Comfort Systems USA, Inc.
Comfort Systems USA, Inc. Fundamental Analysis
Comfort Systems USA, Inc. (FIX) shows moderate financial fundamentals with a PE ratio of 47.47, profit margin of 11.23%, and ROE of 48.52%. The company generates $9.1B in annual revenue with strong year-over-year growth of 34.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze FIX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentFIX demonstrates superior asset utilization.
Valuation Score
WeakFIX trades at a premium to fair value.
Growth Score
ExcellentFIX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFIX maintains a strong and stable balance sheet.
Profitability Score
ModerateFIX maintains healthy but balanced margins.
Key Financial Metrics
Is FIX Expensive or Cheap?
P/E Ratio
FIX trades at 47.47 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FIX's PEG of 2.13 indicates potential overvaluation.
Price to Book
The market values Comfort Systems USA, Inc. at 19.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 33.53 times EBITDA. This signals the market has high growth expectations.
How Well Does FIX Make Money?
Net Profit Margin
For every $100 in sales, Comfort Systems USA, Inc. keeps $11.23 as profit after all expenses.
Operating Margin
Core operations generate 14.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $48.52 in profit for every $100 of shareholder equity.
ROA
Comfort Systems USA, Inc. generates $15.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Comfort Systems USA, Inc. produces operating cash flow of $1.19B, showing steady but balanced cash generation.
Free Cash Flow
Comfort Systems USA, Inc. generates strong free cash flow of $1.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $29.25 in free cash annually.
FCF Yield
FIX converts 2.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.49
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.43
vs 25 benchmark
How FIX Stacks Against Its Sector Peers
| Metric | FIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.47 | 25.83 | Worse (Expensive) |
| ROE | 48.52% | 1278.00% | Weak |
| Net Margin | 11.23% | -43774.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.21 | 10.63 | Neutral |
| ROA | 15.88% | -1539613.00% (disorted) | Strong |
FIX outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Comfort Systems USA, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
177.48%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
371.89%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
517.32%
Industry Style: Cyclical, Value, Infrastructure
High Growth