While growth is established for COMFORT SYSTEMS USA INC (NYSE:FIX), the stock's valuation remains reasonable.

COMFORT SYSTEMS USA INC (NYSE:FIX) has caught the eye of our stock screener as an affordable growth stock. NYSE:FIX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

How We Gauge Growth for NYSE:FIX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:FIX boasts a 8 out of 10:

• FIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 67.35%, which is quite impressive.
• The Earnings Per Share has been growing by 36.79% 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 34.97%.
• FIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.86% yearly.
• The Earnings Per Share is expected to grow by 14.64% on average over the next years. This is quite good.
• FIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.70% yearly.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:FIX scores a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of FIX indicates a somewhat cheap valuation: FIX is cheaper than 61.70% of the companies listed in the same industry.
• FIX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.35.
• FIX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FIX is cheaper than 65.96% of the companies in the same industry.
• FIX has an outstanding profitability rating, which may justify a higher PE ratio.
• FIX's earnings are expected to grow with 14.64% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NYSE:FIX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:FIX has achieved a 8 out of 10:

• FIX has an Altman-Z score of 4.88. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.88, FIX belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
• FIX has a debt to FCF ratio of 0.09. This is a very positive value and a sign of high solvency as it would only need 0.09 years to pay back of all of its debts.
• FIX has a better Debt to FCF ratio (0.09) than 91.49% of its industry peers.
• A Debt/Equity ratio of 0.04 indicates that FIX is not too dependend on debt financing.
• FIX has a Debt to Equity ratio of 0.04. This is amongst the best in the industry. FIX outperforms 87.23% of its industry peers.
• 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.

Profitability Insights: NYSE:FIX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:FIX, the assigned 9 is a significant indicator of profitability:

• The Return On Assets of FIX (11.09%) is better than 85.11% of its industry peers.
• FIX's Return On Equity of 30.65% is amongst the best of the industry. FIX outperforms 85.11% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 28.35%, FIX belongs to the top of the industry, outperforming 95.74% of the companies in the same industry.
• FIX had an Average Return On Invested Capital over the past 3 years of 21.29%. This is significantly above the industry average of 12.03%.
• The 3 year average ROIC (21.29%) for FIX is below the current ROIC(28.35%), indicating increased profibility in the last year.
• The Profit Margin of FIX (7.43%) is better than 80.85% of its industry peers.
• FIX's Profit Margin has improved in the last couple of years.
• FIX's Operating Margin of 10.62% is amongst the best of the industry. FIX outperforms 87.23% of its industry peers.
• FIX's Operating Margin has improved in the last couple of years.
• FIX has a better Gross Margin (21.01%) than 68.09% of its industry peers.
• FIX's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

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.