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FIX

Comfort Systems USA NYSE:FIX Stock Report

Last Price

US$97.33

Market Cap

US$3.5b

7D

-0.8%

1Y

31.4%

Updated

01 Oct, 2022

Data

Company Financials +
FIX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends0/6

FIX Stock Overview

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

Comfort Systems USA Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Comfort Systems USA
Historical stock prices
Current Share PriceUS$97.33
52 Week HighUS$109.00
52 Week LowUS$73.48
Beta1.23
1 Month Change-3.62%
3 Month Change15.63%
1 Year Change31.42%
3 Year Change125.41%
5 Year Change163.05%
Change since IPO508.31%

Recent News & Updates

Sep 22

Comfort Systems: Likely Price Increase Thanks To M&A And Internationalization

Summary At over 140 locations across the United States, Comfort Systems sells heating, ventilation, air conditioning, and electrical contracting services. Management has know-how accumulated in the past as well as design and build expertise, which will enhance future revenue growth. If I also take into account potential economies of scale, new innovative technology, and operating efficiencies, future free cash flow could grow from its current level. Comfort Systems USA, Inc. (FIX) operates a diversified business model with stable sales growth and EBITDA margins. In my view, the current financial situation would allow further acquisitions and perhaps internationalization. If we also add potential operating efficiencies from the company's announced best practices and the current backlog, in my view, the stock appears to be a buy. Yes, there are some risks from failed forecasts in the estimation of projects, but the current stock price appears too low. Comfort Systems At over 140 locations across the United States, Comfort Systems sells heating, ventilation, air conditioning, and electrical contracting services. The company serves customers from many different industries and sectors, which, in my view, may make the revenue growth less volatile. Source: Presentation After the most recent quarterly release, sector diversification is not the only reason to study Comfort Systems. The company reported same-store revenue growth of over 24% due to higher costs in materials and strong markets. In my view, if management continues to plan and execute successfully, I don't see why revenue growth wouldn't continue going north. We are happy to report a remarkably strong second quarter. Unprecedented market conditions resulted in same-store revenue growth of over 24%, driven by increased activity due to strong markets as well as the effect of cost increases in materials, equipment, and other inputs. Thanks to careful planning and superb execution, our teams continue their strong performance for our customers and stakeholders. Source: Press Release The words from management about future continued strong earnings and cash flow in the coming quarters are also worth noting. Let's also note that Comfort Systems saw an increase in its backlog from $1 billion in 2018 to more than $2.8 billion in 2022. Although conditions are hard to predict in the near term, we are reassured by the fact that we have an expert and committed workforce, and as a result we anticipate continued strong earnings and cash flow in the coming quarters. Source: Press Release Source: Presentation Considering the industry in which Comfort operates, I expected to find a lot of recurrent services. In 2022, services calls, maintenance, and monitoring represented 13% of the total amount of revenue. In my view, if the company tries to sign more agreements including recurring revenue, more investors will be interested in Comfort. Source: Presentation Financial Advisors Expect Stable EBITDA Margin, Free Cash Flow, And Stable Net Income In my view, the expectations of other financial advisors are beneficial. They expect some deceleration of sales growth in 2023 and 2024. However, the EBITDA margin is expected to remain stable at close to 8%, with an operating margin close to 5%-6%. The net income would exceed $201 million in 2022, 2023, and 2024. The level of profit is expected to be significantly higher than that in the last four years. marketscreener.com The investors making financial models may also appreciate Comfort Systems because of the expectations for free cash flow. The FCF/Sales margin is expected to be close to 5%-6% with capital expenditures/sales around 0.8% and 0.7%. I used some of these figures in my DCF models. marketscreener.com Balance Sheet As of June 30, 2022, the company reported $69 million in cash, total assets worth $2.43 billion, and billed accounts receivable worth $942 million. In my opinion, we could expect future sales growth as clients pay for the services Comfort offered. Finally, with an asset/liability ratio over 1x, I believe that the financial situation is in good shape. 10-Q The long-term debt is equal to $403 million, which I don't think represents a significant amount of debt. Keep in mind that I am expecting 2028 EBITDA close to $400 million, and the backlog exceeds $2.8 billion. 10-Q With Sufficient Safety, Customer Service, And Cost Tracking, Comfort Systems Is Worth $107 Per Share Management has know-how accumulated in the past as well as design and build expertise, which will enhance future revenue growth. I also believe that under normal conditions, Comfort Systems will successfully offer customer service, and will execute cost tracking. Besides, recently, the company noted that operating efficiencies will most likely appear thanks to pricing strategies and job loop improvements among other techniques. Efficiencies could enhance EBITDA margins in the coming years, and push the company's fair valuation up. We think we can achieve operating efficiencies and cost savings through purchasing economies, adopting "best practices," and focusing on efficient job management. We are continually improving the "job loop" at our locations-qualifying, estimating, pricing, and executing projects effectively and efficiently. We also use our combined spend to gain purchasing advantages on products and services such as MEP components, raw materials, services, vehicles, bonding, insurance, and employee benefits. Source: 10-k Finally, I would be assuming that Comfort's efforts for identifying new technologies will most likely bring further productivity and customer satisfaction. As a result, I believe that Comfort Systems will likely see its sales grow at close to the growth rate seen in the past: We work to identify, develop, and implement new materials, products and methods that can achieve greater productivity and more efficient and sustainable outcomes. Above all, we have concluded that as technology develops in our industry the fundamental prerequisite for leadership is adopting such opportunities in the quality, accuracy, and buildability of our designs. Source: 10-k

