Value per share (CAD) From above. CA$92.54
Current discount Discount to share price of CA$100.16
= -1 x (CA$100.16 - CA$92.54) / CA$92.54
-8.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of FirstService is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for FirstService's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are FirstService's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:FSV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-6.58
TSX:FSV Share Price ** TSX (2020-04-02) in CAD CA$100.16
TSX:FSV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.704 $70.5
Canada Real Estate Industry PE Ratio Median Figure of 20 Publicly-Listed Real Estate Companies 10.57x
Canada Market PE Ratio Median Figure of 499 Publicly-Listed Companies 10.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of FirstService.

TSX:FSV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:FSV Share Price ÷ EPS (both in USD)

= 70.5 ÷ -6.58

-10.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstService is loss making, we can't compare its value to the CA Real Estate industry average.
  • FirstService is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does FirstService's expected growth come at a high price?
Raw Data
TSX:FSV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -10.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
125.2%per year
North America Real Estate Industry PEG Ratio Median Figure of 14 Publicly-Listed Real Estate Companies 0.6x
Canada Market PEG Ratio Median Figure of 232 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for FirstService, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on FirstService's assets?
Raw Data
TSX:FSV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $10.26
TSX:FSV Share Price * TSX (2020-04-02) in CAD CA$100.16
TSX:FSV Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.704 $70.5
Canada Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 0.62x
Canada Market PB Ratio Median Figure of 2,355 Publicly-Listed Companies 0.99x
TSX:FSV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:FSV Share Price ÷ Book Value per Share (both in USD)

= 70.5 ÷ 10.26

6.87x

* Primary Listing of FirstService.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstService is overvalued based on assets compared to the CA Real Estate industry average.
X
Value checks
We assess FirstService's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. FirstService has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is FirstService expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
125.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is FirstService expected to grow at an attractive rate?
  • FirstService's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • FirstService's earnings growth is expected to exceed the Canada market average.
  • FirstService's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:FSV Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:FSV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 125.2%
TSX:FSV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 9.9%
North America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 22.7%
Canada Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:FSV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:FSV Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,936 193 79 8
2020-12-31 2,669 172 65 8
TSX:FSV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 2,407 108 -252
2019-09-30 2,235 83 -246
2019-06-30 2,069 96 -240
2019-03-31 1,991 117 62
2018-12-31 1,931 99 66
2018-09-30 1,872 121 69
2018-06-30 1,829 114 58
2018-03-31 1,775 116 53
2017-12-31 1,729 116 51
2017-09-30 1,667 96 44
2017-06-30 1,612 118 45
2017-03-31 1,556 115 40

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • FirstService's earnings are expected to grow significantly at over 20% yearly.
  • FirstService's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:FSV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from FirstService Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FSV Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.91 1.96 1.85 2.00
2020-12-31 1.57 1.68 1.46 2.00
TSX:FSV Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -6.58
2019-09-30 -6.67
2019-06-30 -6.66
2019-03-31 1.73
2018-12-31 1.83
2018-09-30 1.91
2018-06-30 1.61
2018-03-31 1.48
2017-12-31 1.43
2017-09-30 1.23
2017-06-30 1.25
2017-03-31 1.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • FirstService is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess FirstService's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
FirstService has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has FirstService performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare FirstService's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • FirstService does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare FirstService's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare FirstService's 1-year growth to the CA Real Estate industry average as it is not currently profitable.
Earnings and Revenue History
FirstService's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from FirstService Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:FSV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,407.41 -251.61 546.26
2019-09-30 2,235.13 -245.51 494.47
2019-06-30 2,069.23 -239.53 454.40
2019-03-31 1,990.67 62.11 440.52
2018-12-31 1,931.47 65.87 426.38
2018-09-30 1,871.80 68.53 425.09
2018-06-30 1,828.82 57.83 414.58
2018-03-31 1,775.14 53.24 400.19
2017-12-31 1,729.03 51.45 385.04
2017-09-30 1,666.51 44.24 359.92
2017-06-30 1,612.21 44.86 335.90
2017-03-31 1,555.65 39.55 321.25
2016-12-31 1,482.89 33.60 305.22
2016-09-30 1,417.89 30.08 295.85
2016-06-30 1,358.33 28.38 295.14
2016-03-31 1,299.47 23.05 286.34
2015-12-31 1,264.08 21.40 279.24
2015-09-30 1,230.14 14.53 273.88
2015-06-30 1,192.64 9.07 272.26
2015-03-31 1,158.60 10.85 265.57
2014-12-31 1,132.00 12.97 258.68
2013-12-31 1,038.09 3.20 229.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if FirstService has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if FirstService has efficiently used its assets last year compared to the CA Real Estate industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if FirstService improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess FirstService's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
FirstService has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is FirstService's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up FirstService's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • FirstService is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • FirstService's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of FirstService's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from FirstService Company Filings, last reported 3 months ago.

