Wednesday, June 18, 2008

FirstService Corp Spreadsheet

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional.

Looking over the spreadsheet I have, I can see that the revenue is growing nicely. The Earnings per Share (EPS) can fluctuate on this stock and there does not seem to be any consensus on what it will do for earnings in 2009. I usually concentrate on the actual earnings, but others are looking at earnings on continuing operations or excluding usual items etc. 2008 has not been a good year for this company for earnings.

You will also note that this company has done much better in US currency than in CDN currency. It is an international company, doing business in North and South America, Europe, Asia, Australia and New Zealand, so it is reporting in US$. However, it still has not done badly in CDN currency.

Past growth has been good in revenue, earnings and price appreciation. The debt load has been a little higher than what I would like. There has been good growth in book value and cash flow. The Accrual Ratio is high, but it has in the past, not been a good predictor of what the share price will do. In 2008, the Operational Cash Flow is a lot higher than the Net Income and this is good.

At the present time, I am holding on to my shares, as I think that the market has overreacted. I will look at this again once we have some quarterly earnings in. The only change in this stock is that it had an earning loss for the quarter ending March 31, 2008; this is why EPS was down for the year ending in March 31, 2008. However, they are in Real Estate in US, an industry that is in some trouble. It is not unexpected that the market will punish all company in a troubled sector, no matter what their long term prospects are.

See my spreadsheet at See my website at

This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management, and property services. It is an international company as noted above.

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