COMFORT SYSTEMS USA INC (FIX) Stock Fundamental Analysis
NYSE:FIX - New York Stock Exchange, Inc. - US1999081045 - Common Stock - Currency: USD
FIX gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 52 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 would make FIX suitable 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.
In the past 5 years FIX always reported a positive cash flow from operatings.
1.2 Ratios
FIX's Return On Assets of 13.03% is amongst the best of the industry. FIX outperforms 90.38% of its industry peers.
With an excellent Return On Equity value of 33.51%, FIX belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
FIX's Return On Invested Capital of 30.73% is amongst the best of the industry. FIX outperforms 96.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FIX 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
FIX has a better Profit Margin (8.13%) than 82.69% of its industry peers.
In the last couple of years the Profit Margin of FIX has grown nicely.
The Operating Margin of FIX (11.20%) is better than 82.69% of its industry peers.
FIX's Operating Margin has improved in the last couple of years.
FIX has a Gross Margin of 21.61%. This is in the better half 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
The number of shares outstanding for FIX has been reduced compared to 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 6.89. This indicates that FIX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.89, FIX belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
The Debt to FCF ratio of FIX is 0.13, which is an excellent value as it means it would take FIX, only 0.13 years of fcf income to pay off 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.
FIX has a better Debt to Equity ratio (0.04) than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.13 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.99
WACC10.27%
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 worse Current ratio (1.08) than 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 has a Quick ratio of 1.05. This is in the lower half of the industry: FIX underperforms 63.46% of its industry peers.
FIX does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Revenue has grown by 31.47% in the past year. This is a very strong growth!
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
Based on estimates for the next years, FIX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.74% on average per year.
The Revenue is expected to grow by 8.94% on average over the next years. This is quite good.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FIX is valuated quite expensively with a Price/Earnings ratio of 32.45.
FIX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FIX to the average of the S&P500 Index (27.45), we can say FIX is valued inline with the index average.
The Price/Forward Earnings ratio is 25.70, which means the current valuation is very expensive for FIX.
FIX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FIX to the average of the S&P500 Index (21.90), we can say FIX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.45 | ||
| Fwd PE | 25.7 |
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 | 37.69 | ||
| EV/EBITDA | 19.64 |
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.
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 15.74% in the coming years.
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 0.35%, 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 1.75. FIX pays more dividend than 82.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, FIX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of FIX is nicely growing with an annual growth rate of 24.96%!
FIX has been paying a dividend for at least 10 years, so it has 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
8.06% of the earnings are spent on dividend by FIX. This is a low number and sustainable payout ratio.
FIX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP8.06%
EPS Next 2Y20.04%
EPS Next 3Y15.74%
540.98
+11.08 (+2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners98.27%
Inst Owner Change1.42%
Ins Owners1.41%
Ins Owner Change-1.96%
Market Cap19.08B
Analysts85.45
Price Target524.45 (-3.06%)
Short Float %1.93%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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)0.06%
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)0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.45 | ||
| Fwd PE | 25.7 | ||
| P/S | 2.61 | ||
| P/FCF | 37.69 | ||
| P/OCF | 31.05 | ||
| P/B | 10.74 | ||
| P/tB | 44.41 | ||
| EV/EBITDA | 19.64 |
EPS(TTM)16.67
EY3.08%
EPS(NY)21.05
Fwd EY3.89%
FCF(TTM)14.35
FCFY2.65%
OCF(TTM)17.42
OCFY3.22%
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 | 6.89 |
F-Score9
WACC10.27%
ROIC/WACC2.99
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%