TSX:FSV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 600.55 756.47 121.20
2019-09-30 387.11 940.10 106.28
2019-06-30 367.20 915.17 89.83
2019-03-31 378.87 377.32 69.63
2018-12-31 387.81 334.52 66.34
2018-09-30 376.08 326.51 75.52
2018-06-30 347.85 309.48 57.69
2018-03-31 319.32 317.24 58.70
2017-12-31 309.99 269.63 57.19
2017-09-30 303.44 292.34 62.21
2017-06-30 297.91 279.07 63.09
2017-03-31 279.10 282.86 45.68
2016-12-31 283.38 250.91 43.38
2016-09-30 280.44 242.47 49.18
2016-06-30 261.89 259.67 36.29
2016-03-31 244.65 210.09 37.08
2015-12-31 244.59 201.20 45.56
2015-09-30 244.75 198.60 49.61
2015-06-30 221.78 222.09 51.84
2015-03-31 197.84 246.97 45.14
2014-12-31 239.68 239.36 66.79
2013-12-31 250.07 225.43 86.37
  • FirstService's level of debt (126%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (100.1% vs 126% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making FirstService has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making FirstService has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -8.2% per year.
X
Financial health checks
We assess FirstService's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. FirstService has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is FirstService's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.94%
Current annual income from FirstService dividends. Estimated to be 0.95% next year.
If you bought CA$2,000 of FirstService shares you are expected to receive CA$19 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • FirstService's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.67%).
  • FirstService's dividend is below the markets top 25% of dividend payers in Canada (8.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:FSV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Canada Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 4.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:FSV Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.70 2.00
2020-12-31 0.65 2.00
TSX:FSV Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-04 0.660 0.728
2019-12-03 0.600 0.628
2019-09-11 0.600 0.624
2019-05-22 0.600 0.607
2019-02-05 0.600 0.691
2018-12-04 0.540 0.736
2018-09-12 0.540 0.692
2018-05-15 0.540 0.691
2018-02-06 0.540 0.769
2017-12-06 0.490 0.720
2017-09-12 0.490 0.718
2017-05-15 0.490 0.764
2017-02-09 0.490 0.834
2016-12-06 0.440 0.913
2016-09-16 0.440 1.014
2016-05-17 0.440 0.937
2016-02-09 0.440 1.068
2015-12-10 0.400 1.072
2015-09-18 0.400 1.131
2015-06-18 0.400 1.339

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • FirstService is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • FirstService is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of FirstService's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of FirstService's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of FirstService's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess FirstService's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can FirstService afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. FirstService has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of FirstService's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
D. Patterson
COMPENSATION $4,514,000
AGE 58
TENURE AS CEO 4.8 years
CEO Bio

Mr. D. Scott Patterson has been the Chief Executive Officer of FirstService Corporation since June 1, 2015 and served as its President and Chief Operating Officer from 2003 to 2015. Mr. Patterson is responsible for the execution of the FirstService operating strategy and manages the strategic planning process, operating management effectiveness and best practices, all focused on driving internal growth in the business units. He joined FirstService in 1994 as Vice President of Corporate Development and was responsible for executing the acquisition strategy. Mr. Patterson served as the President of FirstService Corporation since September 2003 until June 1, 2015 and served as its Chief Operating Officer from September 2003 to June 1, 2015. He served as an Executive Vice President of FirstService Corporation from 1995 to September 2005 and served as its President of the Business Services Group Division from September 2002 to September 2005. He served as Senior Vice President and Chief Financial Officer of FirstService Corp. from 1995 to 2003. Prior to FirstService, he served as a Vice President of Bankers Trust, where he involved in the execution of merger, acquisition, divestiture and financing transactions in Toronto. Mr. Patterson joined Old FSV in 1994 as Vice President of Corporate Development and soon thereafter became Chief Financial Officer from February 1995 until September 2003. He has been a Non-Independent Director of FirstService Corporation since June 1, 2015. He has been an Independent Director of Laramide Resources Ltd. since June 21, 1995. He serves as a Member of Advisory Board at ShiftCentral Inc. He achieved his designation as a Chartered Professional Accountant in 1985 and began his career at PriceWaterhouse. In 2008, he designated as a LEED AP. In 2007, he was named as Chief Operating Officer of the year by Canadian Business Magazine. He has a BA in Business Administration from the University Of Western Ontario in Business Administration.

