Stockchase Insights Firstservice Corp FSV-Q BUY ON WEAKNESS Apr 24, 2023

It is another owner operated business and puts good thought into the acquisitions it makes. It is building a national business in restoration which gives it significant more upside.

Does not know what the business does - despite stock recommendation. 
Investment based on technical analysis. 
Very strong resistant point.
Likes the look of chart. 
If stock breaks neck line - will sell.

Unique Canadian company. Low capex. Lots of free cashflow. Growth is organic and by acquisition in a fragmented industry. They acquire cheaply, and this is key. Will continue to outperform over the next several years. Still a chance to buy now.

It is a good company which provides many services such as those used by gated communities. There is still a good market available. Buy and Hold.

FSV is now trading at 27.6x times forward P/E. In the 3Q, FSV’s revenue grew 16% to $1.12B (with 10% organic growth), beating estimates of $1.07B and EPS was $1.25, slightly missing estimates of $1.27. The balance sheet is strong, with net debt of $867M and a net debt/EBITDA of 1.9x. The company pays minimal dividends and continues to reinvest heavily through acquisitions. Overall, we think this was a pretty good quarter amid a challenging operating environment, quite consistent with previous trends. We continue to see FSV as a high-quality name in the real estate service field, with solid free cash flow generation, low capex, a strong balance sheet, and a targeted annual growth rate of around 10% going forward; we like the stock.
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Longtime owner of shares in the company. Will continue to own shares - believes company still fairly valued. Recent M&A activity has been executed well. Expecting further growth in business. Good for long term investors. Strong management team. 

FSV has had a rough couple of weeks, but it appears markets or rate related mostly, as there has been no negative company nor sector news. We would be quite comfortable chipping away on the buy side, assuming a decent timeframe of holding. With earnings out, there may not be significant catalysts in the short term, unless FSV makes an acquisition, which is always a possibility.
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Shares of FSV are up 22% over the last year and revenues are expected to grow in the mid-single digits over the next two years, albeit lower than the 15% they have typically seen. However, the company has been good at finding growth through acquisitions over time and the macro backdrop isn't helping which is hard for any company to swim against. Both net margins and ROE are not far off levels they have been in the past.
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