Exploring the Growth Potential of NYSE:FIX as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if COMFORT SYSTEMS USA INC (NYSE:FIX) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted COMFORT SYSTEMS USA INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Understanding NYSE:FIX's Growth Score

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:FIX was assigned a score of 8 for growth:

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

A Closer Look at Health for NYSE:FIX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:FIX has earned a 8 out of 10:

• FIX has an Altman-Z score of 4.95. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.95, FIX belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
• 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.
• Looking at the Debt to FCF ratio, with a value of 0.15, FIX belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
• A Debt/Equity ratio of 0.05 indicates that FIX is not too dependend on debt financing.
• With an excellent Debt to Equity ratio value of 0.05, FIX belongs to the best of the industry, outperforming 83.72% of the companies in the same industry.
• 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.

A Closer Look at Profitability for NYSE:FIX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:FIX has achieved a 9:

• Looking at the Return On Assets, with a value of 10.13%, FIX belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 28.81%, FIX belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 25.40%, FIX belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for FIX is significantly above the industry average of 8.59%.
• The 3 year average ROIC (15.98%) for FIX is below the current ROIC(25.40%), indicating increased profibility in the last year.
• FIX has a Profit Margin of 7.02%. This is amongst the best in the industry. FIX outperforms 86.05% of its industry peers.
• In the last couple of years the Profit Margin of FIX has grown nicely.
• FIX has a better Operating Margin (9.42%) than 81.40% of its industry peers.
• FIX's Operating Margin has improved in the last couple of years.
• The Gross Margin of FIX (20.03%) is better than 67.44% of its industry peers.

How does the Setup look for NYSE:FIX

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:FIX is 7:

FIX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 342.32. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 320.42, a Stop Loss order could be placed below this zone.

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

Our latest full fundamental report of FIX contains the most current fundamental analsysis.

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

Keep in mind

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.