CEO Compensation
  • D.'s compensation has increased whilst company is loss making.
  • D.'s remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the FirstService management team in years:

4.8
Average Tenure
58
Average Age
  • The tenure for the FirstService management team is about average.
Management Team

Jay Hennick

TITLE
Founder & Chairman of the Board
COMPENSATION
$184K
AGE
62
TENURE
32.3 yrs

D. Patterson

TITLE
President
COMPENSATION
$5M
AGE
58
TENURE
4.8 yrs

Jeremy Rakusin

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
50
TENURE
4.8 yrs

Alex Nguyen

TITLE
Senior Vice President of Strategy & Corporate Development
COMPENSATION
$1M
AGE
36
TENURE
4.8 yrs

Doug Cooke

TITLE
Senior VP
COMPENSATION
$1M
AGE
59
TENURE
4.8 yrs

Charlie Chase

TITLE
CEO & President of FirstService Brands
AGE
58
TENURE
10.3 yrs

Chuck Fallon

TITLE
Chief Executive Officer of FirstService Residential
COMPENSATION
$2M
AGE
56
TENURE
7 yrs
Board of Directors Tenure

Average tenure and age of the FirstService board of directors in years:

4.8
Average Tenure
64.5
Average Age
  • The tenure for the FirstService board of directors is about average.
Board of Directors

D. Patterson

TITLE
President
COMPENSATION
$5M
AGE
58
TENURE
4.8 yrs

Brendan Calder

TITLE
Independent Director
COMPENSATION
$282K
AGE
72
TENURE
4.8 yrs

Jay Hennick

TITLE
Founder & Chairman of the Board
COMPENSATION
$184K
AGE
62
TENURE
4.8 yrs

Michael Stein

TITLE
Independent Director
COMPENSATION
$288K
AGE
68
TENURE
4.8 yrs

Joan Sproul

TITLE
Independent Director
COMPENSATION
$285K
AGE
62
TENURE
1.9 yrs

Bernard Ghert

TITLE
Lead Independent Director
COMPENSATION
$316K
AGE
79
TENURE
4.8 yrs

Fred Reichheld

TITLE
Independent Director
COMPENSATION
$276K
AGE
67
TENURE
4.8 yrs

Erin Wallace

TITLE
Independent Director
COMPENSATION
$276K
AGE
59
TENURE
4.5 yrs
Who owns this company?
Recent Insider Trading
  • Information is not available.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
26. Mar 20 Sell Erin Wallace Individual 14. Feb 20 14. Feb 20 -10,000 CA$148.15 CA$-1,479,552
23. Mar 20 Buy Frederick Reichheld Individual 23. Mar 20 23. Mar 20 10,000 CA$86.54 CA$861,738
30. Sep 19 Buy Erin Wallace Individual 18. Sep 19 18. Sep 19 400 CA$135.47 CA$54,189
22. Aug 19 Sell Brendan Calder Individual 22. Aug 19 22. Aug 19 -1,800 CA$135.92 CA$-244,656
29. Jul 19 Sell Michael Natale Individual 29. Jul 19 29. Jul 19 -500 CA$138.50 CA$-69,250
06. Jun 19 Sell Kevin Roy Individual 05. Jun 19 05. Jun 19 -2,000 CA$125.00 CA$-249,500
X
Management checks
We assess FirstService's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. FirstService has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Brendan Calder Is The Independent Director of FirstService Corporation (TSE:FSV) And They Just Sold 35.4% Of Their Shares

See our latest analysis for FirstService The Last 12 Months Of Insider Transactions At FirstService In the last twelve months, the biggest single sale by an insider was when the Senior VP, Douglas Cooke, sold CA$2.1m worth of shares at a price of CA$112 per share. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Over the last year we saw more insider selling of FirstService shares, than buying.

