NYSE:FIX

Stock Analysis Report

Executive Summary

Comfort Systems USA, Inc. provides mechanical installation, renovation, maintenance, repair, and replacement services for the mechanical services industry in the United States.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Comfort Systems USA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

FIX

0.2%

US Construction

-1.1%

US Market


1 Year Return

-10.1%

FIX

13.1%

US Construction

17.8%

US Market

Return vs Industry: FIX underperformed the US Construction industry which returned 13.3% over the past year.

Return vs Market: FIX underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

FIXIndustryMarket
7 Day-0.6%0.2%-1.1%
30 Day-1.1%1.8%1.5%
90 Day-4.2%4.8%6.6%
1 Year-9.4%-10.1%14.0%13.1%20.2%17.8%
3 Year29.3%26.4%9.3%6.9%47.5%38.1%
5 Year172.0%160.7%43.0%38.0%71.2%52.4%

Price Volatility Vs. Market

How volatile is Comfort Systems USA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Comfort Systems USA undervalued compared to its fair value and its price relative to the market?

22.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FIX ($48.85) is trading below our estimate of fair value ($62.94)

Significantly Below Fair Value: FIX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FIX is good value based on its PE Ratio (17.1x) compared to the Construction industry average (17.6x).

PE vs Market: FIX is good value based on its PE Ratio (17.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: FIX is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: FIX is overvalued based on its PB Ratio (3.2x) compared to the US Construction industry average (1.9x).


Next Steps

Future Growth

How is Comfort Systems USA forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIX's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: FIX's earnings (10.3% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: FIX's earnings are forecast to grow, but not significantly.

Revenue vs Market: FIX's revenue (5.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FIX's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FIX's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Comfort Systems USA performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FIX has high quality earnings.

Growing Profit Margin: FIX's current net profit margins (4.2%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: FIX's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: FIX's earnings growth over the past year (10.6%) is below its 5-year average (26.8% per year).

Earnings vs Industry: FIX earnings growth over the past year (10.6%) exceeded the Construction industry 2.4%.


Return on Equity

High ROE: FIX's Return on Equity (18.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Comfort Systems USA's financial position?


Financial Position Analysis

Short Term Liabilities: FIX's short term assets ($750.4M) exceed its short term liabilities ($577.7M).

Long Term Liabilities: FIX's short term assets ($750.4M) exceed its long term liabilities ($332.1M).


Debt to Equity History and Analysis

Debt Level: FIX's debt to equity ratio (43.4%) is considered high.

Reducing Debt: FIX's debt to equity ratio has increased from 13.2% to 43.4% over the past 5 years.

Debt Coverage: FIX's debt is well covered by operating cash flow (73.9%).

Interest Coverage: FIX's interest payments on its debt are well covered by EBIT (19.7x coverage).


Balance Sheet

Inventory Level: FIX has a low level of unsold assets or inventory.

Debt Coverage by Assets: FIX's debt is covered by short term assets (assets are 3.1x debt).


Next Steps

Dividend

What is Comfort Systems USA's current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: FIX's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FIX's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: FIX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: FIX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: FIX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.5yrs

Average management tenure


CEO

Brian Lane (62yo)

8.2yrs

Tenure

US$3,337,554

Compensation

Mr. Brian E. Lane has been the Chief Executive Officer of Comfort Systems USA Inc. since December 2011 and has been its President since March 30, 2010. Mr. Lane served as the Chief Operating Officer and Ex ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD3.34M) is about average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Lane
CEO, President & Director8.2yrsUS$3.34m0.53% $9.4m
William George
Executive VP & CFO14.8yrsUS$1.78m0.11% $2.0m
Julie Shaeff
Senior VP & Chief Accounting Officer14.8yrsUS$790.96k0.068% $1.2m
Trent McKenna
Senior VP & VP - Region 46.5yrsUS$1.14m0.095% $1.7m
Jeremy Jones
VP & Chief Information Officer0yrsno datano data
Laura Howell
VP, General Counsel & Corporate Secretary1.1yrsno data0.0086% $153.2k
Charles Diltz
Senior Vice President - Region 416.9yrsno datano data
Thomas Tanner
Senior Vice President of Region 516.1yrsUS$1.27mno data
R. Tillison
Senior Vice President of Region 20yrsno datano data
Terrence Young
Senior Vice President of Service1.1yrsno data0.00082% $14.7k

11.5yrs

Average Tenure

54yo

Average Age

Experienced Management: FIX's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Lane
CEO, President & Director8.2yrsUS$3.34m0.53% $9.4m
James Schultz
Independent Director17.3yrsUS$219.96k0.23% $4.1m
Franklin Myers
Independent Chairman5.8yrsUS$276.06k0.72% $12.8m
Herman Bulls
Independent Director19yrsUS$219.96k0.17% $3.1m
Darcy Anderson
Independent Director11.9yrsUS$219.96k0.13% $2.4m
Alan Krusi
Independent Director11.9yrsUS$239.96k0.099% $1.8m
Vance Tang
Independent Director7.2yrsUS$239.96k0.057% $1.0m
William Sandbrook
Independent Director1.8yrsUS$204.14k0.046% $816.5k
Pablo Mercado
Independent Director1.3yrsUS$9.95k0.014% $257.1k
Constance Skidmore
Independent Director7.2yrsUS$249.96k0.093% $1.7m

8.2yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FIX's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FIX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Comfort Systems USA, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comfort Systems USA, Inc.
  • Ticker: FIX
  • Exchange: NYSE
  • Founded: 1917
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$1.788b
  • Shares outstanding: 36.60m
  • Website: https://www.comfortsystemsusa.com

Number of Employees


Location

  • Comfort Systems USA, Inc.
  • 675 Bering Drive
  • Suite 400
  • Houston
  • Texas
  • 77057
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIXNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1997
9CFDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997

Biography

Comfort Systems USA, Inc. provides mechanical installation, renovation, maintenance, repair, and replacement services for the mechanical services industry in the United States. It is involved in the design, engineering, integration, installation, and start-up of mechanical and related systems; and maintenance, repair, replacement, renovation, expansion, reconfiguration, and monitoring of mechanical systems, including heating, ventilation, and air conditioning (HVAC) systems, as well as plumbing, piping and controls, off-site construction, electrical, monitoring, and fire protection. The company provides its services for office buildings, retail centers, apartment complexes, and manufacturing plants; and healthcare, education, and government facilities. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional HVAC markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:13
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.