On January 20, Jacobson & Schmitt Advisors reported buying 49,829 shares of FirstService (FSV 0.52%) for an estimated $8.11 million based on quarterly average pricing.
What happened
In a SEC filing dated January 20, Jacobson & Schmitt Advisors disclosed purchasing 49,829 additional shares of FirstService (FSV 0.52%), bringing its total position to 144,994 shares. The estimated value of shares acquired was $8.11 million, based on the mean unadjusted close within the fourth quarter. Meanwhile, the fund’s quarter-end position value in FirstService increased by $4.42 million, a figure reflecting both trading activity and share price changes.
What else to know
The fund increased its FirstService stake, which now comprises 3.8% of its $593.94 million reportable U.S. equity portfolio as of December 31.
Top holdings after the filing:
- NASDAQ: IUSB: $36.26 million (6.1% of AUM)
- NYSE: APH: $33.36 million (5.6% of AUM)
- NASDAQ: AMZN: $29.88 million (5.0% of AUM)
- NASDAQ: MBB: $21.81 million (3.7% of AUM)
- NYSE: DHR: $21.80 million (3.7% of AUM)
As of January 20, shares of FirstService were priced at $160.92, down 11.3% over the past year and trailing the S&P 500 by about 25 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of January 20) | $160.92 |
| Market capitalization | $7.36 billion |
| Revenue (TTM) | $5.48 billion |
| Net income (TTM) | $138.55 million |
Company snapshot
- FirstService provides residential property management, restoration, painting, storage solutions, home inspection, and fire protection services across North America, with major brands such as Paul Davis Restoration, CertaPro Painters, and California Closets.
- The company operates through two segments—FirstService Residential (recurring property management contracts and ancillary services) and FirstService Brands (franchise and company-owned service locations)—generating revenue from management fees, service contracts, and franchise royalties.
- It serves residential communities, homeowner associations, commercial property owners, and franchisees, primarily in the United States and Canada.
FirstService is a leading provider of property management and essential property services, managing a diverse portfolio of residential and commercial assets. The company leverages a dual-segment structure to deliver stable recurring revenue from management contracts while expanding its reach through branded service franchises and company-owned operations. Its scale, service breadth, and established brand networks position it competitively in the North American real estate services sector.
What this transaction means for investors
This addition increases Jacobson & Schmitt’s exposure to a business built around recurring, needs-based demand at a time when housing turnover and discretionary spending remain uneven. For long-term investors, the appeal is less about near-term multiple expansion and more about durability.
The latest quarterly results show why. Third-quarter revenue rose 4% year over year to $1.45 billion, while adjusted EBITDA climbed to $164.8 million, up 3%. Adjusted EPS, meanwhile, came in at $1.76, an 8% increase, reflecting steady execution despite weather disruptions and softer activity in parts of the Brands segment. The Residential division continues to do the heavy lifting, posting 8% revenue growth and margin expansion driven by new contract wins and labor efficiency gains.
That stability contrasts with more cyclical holdings elsewhere in the portfolio and explains why this stake now represents nearly 4% of reported equity assets. Shares have lagged over the past year, but fundamentals have not meaningfully deteriorated. Debt levels have edged down, cash flow remains solid, and the business still benefits from low capital intensity. The firm will report fourth-quarter earnings on February 4.
