Last Updated 5/5/25
In a world where flashy tech tickers hog the spotlight, sometimes it’s the quieter businesses that prove to be the most reliable. FirstService Corporation (FSV) is one of those under-the-radar operators. It won’t make headlines, but it consistently gets the job done. And for dividend investors, that’s more than enough reason to pay attention.
Headquartered in Toronto but traded on the NASDAQ, FirstService delivers property services that keep residential communities running smoothly. Whether it’s managing condo buildings, fixing roofs, or providing maintenance across North America, FSV handles the sort of day-to-day needs that rarely get disrupted. This isn’t a cyclical story—it’s a recurring revenue machine built for the long haul.
Its strategy revolves around acquiring regional service businesses and scaling them under its umbrella. The beauty of this model is that it blends local know-how with corporate efficiency. More importantly, it generates dependable cash flow—exactly what dividend investors want in a portfolio holding.
Key Dividend Metrics
📈 Forward Dividend Yield: 0.62%
💵 Forward Annual Dividend Rate: $1.10
📉 Trailing Dividend Yield: 0.58%
⏳ 5-Year Average Yield: 0.53%
🧮 Payout Ratio: 35.47%
📆 Most Recent Dividend Date: April 7, 2025
⚖️ Ex-Dividend Date: March 31, 2025
A Look at the Numbers
In the most recent quarter, FSV reported 8% revenue growth, bringing its trailing twelve-month revenue to $5.31 billion. Not a blowout number, but respectable for a service-oriented business. Operating margins came in at 4.12%, which is slightly on the soft side, but still in a comfortable range for a company in this space.
Earnings did dip quite a bit, down over 55% compared to the prior year. That might raise a few eyebrows, but context matters. The company has been active with acquisitions, and those deals come with short-term costs that can drag on profits before the benefits kick in. What’s more telling is the strength of its operating cash flow, which totaled $335.72 million. Even after capital expenses and investment activity, there’s a healthy cushion to support dividends.
Small Yield, Big Reliability
Let’s be honest—the yield won’t knock your socks off. At just over half a percent, it’s not designed to deliver high income today. But this is where it’s important to distinguish between yield and total return. FirstService doesn’t just pay a dividend; it grows it. Every year, consistently. And because the payout ratio is only about 35%, there’s plenty of room for that growth to continue.
The company isn’t stretching to pay investors. Its balance sheet looks solid, and cash flow coverage for the dividend is strong. With levered free cash flow at $168 million and dividend obligations much lower, there’s no sign of strain. The dividend isn’t just sustainable—it’s comfortably so.
Growth in the Background
Since becoming a standalone company in 2015, FirstService has never cut its dividend. That’s not an accident—it’s a reflection of stable operations and a culture that understands the value of rewarding shareholders. And while the current yield may seem modest, dividend growth investors can appreciate the longer-term potential.
FirstService typically increases its dividend annually, and the trend has been steady. The most recent raise pushed the annual payout to $1.10, up from $1.02 the previous year. That kind of consistency is gold for investors who think in years, not quarters.
What About the Valuation?
One area to keep an eye on is the valuation. This stock isn’t cheap. With a forward P/E of over 30 and EV/EBITDA around 18, the market is clearly pricing in continued growth. But the premium doesn’t feel out of place for a company with this kind of predictability.
You’re paying for peace of mind, stability, and a well-run business that knows its lane and stays in it. For those looking to blend a bit of growth with dividend reliability, FSV fits neatly into that middle ground.
The Bottom Line
If you’re chasing high yields, FirstService probably isn’t for you. But if your strategy leans toward quality businesses that steadily reward shareholders and rarely miss a beat, this is a name worth watching. The dividend may be small, but it’s dependable. And over time, those steady increases can quietly add up—especially in a tax-advantaged account.
This is the kind of stock you buy, tuck away, and let do its thing. Quietly compounding, quietly growing, and quietly delivering the kind of long-term results that dividend investors are after.
Cash Flow Statement
FirstService Corporation’s trailing twelve-month cash flow paints a picture of a company that generates dependable operating income while continuing to invest heavily in growth. Over the last year, FSV produced $335.7 million in operating cash flow, marking a steady climb from prior periods. This figure reflects the strength of the company’s service-driven model, with recurring revenues translating effectively into cash. Free cash flow came in at $218.4 million, more than sufficient to support the dividend and ongoing operations.
