NYSE:FIX is showing decent growth, but is still valued reasonably.

Last update: Aug 28, 2024

Discover COMFORT SYSTEMS USA INC (NYSE:FIX), an undervalued growth gem identified by our stock screener. NYSE:FIX is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Looking at the Growth

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:

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

Exploring NYSE:FIX's Valuation

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:FIX has received a 5 out of 10:

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIX indicates a somewhat cheap valuation: FIX is cheaper than 72.09% of the companies listed 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 25.24% in the coming years. This may justify a more expensive valuation.

A Closer Look at 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:

FIX has an Altman-Z score of 4.97. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.97, FIX belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
FIX has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
FIX has a better Debt to FCF ratio (0.15) than 90.70% of its industry peers.
FIX has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
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.
The current and quick ratio evaluation for FIX is rather negative, while it does have 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

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:FIX scores a 9 out of 10:

FIX has a Return On Assets of 10.13%. This is amongst the best in the industry. FIX outperforms 93.02% of its industry peers.
FIX's Return On Equity of 28.81% is amongst the best of the industry. FIX outperforms 95.35% of its industry peers.
The Return On Invested Capital of FIX (25.40%) is better than 97.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FIX is significantly above the industry average of 8.58%.
The 3 year average ROIC (15.98%) for FIX is below the current ROIC(25.40%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 7.02%, FIX belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
FIX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 9.42%, FIX belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
In the last couple of years the Operating Margin of FIX has grown nicely.
Looking at the Gross Margin, with a value of 20.03%, FIX is in the better half of the industry, outperforming 67.44% 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.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.