Looking for growth without the hefty price tag? Consider NYSE:FIX.

Last update: Aug 7, 2024

COMFORT SYSTEMS USA INC (NYSE:FIX) was identified as an affordable growth stock by our stock screener. NYSE:FIX is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:FIX has received a 8 out of 10:

The Earnings Per Share has grown by an impressive 76.24% over the past year.
FIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.57% yearly.
The Revenue has grown by 29.20% in the past year. This is a very strong growth!
The Revenue has been growing by 18.99% on average over the past years. This is quite good.
Based on estimates for the next years, FIX will show a very strong growth in Earnings Per Share. The EPS will grow by 25.24% on average per year.
FIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.69% yearly.

A Closer Look at Valuation for NYSE:FIX

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:FIX was assigned a score of 5 for valuation:

Based on the Price/Free Cash Flow ratio, FIX is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FIX may justify a higher PE ratio.
A more expensive valuation may be justified as FIX's earnings are expected to grow with 25.24% in the coming years.

Understanding NYSE:FIX's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:FIX was assigned a score of 8 for health:

FIX has an Altman-Z score of 4.77. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FIX (4.77) is better than 85.71% of its industry peers.
The Debt to FCF ratio of FIX is 0.15, which is an excellent value as it means it would take FIX, only 0.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FIX (0.15) is better than 88.10% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that FIX is not too dependend on debt financing.
The Debt to Equity ratio of FIX (0.05) is better than 90.48% 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 assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:FIX was assigned a score of 9 for profitability:

Looking at the Return On Assets, with a value of 10.13%, FIX belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Return On Equity value of 28.81%, FIX belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
FIX has a better Return On Invested Capital (25.40%) than 97.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FIX is significantly above the industry average of 8.18%.
The 3 year average ROIC (15.98%) for FIX is below the current ROIC(25.40%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 7.02%, FIX belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
In the last couple of years the Profit Margin of FIX has grown nicely.
The Operating Margin of FIX (9.42%) is better than 83.33% of its industry peers.
FIX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 20.03%, FIX is doing good in the industry, outperforming 66.67% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of FIX for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.