Considering a Growth Stock? Here are 3 Reasons Why FirstService (FSV) is a Strong Option
Growth Investing Overview: Growth investors seek stocks with above-average financial growth, but identifying stocks that can sustain this growth is challenging due to inherent volatility and risk.
FirstService as a Growth Stock: FirstService (FSV) is highlighted as a strong growth stock, boasting a favorable Growth Score and a Zacks Rank of #2, with projected earnings growth of 17.4% this year, significantly outpacing the industry average.
Cash Flow and Earnings Trends: The company shows impressive cash flow growth at 17% year-over-year and a historical annualized cash flow growth rate of 31%, alongside positive trends in earnings estimate revisions, indicating strong future performance.
Investment Recommendations: Zacks experts recommend FirstService as a promising investment, suggesting it could outperform the market, and encourage investors to consider their top stock picks for significant returns in the near future.
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- Coverage Gap Addressed: FirstService Residential's new resident insurance solution aims to close the insurance coverage gap, as studies indicate that about two-thirds of homes nationwide may be underinsured, leading to extra costs and frustrations for residents during claims, which can also affect neighbors.
- Convenient Insurance Options: Through a partnership with VIU by HUB, residents can compare quotes from over 50 top national insurers on a single platform, simplifying the insurance decision-making process and enhancing residents' convenience.
- Neutral Professional Advice: VIU by HUB's licensed advisors provide quick quotes and expert guidance, ensuring residents receive tailored insurance solutions based on their needs, thereby improving the overall protection level within the community.
- Positive Community Impact: By launching this new program, FirstService Residential demonstrates proactive thinking in protecting residents, helping them and their neighbors better address potential underinsurance issues, which enhances community safety and satisfaction.
- Investment Strategy Overview: The Liberty All-Star Growth Fund employs an all-cap growth investment style, combining three investment managers with distinct capitalization focuses—small, mid, and large-cap—to ensure portfolio diversity and risk management.
- Monthly Performance Data: As of the end of January, the fund's net asset value (NAV) stood at $5.77, with a market price of $5.25, reflecting a 9.0% discount; however, the monthly performance rebounded by 0.71%, indicating the impact of market fluctuations.
- Portfolio Changes: New holdings include companies like Arista Networks and Expedia, while positions in AMD and Bank of America were liquidated, demonstrating the fund's strategy of dynamically adjusting its portfolio to adapt to market changes.
- Sector Distribution Analysis: The fund's portfolio shows a significant concentration in high-growth sectors, with Information Technology and Industrials comprising 26.7% and 25.4% respectively, indicating a strategic focus on capturing future growth opportunities in these industries.
- Earnings Growth: FirstService Corp. reported fourth-quarter earnings of $50.349 million, translating to $0.85 per share, which marks a significant increase from last year's $50.179 million and $0.71 per share, indicating robust market performance.
- Adjusted Earnings: Excluding items, the company posted adjusted earnings of $62.566 million or $1.37 per share, showcasing strong profitability in its core operations and further boosting investor confidence.
- Revenue Increase: The revenue for the fourth quarter rose by 1.3% to $1.383 billion compared to $1.365 billion last year, demonstrating the company's ability to maintain stable revenue growth in a competitive market environment.
- Financial Health: The overall improvement in financial performance not only enhances the company's profitability but also provides a solid foundation for future investments and expansion, strengthening its competitive position in the industry.
- Earnings Beat: FirstService reported a Q4 Non-GAAP EPS of $1.37, exceeding expectations by $0.05, which reflects the company's ongoing profitability and strengthens investor confidence.
- Revenue Growth: The company achieved Q4 revenue of $1.38 billion, a 0.7% year-over-year increase, surpassing expectations by $20 million, indicating its ability to maintain stable revenue growth in a competitive market.
- Stable Adjusted EBITDA: Adjusted EBITDA stood at $137.6 million, consistent with Q4 2024, demonstrating effective cost control and operational efficiency, which helps sustain profitability.
- Positive Market Reaction: Given the earnings report exceeded expectations, FirstService's stock price is likely to experience a positive impact, further attracting investor interest and enhancing market confidence in its future growth potential.
- Quarterly Revenue Growth: FirstService Corporation reported fourth-quarter revenues of $1.38 billion for 2025, reflecting a 1% year-over-year increase, indicating stable market performance that is likely to boost investor confidence.
- Annual Performance Improvement: The company achieved total revenues of $5.50 billion for the year ended December 31, 2025, a 5% increase from the previous year, primarily driven by recent tuck-under acquisitions, showcasing successful market share expansion strategies.
- Adjusted EBITDA Growth: For 2025, adjusted EBITDA reached $562.8 million, up 10% year-over-year, highlighting ongoing improvements in operational efficiency and cost control that enhance profitability.
- Significant EPS Increase: The adjusted earnings per share for 2025 was $5.75, a 15% increase compared to the prior year, which not only boosts shareholder returns but also lays a solid foundation for future investments.

- Dividend Increase: FirstService Corporation has declared a quarterly dividend of $0.305 per share, marking a 10.9% increase from the previous dividend of $0.275, which underscores the company's ongoing profitability and commitment to shareholder returns.
- Yield Information: The forward yield of this dividend stands at 0.59%, reflecting the company's stability and attractiveness in the current market environment, potentially drawing more investor interest.
- Payment Schedule: The dividend is payable on April 7, with a record date of March 31 and an ex-dividend date also set for March 31, providing shareholders with a clear timeline for investment decisions.
- Financial Transparency: FirstService Corporation offers detailed dividend scorecards and historical earnings data, enhancing investor confidence in the company's financial health and further stimulating market interest in its stock.







