COMFORT SYSTEMS USA INC (FIX) Stock Fundamental Analysis
NYSE:FIX - New York Stock Exchange, Inc. - US1999081045 - Common Stock - Currency: USD
Overall FIX gets a fundamental rating of 8 out of 10. We evaluated FIX against 47 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes FIX very considerable 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.
Each year in the past 5 years FIX has been profitable.
In the past 5 years FIX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FIX (11.09%) is better than 82.98% of its industry peers.
FIX has a Return On Equity of 30.65%. This is amongst the best in the industry. FIX outperforms 82.98% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 30.65% | ||
| ROIC | 28.35% |
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
With an excellent Profit Margin value of 7.43%, FIX belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
In the last couple of years the Profit Margin of FIX has grown nicely.
With an excellent Operating Margin value of 10.62%, FIX belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
FIX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 21.01%, FIX is doing good in the industry, outperforming 68.09% of the companies in the same industry.
In the last couple of years the Gross Margin of FIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.62% | ||
| PM (TTM) | 7.43% | ||
| GM | 21.01% |
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
FIX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, FIX has less shares outstanding
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
An Altman-Z score of 4.85 indicates that FIX is not in any danger for bankruptcy at the moment.
The Altman-Z score of FIX (4.85) is better than 82.98% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.09, FIX belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
FIX has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.04, FIX belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.09 | ||
| Altman-Z | 4.85 |
ROIC/WACC2.97
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.08 indicates that FIX should not have too much problems paying its short term obligations.
FIX's Current ratio of 1.08 is on the low side compared to the rest of the industry. FIX is outperformed by 72.34% of its industry peers.
A Quick Ratio of 1.06 indicates that FIX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.06, FIX is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
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 | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 67.35% over the past year.
FIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.79% yearly.
Looking at the last year, FIX shows a very strong growth in Revenue. The Revenue has grown by 34.97%.
Measured over the past years, FIX shows a very strong growth in Revenue. The Revenue has been growing by 21.86% on average per year.
EPS 1Y (TTM)67.35%
EPS 3Y54.78%
EPS 5Y36.79%
EPS Q2Q%60.39%
Revenue 1Y (TTM)34.97%
Revenue growth 3Y31.74%
Revenue growth 5Y21.86%
Sales Q2Q%37.58%
3.2 Future
The Earnings Per Share is expected to grow by 14.64% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.89% on average over the next years. This is quite good.
EPS Next Y18.11%
EPS Next 2Y14.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.23%
Revenue Next 2Y9.06%
Revenue Next 3Y8.89%
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
A Price/Earnings ratio of 22.19 indicates a rather expensive valuation of FIX.
FIX's Price/Earnings ratio is a bit cheaper when compared to the industry. FIX is cheaper than 61.70% of the companies 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.
A Price/Forward Earnings ratio of 18.79 indicates a rather expensive valuation of FIX.
The rest of the industry has a similar Price/Forward Earnings ratio as FIX.
When comparing the Price/Forward Earnings ratio of FIX to the average of the S&P500 Index (22.10), we can say FIX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 18.79 |
4.2 Price Multiples
FIX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, FIX is valued a bit cheaper than 63.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 12.38 |
4.3 Compensation for Growth
FIX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FIX may justify a higher PE ratio.
A more expensive valuation may be justified as FIX's earnings are expected to grow with 14.64% in the coming years.
PEG (NY)1.23
PEG (5Y)0.6
EPS Next 2Y14.64%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, FIX is not a good candidate for dividend investing.
The stock price of FIX dropped by -34.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.03, FIX pays a better dividend. On top of this FIX pays more dividend than 80.85% of the companies listed in the same industry.
With a Dividend Yield of 0.49, FIX pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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 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 8.19% of its income as dividend. This is a sustainable payout ratio.
FIX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.19%
EPS Next 2Y14.64%
EPS Next 3YN/A
324.24
-3.86 (-1.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change2.7%
Ins Owners1.45%
Ins Owner Change-5.54%
Market Cap11.53B
Analysts85.45
Price Target502.86 (55.09%)
Short Float %2.12%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1.2
Dividend Growth(5Y)24.96%
DP8.19%
Div Incr Years12
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.76%
Min EPS beat(2)1.91%
Max EPS beat(2)9.62%
EPS beat(4)4
Avg EPS beat(4)15.42%
Min EPS beat(4)1.91%
Max EPS beat(4)32.19%
EPS beat(8)8
Avg EPS beat(8)20.48%
EPS beat(12)12
Avg EPS beat(12)18.33%
EPS beat(16)14
Avg EPS beat(16)16.44%
Revenue beat(2)1
Avg Revenue beat(2)1.06%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)4.58%
Revenue beat(4)3
Avg Revenue beat(4)2.79%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)6.24%
Revenue beat(8)7
Avg Revenue beat(8)3.73%
Revenue beat(12)11
Avg Revenue beat(12)4.54%
Revenue beat(16)13
Avg Revenue beat(16)3.76%
PT rev (1m)-6.83%
PT rev (3m)-0.37%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)7.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.75%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 18.79 | ||
| P/S | 1.64 | ||
| P/FCF | 15.62 | ||
| P/OCF | 13.58 | ||
| P/B | 6.76 | ||
| P/tB | 29.18 | ||
| EV/EBITDA | 12.38 |
EPS(TTM)14.61
EY4.51%
EPS(NY)17.26
Fwd EY5.32%
FCF(TTM)20.76
FCFY6.4%
OCF(TTM)23.88
OCFY7.37%
SpS197.68
BVpS47.95
TBVpS11.11
PEG (NY)1.23
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 30.65% | ||
| ROCE | 35.07% | ||
| ROIC | 28.35% | ||
| ROICexc | 38.23% | ||
| ROICexgc | 224.56% | ||
| OM | 10.62% | ||
| PM (TTM) | 7.43% | ||
| GM | 21.01% | ||
| FCFM | 10.5% |
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-Score6
Asset Turnover1.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.09 | ||
| Debt/EBITDA | 0.07 | ||
| Cap/Depr | 76.35% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 116.11 | ||
| Cash Conversion | 95.2% | ||
| Profit Quality | 141.26% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 4.85 |
F-Score6
WACC9.54%
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)67.35%
EPS 3Y54.78%
EPS 5Y36.79%
EPS Q2Q%60.39%
EPS Next Y18.11%
EPS Next 2Y14.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)34.97%
Revenue growth 3Y31.74%
Revenue growth 5Y21.86%
Sales Q2Q%37.58%
Revenue Next Year11.23%
Revenue Next 2Y9.06%
Revenue Next 3Y8.89%
Revenue Next 5YN/A
EBIT growth 1Y79.37%
EBIT growth 3Y58.65%
EBIT growth 5Y35.75%
EBIT Next Year33.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.48%
FCF growth 3Y67.22%
FCF growth 5Y46.28%
OCF growth 1Y32.75%
OCF growth 3Y67.66%
OCF growth 5Y43%