COMFORT SYSTEMS USA INC (FIX) Stock Fundamental Analysis
NYSE:FIX - New York Stock Exchange, Inc. - US1999081045 - Common Stock - Currency: USD
Taking everything into account, FIX scores 8 out of 10 in our fundamental rating. FIX was compared to 52 industry peers in the Construction & Engineering industry. Both the health and profitability get an excellent rating, making FIX a very profitable company, without any liquidiy or solvency issues. 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.
FIX had positive earnings in each of the past 5 years.
FIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FIX has a Return On Assets of 13.03%. This is amongst the best in the industry. FIX outperforms 90.38% of its industry peers.
Looking at the Return On Equity, with a value of 33.51%, FIX belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.73%, FIX belongs to the best of the industry, outperforming 96.15% 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 above the industry average of 16.67%.
The 3 year average ROIC (21.29%) for FIX is below the current ROIC(30.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 33.51% | ||
| ROIC | 30.73% |
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
Looking at the Profit Margin, with a value of 8.13%, FIX belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
In the last couple of years the Profit Margin of FIX has grown nicely.
Looking at the Operating Margin, with a value of 11.20%, FIX belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.
FIX's Operating Margin has improved in the last couple of years.
FIX's Gross Margin of 21.61% is fine compared to the rest of the industry. FIX outperforms 71.15% of its industry peers.
In the last couple of years the Gross Margin of FIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.2% | ||
| PM (TTM) | 8.13% | ||
| GM | 21.61% |
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.
Compared to 1 year ago, FIX has less shares outstanding
FIX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FIX is higher compared to a year ago.
2.2 Solvency
FIX has an Altman-Z score of 6.84. 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 6.84, FIX belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
FIX has a debt to FCF ratio of 0.13. This is a very positive value and a sign of high solvency as it would only need 0.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.13, FIX belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
A Debt/Equity ratio of 0.04 indicates that FIX is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.04, FIX belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 6.84 |
ROIC/WACC2.97
WACC10.34%
2.3 Liquidity
A Current Ratio of 1.08 indicates that FIX should not have too much problems paying its short term obligations.
FIX has a Current ratio of 1.08. This is in the lower half of the industry: FIX underperforms 67.31% of its industry peers.
FIX has a Quick Ratio of 1.05. This is a normal value and indicates that FIX is financially healthy and should not expect problems in meeting its short term obligations.
FIX's Quick ratio of 1.05 is on the low side compared to the rest of the industry. FIX is outperformed by 63.46% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.21% over the past year.
Measured over the past years, FIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.79% on average per year.
FIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.47%.
The Revenue has been growing by 21.86% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)68.21%
EPS 3Y54.78%
EPS 5Y36.79%
EPS Q2Q%76.58%
Revenue 1Y (TTM)31.47%
Revenue growth 3Y31.74%
Revenue growth 5Y21.86%
Sales Q2Q%19.15%
3.2 Future
The Earnings Per Share is expected to grow by 15.74% on average over the next years. This is quite good.
Based on estimates for the next years, FIX will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
EPS Next Y34.41%
EPS Next 2Y20.04%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue Next Year12.12%
Revenue Next 2Y9.44%
Revenue Next 3Y8.94%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.36, which means the current valuation is very expensive for FIX.
FIX's Price/Earnings ratio is in line with the industry average.
FIX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
A Price/Forward Earnings ratio of 25.63 indicates a quite expensive valuation of FIX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FIX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FIX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 25.63 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FIX.
The rest of the industry has a similar Price/Free Cash Flow ratio as FIX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.59 | ||
| EV/EBITDA | 19.37 |
4.3 Compensation for Growth
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 15.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.94
PEG (5Y)0.88
EPS Next 2Y20.04%
EPS Next 3Y15.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, FIX is not a good candidate for dividend investing.
FIX's Dividend Yield is rather good when compared to the industry average which is at 1.70. FIX pays more dividend than 82.69% of the companies in the same industry.
With a Dividend Yield of 0.33, FIX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
The dividend of FIX is nicely growing with an annual growth rate of 24.96%!
FIX has paid a dividend for at least 10 years, which is a reliable track record.
FIX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.96%
Div Incr Years12
Div Non Decr Years19
5.3 Sustainability
FIX pays out 8.06% of its income as dividend. This is a sustainable payout ratio.
