In the world of growth stocks, NYSE:FIX shines as a value proposition.

Last update: Jul 5, 2024

Our stock screener has singled out COMFORT SYSTEMS USA INC (NYSE:FIX) as an attractive growth opportunity. NYSE:FIX is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

How do we evaluate the Growth for NYSE:FIX?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:FIX scores a 8 out of 10:

The Earnings Per Share has grown by an impressive 68.25% over the past year.
Measured over the past years, FIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.57% on average per year.
FIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.72%.
The Revenue has been growing by 18.99% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 20.95% on average over the next years. This is a very strong growth
Based on estimates for the next years, FIX will show a quite strong growth in Revenue. The Revenue will grow by 12.87% on average per year.

Understanding NYSE:FIX's Valuation Score

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:FIX has earned a 5 for valuation:

FIX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FIX is cheaper than 69.05% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FIX has an outstanding profitability rating, which may justify a higher PE ratio.
FIX's earnings are expected to grow with 20.95% in the coming years. This may justify a more expensive valuation.

Assessing Health for NYSE:FIX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:FIX scores a 8 out of 10:

An Altman-Z score of 4.89 indicates that FIX is not in any danger for bankruptcy at the moment.
FIX's Altman-Z score of 4.89 is amongst the best of the industry. FIX outperforms 85.71% of its industry peers.
The Debt to FCF ratio of FIX is 0.16, which is an excellent value as it means it would take FIX, only 0.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FIX (0.16) is better than 90.48% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that FIX is not too dependend on debt financing.
The Debt to Equity ratio of FIX (0.06) is better than 88.10% of its industry peers.
FIX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Examination for NYSE:FIX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:FIX, the assigned 9 is noteworthy for profitability:

With an excellent Return On Assets value of 9.29%, FIX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
With an excellent Return On Equity value of 26.41%, FIX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Invested Capital of FIX (22.70%) is better than 97.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FIX is significantly above the industry average of 8.49%.
The 3 year average ROIC (15.98%) for FIX is below the current ROIC(22.70%), indicating increased profibility in the last year.
FIX has a better Profit Margin (6.51%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of FIX has grown nicely.
FIX's Operating Margin of 8.63% is amongst the best of the industry. FIX outperforms 80.95% of its industry peers.
FIX's Operating Margin has improved in the last couple of years.
FIX has a better Gross Margin (19.44%) than 66.67% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of FIX

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.