Simply Wall St -

Don't Ignore The Fact That This Insider Just Sold Some Shares In FirstService Corporation (TSE:FSV)

See our latest analysis for FirstService The Last 12 Months Of Insider Transactions At FirstService Over the last year, we can see that the biggest insider sale was by the Senior VP, Douglas Cooke, for CA$2.1m worth of shares, at about CA$112 per share. … Over the last year we saw more insider selling of FirstService shares, than buying. … While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company.

Simply Wall St -

Do Insiders Own Shares In FirstService Corporation (TSE:FSV)?

See our latest analysis for FirstService TSX:FSV Ownership Summary, July 23rd 2019 What Does The Institutional Ownership Tell Us About FirstService? … Insider Ownership Of FirstService The definition of company insiders can be subjective, and does vary between jurisdictions. … Our information suggests that insiders maintain a significant holding in FirstService Corporation.

Simply Wall St -

Why FirstService Corporation's (TSE:FSV) CEO Pay Matters To You

According to our data, FirstService Corporation has a market capitalization of CA$5.0b, and pays its CEO total annual compensation worth US$4.0m. … We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$3.0m. … Patterson receives more in total compensation than the median of a group of companies in the same market, and of similar size to FirstService Corporation.

Simply Wall St -

Is FirstService Corporation (TSE:FSV) Expensive For A Reason? A Look At Its Intrinsic Value

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $114.49 $129.65 $131.00 $156.00 $173.00 $186.53 $197.84 $207.39 $215.60 $222.84 Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x1 Analyst x1 Analyst x1 Est @ 7.82% Est @ 6.06% Est @ 4.83% Est @ 3.96% Est @ 3.36% Present Value ($, Millions) Discounted @ 8.43% $105.59 $110.28 $102.77 $112.87 $115.44 $114.79 $112.29 $108.56 $104.09 $99.22 Present Value of 10-year Cash Flow (PVCF)= $1.09b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … TSX:FSV Intrinsic value, June 27th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Does FirstService Corporation's (TSE:FSV) Debt Level Pose A Problem?

This article will examine FSV’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Moreover, FSV has produced US$117m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 24%, indicating that FSV’s current level of operating cash is high enough to cover debt. … Looking at FSV’s US$244m in current liabilities, the company has been able to meet these commitments with a current assets level of US$417m, leading to a 1.71x current account ratio.

Simply Wall St -

If You Had Bought FirstService (TSE:FSV) Shares Three Years Ago You'd Have Made 105%

For instance the FirstService Corporation (TSE:FSV) share price is 105% higher than it was three years ago. … FirstService was able to grow its EPS at 39% per year over three years, sending the share price higher. … We note that for FirstService the TSR over the last 3 years was 110%, which is better than the share price return mentioned above.

Simply Wall St -

Need To Know: FirstService Corporation (TSE:FSV) Insiders Have Been Selling Shares

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' See our latest analysis for FirstService The Last 12 Months Of Insider Transactions At FirstService In the last twelve months, the biggest single sale by an insider was when the Senior VP, Douglas Cooke, sold CA$2.1m worth of shares at a price of CA$112 per share. … Over the last year we saw more insider selling of FirstService shares, than buying. … Insider Ownership of FirstService I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Can FirstService Corporation's (TSE:FSV) ROE Continue To Surpass The Industry Average?

This article is for those who would like to learn about Return On Equity (ROE). … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.24. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Now The Time To Look At Buying FirstService Corporation (TSE:FSV)?

led the TSX gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at FirstService’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Company Info

Description

FirstService Corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the United States and Canada. The company operates through two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment provides 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 offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 18 California Closets locations and 9 Paul Davis Restoration locations. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, and Century Fire Protection brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada.

Details
Name: FirstService Corporation
FSV
Exchange: TSX
Founded: 1988
CA$4,167,282,701
41,606,257
Website: http://www.firstservice.com
Address: FirstService Corporation
1140 Bay Street,
Suite 4000,
Toronto,
Ontario, M5S 2B4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX FSV Common Shares The Toronto Stock Exchange CA CAD 02. Jun 2015
NasdaqGS FSV Common Shares Nasdaq Global Select US USD 02. Jun 2015
BST 1GIA Common Shares Boerse-Stuttgart DE EUR 02. Jun 2015
Number of employees
Current staff
Staff numbers
24,000
FirstService employees.
Industry
Real Estate Services
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 02:53
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.