Sep 20
Here's Why We Think Comfort Systems USA (NYSE:FIX) Is Well Worth Watching

Here's Why We Think Comfort Systems USA (NYSE:FIX) Is Well Worth Watching

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Aug 12
Does Comfort Systems USA (NYSE:FIX) Have A Healthy Balance Sheet?

Does Comfort Systems USA (NYSE:FIX) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

FIXUS ConstructionUS Market
7D-0.8%-1.0%-2.5%
1Y31.4%-1.2%-23.2%

Return vs Industry: FIX exceeded the US Construction industry which returned -1.2% over the past year.

Return vs Market: FIX exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is FIX's price volatile compared to industry and market?
FIX volatility
FIX Average Weekly Movement4.9%
Construction Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: FIX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FIX's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191713,200Brian Lanehttps://www.comfortsystemsusa.com

Comfort Systems USA, Inc. provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It engages in the design, engineering, integration, installation, and start-up of mechanical, electrical, and plumbing (MEP) systems; and renovation, expansion, maintenance, monitoring, repair, and replacement of existing buildings. The company offers its services for heating, ventilation, and air conditioning (HVAC) systems, as well as plumbing, piping and controls, off-site construction, electrical, monitoring, and fire protection.

Comfort Systems USA Fundamentals Summary

How do Comfort Systems USA's earnings and revenue compare to its market cap?
FIX fundamental statistics
Market CapUS$3.47b
Earnings (TTM)US$212.90m
Revenue (TTM)US$3.59b

16.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FIX income statement (TTM)
RevenueUS$3.59b
Cost of RevenueUS$2.95b
Gross ProfitUS$641.42m
Other ExpensesUS$428.52m
EarningsUS$212.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.97
Gross Margin17.85%
Net Profit Margin5.93%
Debt/Equity Ratio45.2%

How did FIX perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

9%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FIX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FIX?

Other financial metrics that can be useful for relative valuation.

FIX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA13.9x
PEG Ratio-40.3x

Price to Earnings Ratio vs Peers

How does FIX's PE Ratio compare to its peers?

FIX PE Ratio vs Peers
The above table shows the PE ratio for FIX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average30.8x
ACA Arcosa
30.3x18.7%US$2.8b
AMRC Ameresco
36.2x14.9%US$3.4b
DY Dycom Industries
30.4x36.9%US$2.8b
VMI Valmont Industries
26.4x17.2%US$5.7b
FIX Comfort Systems USA
16.3x-0.4%US$3.5b

Price-To-Earnings vs Peers: FIX is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (30.8x).


Price to Earnings Ratio vs Industry

How does FIX's PE Ratio compare vs other companies in the US Construction Industry?

Price-To-Earnings vs Industry: FIX is good value based on its Price-To-Earnings Ratio (16.3x) compared to the US Construction industry average (25.9x)


Price to Earnings Ratio vs Fair Ratio

What is FIX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FIX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: FIX is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).


Share Price vs Fair Value

What is the Fair Price of FIX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FIX ($97.33) is trading below our estimate of fair value ($209.4)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIX's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: FIX's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: FIX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FIX's revenue (6.7% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: FIX's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FIX's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

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

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FIX has high quality earnings.

Growing Profit Margin: FIX's current net profit margins (5.9%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: FIX's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: FIX's earnings growth over the past year (39.7%) exceeds its 5-year average (21.9% per year).

Earnings vs Industry: FIX earnings growth over the past year (39.7%) exceeded the Construction industry 16.7%.


Return on Equity

High ROE: FIX's Return on Equity (23.7%) is considered high.


Discover strong past performing companies

Financial Health

How is Comfort Systems USA's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FIX's short term assets ($1.2B) exceed its short term liabilities ($968.2M).

Long Term Liabilities: FIX's short term assets ($1.2B) exceed its long term liabilities ($574.6M).


Debt to Equity History and Analysis

Debt Level: FIX's net debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: FIX's debt to equity ratio has increased from 26.3% to 45.2% over the past 5 years.

Debt Coverage: FIX's debt is well covered by operating cash flow (44%).

