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Opinions John Kim
Firstservice CorpFSV.TOBUYJun 21, 2019
John KimStock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Compounded revenues at 19% a year for the last 5 years, part organic and part acquisition. Loves this type of company. Recent acquisition of US roofing company gives it another vertical. In property management, restorations, home renovations. Not cheap and never will be. Quite attractive here.
Barry SchwartzA great Canadian company. A low capex business that grows organically and through tuck-in acquisitions. They execute very well. Definitely buy on pullbacks.
Paul Harris, CFAIt is involved in property management and franchise divisions. It is one of the largest players in the property management side and is also large in the U.S. It can grow by acquisitions and is good at integrating them.
Paul Harris, CFALow capex, lots of free cashflow. Small market share, but lots of opportunity for acquisitions, which they're very good at. Contracts have inflation escalation built-in. Customers are locked into 3-5 year contracts.
Paul Harris, CFAEconomies of scale. Market leader. Serial acquirer and compounder. Near recession-proof. Inflation-protected contracts. With more damage from climate change events, building a juggernaut restoration service, which has the potential to be a national player. Still small market share. Not cheap, never will be. Still in early innings. Yield is 0.63%.
(Analysts’ price target is $220.83)Barry SchwartzOne of the leaders in the business, but still represents only a small market share. Lots of room to grow. Inflation-protected contracts. Light capex. Incredibly well run.
Paul Harris, CFARecently broke out, so it looks good. Thinks it can get back to the old level around $230. Plenty of upside from where it is now around $200. Chart's done a cup formation and a handle, and now it's breaking out. He plans to hold a little while longer.
Keith RichardsValuation isn't super-cheap, but has checked back to an attractive level. Property management plus various brand-name services. One interesting division is Century Fire, which checks fire extinguishers. Grows by acquisition, funded by free cashflow. Yield is 0.64%.
(Analysts’ price target is $207.82)
James Telfser
Low capex business. Lots of free cashflow. Always trades at higher multiples, but great to buy at these levels. Executes incredibly well. Disciplined acquisitions.
Paul Harris, CFAPaul Harris, CFA
Paul Harris, CFAPaul Harris, CFA
FSV vs. CIGI He prefers First Service, which is less volatile and more sustainable. Colliers just let go of their head of real estate for misbehaviour, so there's management turmoil. In a recession, Colliers will get hit harder, because there will be fewer transactions in commercial real estate, which is Colliers' business.