The dividend of FIX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP8.06%
EPS Next 2Y20.04%
EPS Next 3Y15.74%
539.5
+5.73 (+1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change-0.12%
Ins Owners1.41%
Ins Owner Change-1.96%
Market Cap19.03B
Analysts85
Price Target524.45 (-2.79%)
Short Float %1.93%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend1.2
Dividend Growth(5Y)24.96%
DP8.06%
Div Incr Years12
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.23%
Min EPS beat(2)9.62%
Max EPS beat(2)26.84%
EPS beat(4)4
Avg EPS beat(4)14.08%
Min EPS beat(4)1.91%
Max EPS beat(4)26.84%
EPS beat(8)8
Avg EPS beat(8)18.62%
EPS beat(12)12
Avg EPS beat(12)19.8%
EPS beat(16)14
Avg EPS beat(16)16.9%
Revenue beat(2)2
Avg Revenue beat(2)3.62%
Min Revenue beat(2)2.65%
Max Revenue beat(2)4.58%
Revenue beat(4)3
Avg Revenue beat(4)2.75%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)6.24%
Revenue beat(8)7
Avg Revenue beat(8)3.14%
Revenue beat(12)11
Avg Revenue beat(12)4.24%
Revenue beat(16)14
Avg Revenue beat(16)4.18%
PT rev (1m)2.7%
PT rev (3m)4.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.32%
EPS NY rev (1m)0.04%
EPS NY rev (3m)6.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.36 | ||
| Fwd PE | 25.63 | ||
| P/S | 2.6 | ||
| P/FCF | 37.59 | ||
| P/OCF | 30.96 | ||
| P/B | 10.71 | ||
| P/tB | 44.29 | ||
| EV/EBITDA | 19.37 |
EPS(TTM)16.67
EY3.09%
EPS(NY)21.05
Fwd EY3.9%
FCF(TTM)14.35
FCFY2.66%
OCF(TTM)17.42
OCFY3.23%
SpS207.59
BVpS50.38
TBVpS12.18
PEG (NY)0.94
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.03% | ||
| ROE | 33.51% | ||
| ROCE | 38.01% | ||
| ROIC | 30.73% | ||
| ROICexc | 33.95% | ||
| ROICexgc | 109.45% | ||
| OM | 11.2% | ||
| PM (TTM) | 8.13% | ||
| GM | 21.61% | ||
| FCFM | 6.91% |
ROA(3y)10.11%
ROA(5y)9.07%
ROE(3y)26.85%
ROE(5y)23.98%
ROIC(3y)21.29%
ROIC(5y)17.85%
ROICexc(3y)25.84%
ROICexc(5y)20.83%
ROICexgc(3y)114.86%
ROICexgc(5y)85.93%
ROCE(3y)26.34%
ROCE(5y)22.08%
ROICexcg growth 3Y83.67%
ROICexcg growth 5Y43.43%
ROICexc growth 3Y49.24%
ROICexc growth 5Y19.84%
OM growth 3Y20.43%
OM growth 5Y11.4%
PM growth 3Y16.81%
PM growth 5Y11.21%
GM growth 3Y4.66%
GM growth 5Y1.83%
F-Score9
Asset Turnover1.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 75% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.7% | ||
| Profit Quality | 85.02% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 6.84 |
F-Score9
WACC10.34%
ROIC/WACC2.97
Cap/Depr(3y)84.02%
Cap/Depr(5y)64.84%
Cap/Sales(3y)1.52%
Cap/Sales(5y)1.23%
Profit Quality(3y)137.55%
Profit Quality(5y)139.51%
High Growth Momentum
Growth
EPS 1Y (TTM)68.21%
EPS 3Y54.78%
EPS 5Y36.79%
EPS Q2Q%76.58%
EPS Next Y34.41%
EPS Next 2Y20.04%
EPS Next 3Y15.74%
EPS Next 5YN/A
Revenue 1Y (TTM)31.47%
Revenue growth 3Y31.74%
Revenue growth 5Y21.86%
Sales Q2Q%19.15%
Revenue Next Year12.12%
Revenue Next 2Y9.44%
Revenue Next 3Y8.94%
Revenue Next 5YN/A
EBIT growth 1Y70.76%
EBIT growth 3Y58.65%
EBIT growth 5Y35.75%
EBIT Next Year48.05%
EBIT Next 3Y17.04%
EBIT Next 5YN/A
FCF growth 1Y63.81%
FCF growth 3Y67.22%
FCF growth 5Y46.28%
OCF growth 1Y68.5%
OCF growth 3Y67.66%
OCF growth 5Y43%