FIRSTSERVICE CORP. $30.90 - Toronto symbol FSV

FIRSTSERVICE CORP. $30.90 (Toronto symbol FSV; TSINetwork Rating: Extra Risk) (416-960-9500; www.firstservice.com; Shares outstanding: 28.6 million; Market cap: $883.7 million; No dividends paid) serves the following areas of the real estate market: commercial real estate, residential property management and property improvement.

In the three months ended December 31, 2011, the company’s revenue rose 7.8%, to $594.9 million from $552.1 million a year earlier (all figures except share prices in U.S. dollars). Excluding one-time items, earnings per share rose 40.5%, to $0.52 from $0.37.

The company’s $316.4-million debt is a manageable 35.8% of its $883.7-million market cap.

FirstService needs a sustained recovery in global real estate markets for its shares to continue to move higher. Meanwhile, the stock trades at 16.3 times this year’s forecast earnings of $1.90 a share.

FirstService is a hold.

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