COMFORT SYSTEMS USA INC (FIX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FIX - US1999081045 - Common Stock
1138.85 USD
+11.3 (+1%)
FIX gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 55 industry peers in the Construction & Engineering industry. FIX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FIX is growing strongly while it is still valued neutral. This is a good combination! These ratings could make FIX a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year FIX was profitable.
- FIX had a positive operating cash flow in the past year.
- In the past 5 years FIX has always been profitable.
- FIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of FIX (14.50%) is better than 90.91% of its industry peers.
- With an excellent Return On Equity value of 37.50%, FIX belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
- FIX has a better Return On Invested Capital (32.75%) than 90.91% 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 15.97%.
- The last Return On Invested Capital (32.75%) for FIX is above the 3 year average (21.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.5% | ||
| ROE | 37.5% | ||
| ROIC | 32.75% |
ROA(3y)10.11%
ROA(5y)9.07%
ROE(3y)26.85%
ROE(5y)23.98%
ROIC(3y)21.29%
ROIC(5y)17.85%
1.3 Margins
- FIX has a better Profit Margin (10.06%) than 85.45% of its industry peers.
- In the last couple of years the Profit Margin of FIX has grown nicely.
- With an excellent Operating Margin value of 13.36%, FIX belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
- In the last couple of years the Operating Margin of FIX has grown nicely.
- FIX has a Gross Margin of 23.49%. This is in the better half of the industry: FIX outperforms 70.91% of its industry peers.
- In the last couple of years the Gross Margin of FIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.36% | ||
| PM (TTM) | 10.06% | ||
| GM | 23.49% |
OM growth 3Y20.43%
OM growth 5Y11.4%
PM growth 3Y16.81%
PM growth 5Y11.21%
GM growth 3Y4.66%
GM growth 5Y1.83%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FIX is creating value.
- The number of shares outstanding for FIX has been reduced compared to 1 year ago.
- Compared to 5 years ago, FIX has less shares outstanding
- Compared to 1 year ago, FIX has a worse debt to assets ratio.
2.2 Solvency
- FIX has an Altman-Z score of 9.50. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 9.50, FIX belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
- FIX has a debt to FCF ratio of 0.17. This is a very positive value and a sign of high solvency as it would only need 0.17 years to pay back of all of its debts.
- FIX's Debt to FCF ratio of 0.17 is amongst the best of the industry. FIX outperforms 90.91% 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 83.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.17 | ||
| Altman-Z | 9.5 |
ROIC/WACC3.12
WACC10.5%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that FIX should not have too much problems paying its short term obligations.
- FIX has a Current ratio of 1.22. This is comparable to the rest of the industry: FIX outperforms 49.09% of its industry peers.
- FIX has a Quick Ratio of 1.20. This is a normal value and indicates that FIX is financially healthy and should not expect problems in meeting its short term obligations.
- FIX has a Quick ratio (1.20) which is in line with 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- FIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.72%, which is quite impressive.
- FIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.79% yearly.
- FIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.71%.
- FIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.86% yearly.
EPS 1Y (TTM)80.72%
EPS 3Y54.78%
EPS 5Y36.79%
EPS Q2Q%101.71%
Revenue 1Y (TTM)27.71%
Revenue growth 3Y31.74%
Revenue growth 5Y21.86%
Sales Q2Q%35.24%
3.2 Future
- FIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.50% yearly.
- The Revenue is expected to grow by 17.40% on average over the next years. This is quite good.
EPS Next Y81.45%
EPS Next 2Y45.89%
EPS Next 3Y34.5%
EPS Next 5YN/A
Revenue Next Year26.86%
Revenue Next 2Y21.09%
Revenue Next 3Y17.4%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 48.22, which means the current valuation is very expensive for FIX.
- The rest of the industry has a similar Price/Earnings ratio as FIX.
- The average S&P500 Price/Earnings ratio is at 27.25. FIX is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 36.63, which means the current valuation is very expensive for FIX.
- FIX's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, FIX is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.22 | ||
| Fwd PE | 36.63 |
4.2 Price Multiples
- FIX's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.29 | ||
| EV/EBITDA | 31.2 |
4.3 Compensation for Growth
- FIX's 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.
- A more expensive valuation may be justified as FIX's earnings are expected to grow with 34.50% in the coming years.
PEG (NY)0.59
PEG (5Y)1.31
EPS Next 2Y45.89%
EPS Next 3Y34.5%
5. Dividend
5.1 Amount
- FIX has a yearly dividend return of 0.21%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.44, FIX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, FIX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
5.2 History
- On average, the dividend of FIX grows each year by 24.96%, which is quite nice.
- FIX has paid a dividend for at least 10 years, which is a reliable track record.
- FIX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.96%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
- 7.18% of the earnings are spent on dividend by FIX. This is a low number and sustainable payout ratio.
- FIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.18%
EPS Next 2Y45.89%
EPS Next 3Y34.5%
COMFORT SYSTEMS USA INC / FIX FAQ
Can you provide the ChartMill fundamental rating for COMFORT SYSTEMS USA INC?
ChartMill assigns a fundamental rating of 8 / 10 to FIX.
What is the valuation status of COMFORT SYSTEMS USA INC (FIX) stock?
ChartMill assigns a valuation rating of 4 / 10 to COMFORT SYSTEMS USA INC (FIX). This can be considered as Fairly Valued.
What is the profitability of FIX stock?
COMFORT SYSTEMS USA INC (FIX) has a profitability rating of 9 / 10.
What is the valuation of COMFORT SYSTEMS USA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COMFORT SYSTEMS USA INC (FIX) is 48.22 and the Price/Book (PB) ratio is 17.98.
How financially healthy is COMFORT SYSTEMS USA INC?
The financial health rating of COMFORT SYSTEMS USA INC (FIX) is 9 / 10.