Comfort Systems USA Inc (FIX) stock analysis

P/E below its 5-year median

Comfort Systems USA's P/E of 25.1 is below its own 5-year median of 28.6.

P/E above the industry

Comfort Systems USA's P/E of 25.1 is above the Construction Special Trade Contractors median of 25.1.

EV/EBITDA above its 5-year median

Comfort Systems USA's EV/EBITDA of 38.9 is above its 5-year median of 21.7.

P/B above the industry

Comfort Systems USA's price-to-book of 12.19 is above the Construction Special Trade Contractors median of 3.14.

Trading above fair value

The share price of $1161.63 is above our fair value estimate of $801.15.

Margin of safety under 20%

The price is 45.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -23.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 61.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 94.8% over the last twelve months, against a 5-year average of 46.8% a year.

Growing faster than the industry

Revenue grew 50.7% over the last twelve months; the Construction Special Trade Contractors median is 10.2%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 11.3% over the last twelve months, against 23.5% a year earlier.

Return on equity over 15%

Return on equity was 58.6% over the last twelve months and averaged 31.8% over five years.

Return on capital over 10%

Return on invested capital was 38.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Comfort Systems USA's return on equity of 58.6% is above the Construction Special Trade Contractors median of -1.8%.

Earnings grew over 5 years

Net income grew 46.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 13.0% over the last twelve months, against a 5-year average of 16.0%.

Net margin above the industry

Comfort Systems USA's net margin of 13.0% is above the Construction Special Trade Contractors median of -7.4%.

Low debt

Debt is 1.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 33.8% five years ago to 1.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 6068% of total debt.

Interest well covered

Operating income covers interest expense 125.1 times.

Short-term assets cover short-term debts

Current assets are 1.15 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Comfort Systems USA paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Comfort Systems USA yields 0.3%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 6.5% of net income.

Covered by free cash flow

Dividends take 4.3% of free cash flow.