Interest Coverage: FIX's interest payments on its debt are well covered by EBIT (24.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.57%

Current Dividend Yield

Dividend Yield vs Market

Comfort Systems USA Dividend Yield vs Market
How does Comfort Systems USA dividend yield compare to the market?
SegmentDividend Yield
Company (Comfort Systems USA)0.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Construction)0.9%
Analyst forecast in 3 Years (Comfort Systems USA)0.6%

Notable Dividend: FIX's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: FIX's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (4.73%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

12.5yrs

Average management tenure


CEO

Brian Lane (65 yo)

11.83yrs

Tenure

US$4,503,087

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

Brian Lane's Compensation vs Comfort Systems USA Earnings
How has Brian Lane's remuneration changed compared to Comfort Systems USA's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$213m

Mar 31 2022n/an/a

US$204m

Dec 31 2021US$5mUS$792k

US$143m

Sep 30 2021n/an/a

US$149m

Jun 30 2021n/an/a

US$152m

Mar 31 2021n/an/a

US$159m

Dec 31 2020US$4mUS$765k

US$150m

Sep 30 2020n/an/a

US$141m

Jun 30 2020n/an/a

US$127m

Mar 31 2020n/an/a

US$112m

Dec 31 2019US$3mUS$740k

US$114m

Sep 30 2019n/an/a

US$105m

Jun 30 2019n/an/a

US$108m

Mar 31 2019n/an/a

US$116m

Dec 31 2018US$3mUS$715k

US$113m

Sep 30 2018n/an/a

US$95m

Jun 30 2018n/an/a

US$79m

Mar 31 2018n/an/a

US$64m

Dec 31 2017US$2mUS$670k

US$55m

Sep 30 2017n/an/a

US$65m

Jun 30 2017n/an/a

US$63m

Mar 31 2017n/an/a

US$63m

Dec 31 2016US$2mUS$625k

US$65m

Sep 30 2016n/an/a

US$61m

Jun 30 2016n/an/a

US$58m

Mar 31 2016n/an/a

US$54m

Dec 31 2015US$2mUS$585k

US$49m

Compensation vs Market: Brian's total compensation ($USD4.50M) is below average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FIX's management team is seasoned and experienced (12.5 years average tenure).


Board Members

Experienced Board: FIX's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FIX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:FIX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 Aug 22SellUS$2,316,996Franklin MyersIndividual21,719US$107.32
16 Aug 22SellUS$1,092,440Brian LaneIndividual10,211US$106.99
11 Aug 22SellUS$827,520Herman BullsIndividual8,000US$103.44
29 Jul 22SellUS$251,039Pablo MercadoIndividual2,475US$101.43
16 Jun 22SellUS$1,500,770Alan KrusiIndividual17,894US$83.87
06 Jun 22SellUS$172,562Vance TangIndividual1,869US$92.34
18 Nov 21SellUS$7,596,391Franklin MyersIndividual74,227US$102.34
17 Nov 21SellUS$198,263Vance TangIndividual1,939US$102.25

Ownership Breakdown

What is the ownership structure of FIX?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders825,0732.3%
Institutions35,095,79897.7%

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


Top Shareholders

Top 25 shareholders own 74.53% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
15.45%
BlackRock, Inc.
5,510,122$536.3m0.28%0.01%
10.82%
The Vanguard Group, Inc.
3,858,814$375.6m3.63%0.01%
7.73%
Capital Research and Management Company
2,757,839$268.4m0%0.02%
3.73%
River Road Asset Management, LLC
1,329,605$129.4m-2.75%1.88%
3.65%
Dimensional Fund Advisors LP
1,300,447$126.6m-5.09%0.03%
3.32%
State Street Global Advisors, Inc.
1,183,457$115.2m1.18%0.01%
2.26%
FMR LLC
807,064$78.6m30.38%0.01%
2.06%
Victory Capital Management Inc.
736,285$71.7m4.29%0.08%
2%
Neumeier Poma Investment Counsel LLC
714,608$69.6m-3.39%5.83%
1.94%
Westwood Management Corp.
691,376$67.3m-3.45%0.78%
1.85%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
658,357$64.1m-5.03%0.02%
1.81%
Janus Henderson Group plc
644,185$62.7m-3.09%0.04%
1.69%
Geode Capital Management, LLC
602,205$58.6m-0.79%0.01%
1.68%
T. Rowe Price Group, Inc.
597,472$58.2m0.51%0.01%
1.67%
Brown Advisory Incorporated
595,686$58.0m-2.08%0.1%
1.65%
Fuller & Thaler Asset Management, Inc.
589,462$57.4m-7.03%0.42%
1.64%
Lord, Abbett & Co. LLC
585,741$57.0m3.4%0.21%
1.54%
GW&K Investment Management, LLC
550,937$53.6m-14.12%0.59%
1.49%
Federated Hermes, Inc.
531,711$51.8m-0.05%0.16%
1.29%
Principal Global Investors, LLC
460,946$44.9m-5.27%0.03%
1.11%
BNY Mellon Asset Management
396,264$38.6m-1.68%0.01%
1.09%
Northern Trust Global Investments
388,151$37.8m-2.85%0.01%
1.05%
Systematic Financial Management LP
373,228$36.3m-0.23%1.19%
1.04%
Charles Schwab Investment Management, Inc.
369,893$36.0m2.06%0.01%
0.96%
Norges Bank Investment Management
344,044$33.5m0%no data

Company Information

Comfort Systems USA, Inc.'s 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
  • Implied Market Cap: US$3.471b
  • Shares outstanding: 35.66m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.