On the investing side, outflows totaled $311.6 million, continuing the trend of aggressive capital deployment seen in prior years. A significant portion of this went to capital expenditures, which rose to $117.3 million—up from $112.8 million in 2023. Despite these heavy investments, the company maintained a stable end cash position of $240.1 million, essentially flat year over year. Financing activities were modest, generating $31.9 million, a drop from prior years when more capital was raised. Altogether, FirstService continues to self-fund its growth ambitions without overreaching, maintaining a solid balance between reinvestment and shareholder return.
Analyst Ratings
📊 FirstService Corporation (FSV) has recently caught the attention of analysts, leading to a mix of updated ratings and revised price targets based on its performance and positioning. The overall consensus currently leans toward a “Moderate Buy,” reflecting steady confidence in the company’s long-term execution and stability.
📈 TD Securities nudged its price target slightly higher from $197 to $198 while keeping its rating at “Hold.” The move reflects cautious optimism, suggesting that while FSV is executing well, analysts are waiting to see stronger growth drivers emerge before turning more bullish.
🚀 Raymond James showed greater conviction, bumping its target from $215 to $225 and reaffirming an “Outperform” rating. This signals strong belief in FirstService’s business model, particularly its ability to generate consistent cash flow and its execution in expanding service operations across North America.
⚖️ Scotiabank, on the other hand, took a more neutral stance, lowering its target from $217.50 to $210 and maintaining a “Sector Perform” rating. This more reserved view takes into account macro pressures and valuation, even as fundamentals remain solid.
📌 The current average analyst price target for FSV is around $192.63, with the range spanning from a low of $145 to a high of $225. These numbers highlight the variance in opinion but generally reinforce a stable outlook. Analysts seem to agree that while FSV isn’t a fast mover, its defensive business and reliable earnings profile make it a compelling choice for long-term investors..
Earning Report Summary
How Things Went This Past Quarter
So, looking at the first three months of 2025, FirstService Corporation seems to have done pretty well, showing they can keep things moving forward even with some bumps in the economy. They brought in a total of $1.25 billion in revenue, which is about an 8% jump compared to the same time last year. Both of their main parts, FirstService Residential and FirstService Brands, contributed to this growth.
A Closer Look at the Residential Side
FirstService Residential, which is a big player in managing communities, saw their revenue go up by 6%, hitting $525.1 million. Interestingly, about 3% of that was just from their regular business growing, showing they’re doing a good job of keeping their clients happy and bringing in new ones. Their adjusted earnings before interest, taxes, depreciation, and amortization – or Adjusted EBITDA – for this part of the business went up even more, by 17% to $41.6 million, which suggests they’re running things more efficiently.
What’s Happening with the Brands
On the FirstService Brands side, which includes a bunch of different property services, they reported $725.7 million in revenue, a 10% increase from last year. While their regular business actually saw a slight dip of 2%, they got a boost from some recent purchases they made, especially with Roofing Corp of America. Their Adjusted EBITDA here also saw a nice increase of 22% to $67.8 million, indicating they’re doing a good job of bringing these new businesses into the fold and managing their costs.
The Big Picture Numbers
Looking at the company as a whole, their total Adjusted EBITDA jumped by 24% to $103.3 million, and their Adjusted earnings per share went up by a solid 37% to $0.92. However, when you look at their net earnings based on standard accounting rules (GAAP), they actually went down to $2.8 million, or $0.06 per share, compared to $6.3 million, or $0.14 per share, last year. They said this was mainly because of higher costs related to writing off some intangible assets and the expenses of making those acquisitions.
What the CEO Had to Say
The CEO, Scott Patterson, seemed pretty happy with how things turned out. He mentioned that the strong profit margins and earnings growth were encouraging. He also pointed out that even with the economy being a bit uncertain, their teams are doing a great job of keeping things profitable. He sounded confident that their performance so far means they’re still on track to hit their goals for the whole year.
Wrapping It All Up
Overall, it looks like FirstService Corporation managed to navigate the economic landscape pretty well in the first quarter. They used strategic acquisitions and kept a focus on running things efficiently, which seems to have positioned them well for continued growth in the property services world.
Final Thoughts
FirstService Corporation (FSV) offers a compelling proposition for dividend investors who prioritize reliability and steady growth over high current yield. The company’s consistent revenue increases, strategic acquisition model, and a history of annual dividend growth underscore its stability and long-term potential. While the current yield may appear modest, the low payout ratio and consistent dividend increases suggest a healthy foundation for future growth. For investors seeking a dependable, under-the-radar company with a track record of rewarding shareholders, FSV warrants consideration as a core holding in a dividend-focused portfolio.