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Canada’s home sales rose to record levels through the coronavirus pandemic last year. The Canadian Real Estate Association (CREA) reported that in the first 11 months of 2020, the country’s saw 511,449 home sales over the Canadian MLS® Systems, a 10.5 per cent YoY increase. However, many experts have voiced their concerns regarding the increasing housing demand and real estate prices amid the pandemic times, often describing it as a “bubble”.
As far as stocks go, while the S&P/TSX Capped Real Estate Index is down 0.34 per cent year-to-date (YTD), there are some real estate stocks that have posted a steady increase in the last three to six months on the TSX, such as FirstService Corporation (TSX:FSV) and Colliers International Group Inc. (TSX:CIGI).
Let’s take a closer look at the profiles of these two real estate stocks.
FirstService Corporation (TSX:FSV)
Current Stock Price: C$ 171.94
Stocks of Toronto-based FirstService Corporation jumped by almost 25 per cent in the last six months and by about 40 per cent in 2020. Since their stock market debut in 2015, the shares soared by over 412 per cent.
The C$ 7.4-billion market cap company registers a price-to-book (P/B) ratio of 9.2, while its price-to-cash flow (P/CF) ratio stands at 24.8, as per the data on TMX Group. Its return on equity (ROE) is 16.24 per cent and return on assets (ROA) is 3.51 per cent.
The Canadian real estate company reported a 10 per cent year-over-year (YoY) increase in its total revenues of US$ 741.9 million in the third quarter ending 30 September 2020. Its adjusted EBITDA climbed by 15 per cent YoY to US$ 88.7 million, while its adjusted earnings per share (EPS) grew 29 per cent YoY to US$ 1.19 in Q3 2020.
FirstService also pays a quarterly cash dividend of US$ 0.165 per share, currently posting an yield of 0.469 per cent, as per the TMX portal.
©Kalkine Group 2020
Colliers International Group Inc. (TSX:CIGI)
Current Stock Price: C$ 171.94
Colliers International Group, a real estate and investment management company, leapt over 24 per cent in the last three months and by about 48 per cent in the last six months.
The C$ 4.2-billion market cap company has a price-to-book (P/B) ratio of 6.5, while its ROE is 12.93 per cent and ROA is 2.2 per cent, as per the TMX data.
For the third quarter ending 30 September 2020, revenues of Colliers International fell by about six per cent YoY to US$ 692.3 million. Its adjusted EBITDA, on the other hand, climbed by nine per cent YoY to US$ 92.1 million, while its adjusted EPS was up by four per cent YoY to US$ 1.08 in Q3 2020.
Colliers International declared a half-yearly cash dividend of US$ 0.05 per share in December last year. The dividend yield currently stands at 0.117 per cent, as per the TMX portal.
