FirstService Corporation Common Shares (FSV)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, run by capable people, at a price that gives me a margin of safety. FirstService is understandable enough: it manages residential properties and provides essential property services in the U.S. and Canada. In the second quarter of fiscal 2026, revenue was $1.4 billion and net income was $45.3 million, a 3.13% net margin. That is a thin margin, and it tells me the business must be well run to earn satisfactory profits. The FairStock-calculated returns are mixed: ROE is 11.97%, but ROCE is only 4.95%, which is not the kind of capital efficiency I associate with a wide moat. Debt-to-equity of 0.90 adds some leverage, though a FairStock-calculated Piotroski F-Score of 7/9 suggests reasonable financial footing, while the FairStock-calculated Altman Z-Score of 2.17 sits in the gray zone. Trailing twelve-month free cash flow was $335.4 million, and the FairStock-calculated FCF yield is 4.9%. That is positive, but not enough to make me forget the valuation. At the 2026-10-13 close of $130.81, the FairStock-calculated P/E is 37.16, P/B is 4.74, and EV/EBITDA is 15.17. The FairStock-calculated Graham Number is $46.75, leaving a margin of safety of -179.81%. On Graham's arithmetic, the price is far above asset-based value. The dividend yield is only 0.94%, so shareholders rely mainly on growth. Yet the latest quarter's margin is modest, and the computed Lynch category is none because there are only 0 years of filed results—need 3. I would want more evidence of durable returns and a lower price before calling this a bargain.

In plain English: FirstService manages residential properties and provides property services in the U.S. and Canada. The business is profitable and produces cash, but profit margins are thin and returns on capital look modest. At the recent price, the stock looks expensive compared with its earnings, book value, and the value a conservative buyer might assign to its assets.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer