Is it a good company at a reasonable price? This would not be a preferred stock pick. The dividend is below 1% and I would never buy a stock with a dividend below 1%. Also, I find the ratios to be quite high. Look at the 10 year ratios for AEPS which are 25.35, 30.54 and 36.28. Generally, you would think that for this type of company a ratio above 20 would be high. However, it seems like analysts disagree and give it a Buy rating. The stock price is testing as relatively reasonable.
I do not own this stock of FirstService Corp (TSX-FSV, NASDAQ-FSV), but I used to. I bought FirstService Corp in 2002 as it looked like a good solid company that knows how to make money. By 2010 the company was underperforming so I sold the stock and kept the preferred shares until the end of the year before selling them too. Preferred shares are not by favorite why of getting dividends. Actually, the stock is done quite well after I sold.
I am happy to have sold because the dividends are paid in US$ which fluctuates against the Canadian dollar that I do my spending in. Another problem is that the dividends are generally below 1% and so lower than what I like in a stock. It is also quite a different managed company now from when I held it.
When I was updating my spreadsheet, I noticed the Chairman and Founder, Jay Steward Hennick, sold 4% of his holdings last year. He has sold off shares ever once in a while since 2019. His special shares were traded for common shares in 2018. For the other officers and directors, they are not picking up their stock options.
I am moving up my review of the stock of the November timeframe to February. At this time of the year, it is hard to find companies that have produced their results for the end of the previous year, in this case 2025.
The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at just 0.71%. The 5, 10 and historical dividend yields are also low at 0.58%, 0.62% and 0.67%. The dividend growth is moderate (8% to 14% ranges) at 10.8% per year over the past 5 years. The last dividend increase was in 2026 and it was for 11%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 34% with 5 year coverage at 31%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 19% with 5 year coverage at 18%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 12% with 5 year coverage at 13%. The DPR for 2025 for Free Cash Flow (FCF) is good at 18% with 5 year coverage at 18%. Only one company, WSJ, is giving out a FCF value and it is $444.7M in 2025.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 33.91% | 31.31% |
| AEPS | 18.70% | 18.25% |
| CFPS | 12.17% | 12.59% |
| FCF | 17.65% | 17.57% |
Debt Ratios are mostly fine, but the debt is too high. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.15 and currently at 0.16. The Liquidity Ratio for 2025 is good at 1.70 and 1.76 currently. The Debt Ratio for 2025 is good at 1.70 and 1.76 currently. The Leverage and Debt/Equity Ratios for 2025 are too high at 3.11 and 2.11 and currently at 3.27 and 2.27.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.15 | 0.16 |
| Intang/GW | 0.31 | 0.30 |
| Liquidity | 1.70 | 1.76 |
| Liq. + CF | 2.21 | 2.22 |
| Debt Ratio | 1.70 | 1.76 |
| Leverage | 3.11 | 3.27 |
| D/E Ratio | 2.11 | 2.27 |
The Total Return per year is shown below for years of 5 to 30 to the end of 2025 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 12.40% | 4.84% | 4.15% | 0.69% |
| 2015 | 10 | 10.28% | 15.31% | 14.34% | 0.98% |
| 2010 | 15 | 10.19% | 20.57% | 19.25% | 1.33% |
| 2005 | 20 | 15.02% | 14.32% | 0.69% | |
| 2000 | 25 | 15.69% | 15.11% | 0.58% | |
| 1995 | 30 | 19.73% | 19.10% | 0.63% |
The Total Return per year is shown below for years of 5 to 30 to the end of 2025 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 10.76% | 3.22% | 2.61% | 0.61% |
| 2015 | 10 | 10.39% | 15.35% | 14.42% | 0.92% |
| 2010 | 15 | 8.59% | 17.68% | 16.72% | 0.95% |
| 2005 | 20 | 14.03% | 13.46% | 0.57% | |
| 2000 | 25 | 16.31% | 15.78% | 0.53% | |
| 1995 | 30 | 19.63% | 19.09% | 0.54% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 45.48, 55.30 and 65.78. The corresponding 10 year ratios are 39.57, 52.74 and 64.86. The corresponding historical ratios are 15.59, 19.35 and 25.54. The current P/E Ratio is 40.73 based on a stock price of $210.63 and EPS estimate for 2026 of $5.17 ($3.79 US$). The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. However, these ratios are very high. This testing is in CDN$. For this sort of company, I would think a ratio higher than 20.00 was high.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 26.59, 33.89 and 39.41. The corresponding 10 year ratios are 25.35, 30.54 and 36.28. The corresponding historical ratios are 17.41, 24.48 and 32.43. The current P/AEPS Ratio is 25.02 based on a stock price of $154.65 and AEPS estimate for 2026 of $6.18. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar answer in CDN$. I think that these ratios are also quite high.
