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Summary
- FirstService Corp reported an adjusted EBITDA of US$88.7 million for the third quarter of 2020, up 15 per cent YoY.
- FirstService stocks grew 47.45 per cent this year.
- Colliers posted an adjusted EBITDA of US$ 92.1 million for Q3 2020, up 9 per cent year-over-year.
- In the last three months, Colliers stocks have swelled by 38.88 per cent.
As per Statistics Canada, real estate and rental and leasing increased by 0.8 per cent in August following a 1.9 per cent gain in July. After three months of double-digit surges, activity at the offices of real estate agents and brokers was up another 8.6 per cent in August, highest since August 2015, driven by sustained robust home resale activity across Canada.
Real estate companies are also reporting strong third-quarter earnings. To further analyze this sector, let us look at the following two real estate stocks that have recently announced their financial results: FirstService Corporation (TSX:FSV) and Colliers International Group Inc. (TSX:CIGI).
FirstService Corporation (TSX:FSV)
Current Stock Price: C$ 185.36
FirstService Corp operates in residential and property services across the United States and Canada.
Its revenues during the third quarter of 2020 surged to US$741.9 million, a 10 per cent year-over-year increase. The growth was mainly led by strong performance at its restoration service lines. The company reported an adjusted EBITDA of US$88.7 million for the third quarter of 2020, a 15 per cent increase compared to Q3 2019. The GAAP (Generally Accepted Accounting Principles) diluted earnings per share of US$ 0.75 in Q3 2020, compared to US$ 0.50 for Q3 2020.
FirstService’s operations continue to show resilience amid the COVID-19 pandemic, and the company is expecting a strong finish to the year, said CEO Scott Patterson.
FirstService Corp. Stock Performance
In the last three months, the stock has surged by 12.26 per cent. The year-to-date performance of the scrips shows a 47.45 per cent increase, from C$ 121.97 at the beginning of the year to C$ 179.85 at the time of filing this story. The stock has regained over 112 per cent since the pandemic-led crisis on March 24.
Its current market capitalization stands at C$ 7.817 billion.
As per the TMX data, FirstService Corp’s profit-to-book (P/B) ratio is 9.204, and the price-to-cash flow (P/CF) ratio is 24. The company offers a positive return on equity (ROE) of 15.92 per cent, and a positive return on assets (ROA) of 3.39 per cent. The company’s current debt-to-earnings (D/E) ratio is 1.18. Its price-to-earnings (P/E) ratio is 66.6.
FirstService has been ranked among TMX’s top real estate stocks that have outperformed their peers in the last 30 days. The company has also been placed among TMX’s top price performer stocks that have the largest price gains on the TSX and the TSXV in the last 30 days.
The real estate company pays a quarterly cash dividend of US$ 0.165 and its current dividend yield is 0.483 per cent.
Colliers International Group Inc. (TSX:CIGI)
Current Stock Price: C$ 97.69
Colliers International Group is an Ontario-based company that operates in real estate services and investment management. The company offers diversified services in commercial real estate, and property services for residential globally.
Colliers International Group reported revenues of US$ 692.3 million for the third quarter ended September 30, 2020, down 6 per cent compared to Q3 2019. The company posted an adjusted EBITDA of US$ 92.1 million for Q3 2020, up 9 per cent year-over-year. The global real estate company posted a GAAP operating earnings of US$ 52.1 million for the quarter, compared to US$ 48.2 million in the third quarter of previous year. Colliers’ GAAP diluted net earnings per share were US$ 0.52, relative to $0.74 in Q3 2019.
During the third quarter of 2020, the company continued investing in its prospects through the addition of newly acquired Colliers Mortgage and Maser Consulting and completing the purchase of Colliers Nashville.
Colliers International Group Stock Performance
In the last three months, the Colliers’ stock has swelled by 38.88 per cent. The year-to-date performance of the scrips shows a 6.36 per cent decline, from C$ 121.97 at the beginning of the year to C$ 179.85 at the time of filing this story. The stock has recovered over 83 per cent since the pandemic-led crisis on March 24. Its current market capitalization is C$ 3.705 billion.
As per TMX data, Colliers’ P/B ratio is 5.437, and the price-to-cash flow (P/CF) ratio is 9.70. The international real estate company provides a positive return on equity (ROE) of 12.5 per cent and a positive return on assets (ROA) of 2.13 per cent. Its current debt-to-earnings (D/E) ratio is 2.16 and price-to-earnings (P/E) ratio is 45.80.
Colliers has been placed among TMX’s top real estate stocks that have outperformed their peers in the last 30 days. The stock has also been ranked among TMX’s top price performer stocks that have largest price gains on the TSX and the TSXV in the last 30 days.
Colliers International Group pays a semi-annual cash dividend of US$ 0.05, and its current dividend yield is 0.146 per cent.
