| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 6/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$97.33 |
| 52 Week High | US$109.00 |
| 52 Week Low | US$73.48 |
| Beta | 1.23 |
| 1 Month Change | -3.62% |
| 3 Month Change | 15.63% |
| 1 Year Change | 31.42% |
| 3 Year Change | 125.41% |
| 5 Year Change | 163.05% |
| Change since IPO | 508.31% |
Recent News & Updates
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
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Shareholder Returns
| FIX | US Construction | US Market | |
|---|---|---|---|
| 7D | -0.8% | -1.0% | -2.5% |
| 1Y | 31.4% | -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
| FIX volatility | |
|---|---|
| FIX Average Weekly Movement | 4.9% |
| Construction Industry Average Movement | 5.3% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.8% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1917 | 13,200 | Brian Lane | https://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
| FIX fundamental statistics | |
|---|---|
| Market Cap | US$3.47b |
| Earnings (TTM) | US$212.90m |
| Revenue (TTM) | US$3.59b |
16.3x
P/E Ratio1.0x
P/S RatioIs FIX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FIX income statement (TTM) | |
|---|---|
| Revenue | US$3.59b |
| Cost of Revenue | US$2.95b |
| Gross Profit | US$641.42m |
| Other Expenses | US$428.52m |
| Earnings | US$212.90m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.97 |
| Gross Margin | 17.85% |
| Net Profit Margin | 5.93% |
| Debt/Equity Ratio | 45.2% |
How did FIX perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield9%
Payout RatioValuation
Is FIX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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.
| What is FIX's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$3.47b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.1x |
| Enterprise Value/EBITDA | 13.9x |
| 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 |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 30.8x | ||
ACA Arcosa | 30.3x | 18.7% | US$2.8b |
AMRC Ameresco | 36.2x | 14.9% | US$3.4b |
DY Dycom Industries | 30.4x | 36.9% | US$2.8b |
VMI Valmont Industries | 26.4x | 17.2% | 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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 16.3x |
| Fair PE Ratio | 14.6x |
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
0/6Future 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
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Past Performance
How has Comfort Systems USA performed over the past 5 years?
Past Performance Score
6/6Past 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
5/6Financial 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
0/6Dividend 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 |
|---|
| Segment | Dividend 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.
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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 |
|---|
| Date | Total Comp. | Salary | Company Earnings |
|---|---|---|---|
| Jun 30 2022 | n/a | n/a | US$213m |
| Mar 31 2022 | n/a | n/a | US$204m |
| Dec 31 2021 | US$5m | US$792k | US$143m |
| Sep 30 2021 | n/a | n/a | US$149m |
| Jun 30 2021 | n/a | n/a | US$152m |
| Mar 31 2021 | n/a | n/a | US$159m |
| Dec 31 2020 | US$4m | US$765k | US$150m |
| Sep 30 2020 | n/a | n/a | US$141m |
| Jun 30 2020 | n/a | n/a | US$127m |
| Mar 31 2020 | n/a | n/a | US$112m |
| Dec 31 2019 | US$3m | US$740k | US$114m |
| Sep 30 2019 | n/a | n/a | US$105m |
| Jun 30 2019 | n/a | n/a | US$108m |
| Mar 31 2019 | n/a | n/a | US$116m |
| Dec 31 2018 | US$3m | US$715k | US$113m |
| Sep 30 2018 | n/a | n/a | US$95m |
| Jun 30 2018 | n/a | n/a | US$79m |
| Mar 31 2018 | n/a | n/a | US$64m |
| Dec 31 2017 | US$2m | US$670k | US$55m |
| Sep 30 2017 | n/a | n/a | US$65m |
| Jun 30 2017 | n/a | n/a | US$63m |
| Mar 31 2017 | n/a | n/a | US$63m |
| Dec 31 2016 | US$2m | US$625k | US$65m |
| Sep 30 2016 | n/a | n/a | US$61m |
| Jun 30 2016 | n/a | n/a | US$58m |
| Mar 31 2016 | n/a | n/a | US$54m |
| Dec 31 2015 | US$2m | US$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
| Date | Value | Name | Entity | Role | Shares | Max Price |
|---|---|---|---|---|---|---|
| 18 Aug 22 | SellUS$2,316,996 | Franklin Myers | Individual | 21,719 | US$107.32 | |
| 16 Aug 22 | SellUS$1,092,440 | Brian Lane | Individual | 10,211 | US$106.99 | |
| 11 Aug 22 | SellUS$827,520 | Herman Bulls | Individual | 8,000 | US$103.44 | |
| 29 Jul 22 | SellUS$251,039 | Pablo Mercado | Individual | 2,475 | US$101.43 | |
| 16 Jun 22 | SellUS$1,500,770 | Alan Krusi | Individual | 17,894 | US$83.87 | |
| 06 Jun 22 | SellUS$172,562 | Vance Tang | Individual | 1,869 | US$92.34 | |
| 18 Nov 21 | SellUS$7,596,391 | Franklin Myers | Individual | 74,227 | US$102.34 | |
| 17 Nov 21 | SellUS$198,263 | Vance Tang | Individual | 1,939 | US$102.25 |
Ownership Breakdown
| Owner Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Individual Insiders | 825,073 | 2.3% |
| Institutions | 35,095,798 | 97.7% |
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
| Ownership | Name | Shares | Current Value | Change % | Portfolio % | |
|---|---|---|---|---|---|---|
| 5,510,122 | $536.3m | 0.28% | 0.01% | |||
| 3,858,814 | $375.6m | 3.63% | 0.01% | |||
| 2,757,839 | $268.4m | 0% | 0.02% | |||
| 1,329,605 | $129.4m | -2.75% | 1.88% | |||
| 1,300,447 | $126.6m | -5.09% | 0.03% | |||
| 1,183,457 | $115.2m | 1.18% | 0.01% | |||
| 807,064 | $78.6m | 30.38% | 0.01% | |||
| 736,285 | $71.7m | 4.29% | 0.08% | |||
| 714,608 | $69.6m | -3.39% | 5.83% | |||
| 691,376 | $67.3m | -3.45% | 0.78% | |||
| 658,357 | $64.1m | -5.03% | 0.02% | |||
| 644,185 | $62.7m | -3.09% | 0.04% | |||
| 602,205 | $58.6m | -0.79% | 0.01% | |||
| 597,472 | $58.2m | 0.51% | 0.01% | |||
| 595,686 | $58.0m | -2.08% | 0.1% | |||
| 589,462 | $57.4m | -7.03% | 0.42% | |||
| 585,741 | $57.0m | 3.4% | 0.21% | |||
| 550,937 | $53.6m | -14.12% | 0.59% | |||
| 531,711 | $51.8m | -0.05% | 0.16% | |||
| 460,946 | $44.9m | -5.27% | 0.03% | |||
| 396,264 | $38.6m | -1.68% | 0.01% | |||
| 388,151 | $37.8m | -2.85% | 0.01% | |||
| 373,228 | $36.3m | -0.23% | 1.19% | |||
| 369,893 | $36.0m | 2.06% | 0.01% | |||
| 344,044 | $33.5m | 0% | 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FIX | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 1997 |
| 9CF | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1997 |
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/10/01 00:00 |
| End of Day Share Price | 2022/09/30 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.