I get a Graham Price of $87.12. The 10-year low, median, and high median Price/Graham Price Ratios are 2.63, 3.23 and 4.09. The current ratio is 2.42 based on a stock price of $210.63. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$. I think that these ratios are also quite high.
I get a 10-year median Price/Book Value per Share Ratio of 8.47. The current ratio is 5.28 based on a Book Value of $1,339.5M, Book Value per Share of $29.30 and a stock price of $154.65. This ratio is 38% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar answer in CDN$. I think that these ratios are also quite high.
I also have a Book Value per Share estimate for 2026 of $33.35. This implies a ratio of 4.64 with a stock price of $154.65 and a Book Value of $1,524.5M. This ratio is 45% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar answer in CDN$. I think that these ratios are also quite high.
I get a 10-year median Price/Cash Flow per Share Ratio of 24.92. The current ratio is 16.78 based on Cash Flow per Share estimate for 2026 of $9.22, Cash Flow of $421.3M and a stock price of $154.65. This ratio is 33% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar answer in CDN$.
I get an historical median dividend yield of 0.67%. The current dividend yield is 0.71% based on dividends of $1.10 and a stock price of $154.65. The current dividend yield is 6% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. Dividends are paid in US$. You will get a similar answer in CDN$.
I get a 10 year median dividend yield of 0.62%. The current dividend yield is 0.71% based on dividends of $1.10 and a stock price of $154.65. The current dividend yield is 14% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. Dividends are paid in US$. You will get a similar answer in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 1.49. The current ratio is 1.21 based on Revenue estimate for 2026 of $5,837M, Revenue per Share of $127.69 and a stock price of $154.65. The current ratio is 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. Dividends are paid in US$. You will get a similar answer in CDN$.
Results of stock price testing is that the stock price testing as reasonable, but I find a lot of the ratios to be very high. The dividend yield testing is saying that the stock price is reasonable and below the median. This is confirmed by the P/S Ratio test. The rest of the testing is saying that the stock price is cheap or reasonable. However, I do find that the ratios are quite high, so I wonder if the stock is overvalued rather than reasonable.
When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3) and Hold (1). The consensus is a Strong Buy. The 12 month stock price consensus is $257.39 ($188.59 US$) with a high of 257.39 ($188.59 US$) and low of $257.39 ($188.59 US$). This implies a total return of 22.91% with 22.20% from capital gains and 0.71% from dividends. (There are 9 analysts’ consensus for this stock, but there appears to be only 1 target price given.)
Analysts on Stock Chase like this stock, but some say it is always too expensive. Robin Brown on Motley Fool thinks that this stock may surge in 2026. Kay Ng on Motley Fool thinks that this stock is undervalued. The company put out a press release via Global Newswire about their fourth quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock and gives its pros and cons. Simply Wall Street via Yahoo Finance talks how investors react to the company’s earnings beat and 11% dividend increase.
FirstService Corp operates in two business divisions: FirstService Residential and FirstService Brands. The company earns the majority of its revenue in the United States, with the remaining revenue generated in Canada. Its web site is here FirstService Corp.
The last stock I wrote about was about was ARC Resources Ltd (TSX-ARX, OTC-AETUF) ... learn more. The next stock I will write about will be Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more on Monday, February 16, 2026 around 5 pm. Tomorrow on my other blog I will write about Gen Z Guide to Negotiating.... learn more on Tuesday, February 17, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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