Opinions Stockchase Insights
Firstservice CorpFSVBUYOct 27, 2023
Stockchase InsightsStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
You might be interested:
It was on their short list for top pick. It is down because growth rates have declined but they will go back up again. It is North America's largest property manager. The other half is its business servicing companies that service buildings eg. roof repair,etc. This makes it less sensitive to the economic environment. It is a buying opportunity since it has done well for a long time. It grows in the single digits but acquisitions move it back into double digits.
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.
Unlock Premium - Try 5i Free
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.
Unlock Premium - Try 5i Free
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.
James Telfser
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.
Paul Harris, CFAService excellence culture drives customer retention, repeat business and word-of-mouth referral and our high single-digit organic growth for the quarter and year-to-date is a reflection of that.
Total revenues for the quarter were up 13% over the prior year with organic revenue growth at 8%, balanced about evenly between our 2 divisions, EBITDA for the quarter was $95.5 million, up modestly from 2021, reflecting a margin of 9.9% compared to 11.1% in the prior year.
Unlock Premium - Try 5i Free
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.
Keith RichardsIt 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.
Barry SchwartzTrevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Reliable track record of growth gives comfort. Essential services revenue provides resilience. Premium valuation continues to be justified. Unlock Premium - Try 5i Free
Potential to improve margins. Proven, disciplined acquisition strategy. Low CapEx and working capital requirements. Conservative balance sheet. Unlock Premium - Try 5i Free
Paul Harris, CFAPaul Harris, CFA
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.
Unlock Premium - Try 5i Free