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Opinions James Telfser
Firstservice CorpFSVTOP PICKSep 12, 2014
James TelfserStock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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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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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.
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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, CFAPaul Harris, CFA
David BaskinGreat Canadian company. California Closets, College Pro Painters are some of their brands. The other business is the property management business. Stock trades at 28 times earnings but it is a very capital light business with no fixed assets. Generate very high free cash flows. They can grow. Very good exposure to the US. (Analysts’ price target is $94.75)
Paul Harris, CFAThis focuses on property management for condos and other multifamily units. It also has a brands division, owning California Closets and Paul Davis Restoration. The exciting part is the property management. 95% of all condos are run by themselves, and there is a big opportunity to outsource to companies like this. Feels that in 5 years this could be a double. Dividend yield of 0.7%. (Analysts' price target is $69.)
Barry Schwartz
Property management. The beauty of the business is that it is an essential service. Have been growing by acquisition globally. The organic growth has been outstanding as well. There is also the residential business where they are getting more and more scale. When you have scale in this business, you can get everything you need for less.