FSV

FirstService is a property-services compounder with a long record of steady, acquisition-led growth. Revenue has expanded every year from $3.25B in FY2021 to $5.50B in FY2025 (+5.4% YoY), and net income rose to $191M (+1.6%) with diluted EPS up 6.7% to $3.17. The business earns a respectable 13.9% return on equity, and the standout this year was cash generation: operating cash flow jumped 56.1% to $446M, comfortably funding $128M of capex and a growing $48.9M dividend (+11.5%). Stockholders' equity grew 15.8% to $1.38B, reflecting solid underlying value creation.

The business is, however, structurally low-margin: operating margin is just 6.1% and net margin 3.5%, typical of a labor- and service-intensive property-services model where scale and tuck-in acquisitions, rather than pricing power, drive growth. The five-year history shows revenue compounding faster than net income, meaning margins have been broadly flat as the company invests in expansion.