FSV - FirstService

[berkshire101]

FirstService was recently spun off from Colliers International so information is difficult to sort and complie, especially their free cash flow from previous years and TTM.  Any who, this is what they have on their investor's relation website.

 

Why Invest In FirstService Shares?

 

North American Property Services Leader with Two Growth Engines

- $1.1+ billion in revenues from two property services platforms

- Real estate is one of the world's largest markets creating multiple growth opportunities

- Leading brands, including FirstService Residential and FirstService Brands' seven well-known franchised service businesses.

 

FirstService Residential is North America's Largest Residential Property Manager

- 7,000 managed communities

- 1.6+ million residential units managed

- $7+ billion in client budgets

- $2.5 billion in client deposits

- Proprietary financial and energy products and services which are difficult to replicate

 

FirstService Brands is a Leader in Branded Franchised Property Services

- Seven well-known brands, each of which is the #1 or #2 player in its respective market

 

Proven Business Model

- Essential services with highly recurring revenue streams

- Partnership philosophy aligns business leaders with shareholders

- Differentiated services drive internal growth complemented by strategic acquisitions to expand service platforms

 

Strong Cash Flow & Balance Sheet

- Strong cash flows, low capital expenditures and highly variable costs

- Quarterly dividends paid on common shares

- Modest leverage

- Ample capital and liquidity to finance growth initiatives

 

Successful Track Record and Stable, Committed Executive Team

- 20% compounded annual revenue growth over 20 years

- Significant insider ownership, and executive and operating team tenure

 

Has anyone else looked at this company?  The business model appears scalable with a sticky customer base.  Their net income and free cash flow are difficult to calculate since I don't have previous financial statements.  But from my estimates, they're earning +20% ROE and +15% ROC based on free cash flow. 

 

I believe the stock is trading around 13 times FCF.  The company is growing sales and earnings at double digits.  The only thing that has me second guessing is their operating cash flow recently jumped for the previous 6 months due to some "other" items in the cash flow statement.  I couldn't find out if it was a one off thing.

[RuleOneInvestor]

Thanks for posting berkshire101. I recently started looking at FSV. They certainly have produced some compelling results. I first read about them from a VIC write-up and thought I would post a link for anyone interested. http://www.valueinvestorsclub.com/idea/FIRSTSERVICE_CORP/136822

[berkshire101]

Thanks for posting berkshire101. I recently started looking at FSV. They certainly have produced some compelling results. I first read about them from a VIC write-up and thought I would post a link for anyone interested. http://www.valueinvestorsclub.com/idea/FIRSTSERVICE_CORP/136822

 

Thanks for the write-up!  I'm combing through it now, very informative.

[Liberty]

Good write-up on FSV here (sub required):

 

https://www.scuttleblurb.com/fsv-cwd/