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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 has been impacted by short-term market volatility. The company's share price has faced downward pressure, with a 7.9% decline over 30 days and a 4.8% decline over 7 days. Despite this, the company reported strong Q4 2025 earnings, with a 5% revenue increase and a 15% rise in EPS. However, investors' unease may stem from mixed short and long-term shareholder returns. The appointment of Isadora Badi as Chief Marketing Officer amid expansion could be a strategic move to drive growth.

1.c. Company Highlights

2. FirstService's Q4 Results Exceed Expectations

FirstService Corporation's fourth quarter results were modestly better than expectations, with revenues up 1% and earnings per share up 2% to $1.18, beating analyst estimates of $0.89. For the full year, revenues increased 5% to $5.5 billion, EBITDA was up 10%, and earnings per share grew 15% to $5.75. The company's residential division, FirstService Residential, reported revenues up 8% in the quarter and 7% for the full year, with EBITDA up 12% and 13%, respectively.

Publication Date: Feb -16

📋 Highlights
  • Annual Financial Growth:: FY2025 revenues rose 5% to $5.5B, EBITDA up 10%, EPS grew 15% to $5.75.
  • Residential Strength:: Residential division achieved 8% Q4 revenue growth, 12% EBITDA gain, with full-year EBITDA up 13%.
  • Cash Flow & Dividend Growth:: Operating cash flow surged 56% to $445M, supported by a 11% dividend hike to $1.22/share.
  • M&A Strategy:: Focused on tuck-under acquisitions and partnerships, maintaining 1.6x leverage with liquidity for opportunities.
  • 2026 Guidance:: Revenue growth expected in mid-single digits, EBITDA margins flat at ~10.2%, with margin expansion potential beyond 2026.

Segment Performance

The FirstService Brands division reported revenues down 3% in the quarter and EBITDA down 12%, primarily due to declines in the restoration and roofing segments. However, the company's Century Fire Protection business had a strong quarter with revenues up over 10%. The roofing segment is stabilizing, with backlog heavily weighted towards reroofing, and the company expects sequential improvement quarter to quarter and year over year growth.

Guidance and Outlook

The company expects 2026 revenue growth to be in the mid-single-digit range, with high single-digit year-over-year increases in revenue in subsequent quarters. EBITDA margin for the full year is expected to be relatively flat compared to the 10.2% annual margin reported for 2025. Analysts estimate next year's revenue growth at 6.6%. The company's guidance for flattish margins in 2026 is due to the competitive environment in roofing and migration of competitors to reroofs, putting pressure on bidding and gross margin.

Mergers and Acquisitions

The company is seeing a slower M&A market, with fewer opportunities coming to market, and is being patient in the current environment, focusing on picking the right spots and finding the right partners. The company is open to tuck-under acquisitions and partnering with founders looking to exit. Valuations remaining high in 2026 and 2027 won't change the company's approach, which focuses on solid add-ons with great leadership that fill white space or add to their service line.

Valuation

With a P/E Ratio of 34.88 and EV/EBITDA of 16.05, the market is pricing in a certain level of growth. The Dividend Yield is 0.71%, and the Free Cash Flow Yield is 4.56%. The ROE is 15.55%, indicating a relatively healthy return on equity. The Net Debt / EBITDA ratio is 2.72, indicating a manageable level of debt.

3. NewsRoom

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FirstService Announces Election of Directors

Apr -01

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FirstService Shareholders Re-Elect Directors, Approve PwC and Stock Option Plan Changes at AGM

Apr -01

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Is FirstService (TSX:FSV) Fairly Priced After Recent 21% One Year Share Price Decline

Mar -29

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FirstService Residential Unveils New King of Prussia Office

Mar -25

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FirstService Residential Marks 12th Consecutive Diamond Award Recognition

Mar -19

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Sun Sentinel Names FirstService Residential a South Florida Favorite in Inaugural Awards Program

Mar -16

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Liberty All-Star® Growth Fund, Inc. February 2026 Monthly Update

Mar -13

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FirstService Corporation Announces Upcoming Meeting and Financial Reporting Dates

Mar -11

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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: 6.8/10

Value: 2.8

Growth: 4.4

Quality: 7.6

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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AGNC Investment

A-Score: 6.0/10

Value: 4.1

Growth: 3.1

Quality: 4.0

Yield: 9.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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CA Immobilien

A-Score: 5.5/10

Value: 4.1

Growth: 2.3

Quality: 5.5

Yield: 8.8

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Jones Lang LaSalle

A-Score: 4.9/10

Value: 4.3

Growth: 5.2

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
FirstService

A-Score: 4.8/10

Value: 3.2

Growth: 7.8

Quality: 4.7

Yield: 1.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Colliers

A-Score: 4.1/10

Value: 3.0

Growth: 4.4

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 8.3

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

194.43$

Current Price

194.43$

Potential

-0.00%

Expected Cash-Flows