The real estate and property management industries are immensely large in terms of revenues and volume of corporations. The industry tends to be cyclical, and highly impacted by recession. The entire industry felt a large trough during the mortgage crisis beginning in 2007 through the recession of 2009. Many companies couldn’t continue operations leaving more opportunity for expansion and acquisition for those that did survive. First Service Corporation is one of those companies that survived the recession, consumer spending is continuing to grow as the US economy recovers, pumping funds back into the market. Globally, they are one of the more well known companies in the real estate and property management industry. They have grown to manage over 2.5 billion square feet of properties worldwide and they reported record numbers for the quarter and year ending December 31, 2013. At the close of the 2013 fiscal year the corporation’s earnings per share have grown from the previous year’s $1.64 to now $2.15. The most recent reporting of their return on equity lists them at 11.04% and their beta stands at 1.59, nearly 60% more volatile than the market. Their revenues for 2013 concluded at $2.34bil, up 12% from the previous year while their corporate costs jumped from $11.6mil to $17.3mil. This increase in costs was nearly entirely attributed to the recent heightening of their performance-based compensation plan conducted in attempts of giving their employees more incentive to continue to strive for the success of the corporation. FSRV can be broken down into their three platforms of services: Colliers International, FirstService Residential, and FirstService Brands. Colliers International is their commercial re... ... middle of paper ... ...es, which really adds up considering they manage 2.5 billion square feet of properties. FirstService Brands reported revenues for 2013 as 140.3 mil, up 12% from the previous year. FSRV, the ticker for First Service Corporation was most recently traded at $48.35 under a $1.74bil market cap. My plan of action would not be to invest or sell, however to hold if I were already a shareholder. For me, as a college student with no income until summer, the volatility of their industry is too risky to invest in. I cannot afford the most negative consequence even though the positive alternative would be equal in degree. If I were a shareholder I would hold it, their recovery since the recession has been promising and recent record year and quarter ending Dec. 31, 2013 provides me intuitive reason to believe the future will bring better days for their stock price.
Following the Global Financial Crisis (GFC) of 2009 BlueScope was in its worst ever market position. As of 2011 the price of shares had hit record lows of 38c compared to $12.03 of just three years earlier, showing a 93% reduction in share prices. Huge financial losses were also recorded. In the 2010/2011 financia...
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
stock is overvalued. A case could be made to hold the stock if it is already
A number of key concerns about the financial health and management of SCI present themselves in the data outlined above. Though the main concerns tie to a unique requirement of the funeral service industry, mainly the purchase and holding of long term assets such as land and buildings. This may explain the poor numbers relating to the lack of liquidity (Current/Quick Ratios), as well as the low return on invested capital.
In order to make inferences about a company’s financial condition, its operations, and its attractiveness as an investment we have analyzed financial ratios and compare ratios derived from SVU’s financial statements (see chart 1).
Total Asset Turnover – Dropped from .64 in 2001 to .58 in 2002 to .55 in 2003. The reason is big increase in Total Assets.
The basic cause of the financial crises falls collectively on debt and mortgage-backed assets. Since the Great Depression the property prices in the U.S. were always steadily incr...
"Real Estate Industry Career Outlook, 2014: More Jobs on the Horizon?" US Housing News RSS. N.p., n.d. Web. 20 May 2014.
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
Ross, S.A., Westerfield, R.W., Jaffe, J. and Jordan, B.D., 2008. Modern Financial Management: International Student Edition. 8th Edition. New York: McGraw-Hill Companies.
By understanding the equity base and financial statements of SRS LTD (Annual report, 2015) we can say company is performing better as the sales revenue is increasing every year. Company was having a turnover of Rs. 3447.83 crore in 2014, which increased to Rs 6000 crore in 2015 (Batra, 2015). Company invested a huge of amount in the real estate and has a land area of about 500 acres and now company is in process of building various projects as the land prices are going up on the daily basis so huge booking are made which is increasing the equity of the company (Srs real estate, 2015).
Berk, J., & DeMarzo, P. (2011). Corporate finance: The core, second edition. (2nd ed.). Boston, MA: Prentice Hall.
In evaluating CBRE Group, I discovered that the primary source of the revenue for the company is real estate acquisitions, leasing and investment management. For 2013 the total assets reported was $6,998,414 and the total revenues was $1,106,076. The total cash and cash equivalen...
"More Companies Turn to ABC."Journal of Accountancy, July 1994, p. 14. 11. Ness, J.A. and T.G. Cucuzza. " Tapping the Full Potential of ABC."
Financial Future: Where Will it be in 10 Years? Retrieved on November 20, 2013 from