Comfort Systems Usa Inc (FIX) Stock Analysis and Metrics

Sector: Industrials Industry: Engineering & Construction CIK: 0001035983

P/B 15.34

P/E 40.89

P/S 4.12

Market Cap 34.25 Bn

ROIC (Qtr) 35.93

Div Yield % 0.24

Rev 1y % (Qtr) 35.24

Total Debt (Qtr) 394.05 Mn

Debt/Equity (Qtr) 0.18

About

Comfort Systems USA, Inc., also known by its ticker symbol FIX, is a prominent player in the mechanical and electrical contracting services industry in the United States. The company operates through two segments: mechanical and electrical, with the former contributing significantly to its revenue. Comfort Systems USA's main business activities revolve around providing a comprehensive range of services in the mechanical and electrical contracting sector. These services are offered across various locations in the United States, making the company...

Comfort Systems USA, Inc., also known by its ticker symbol FIX, is a prominent player in the mechanical and electrical contracting services industry in the United States. The company operates through two segments: mechanical and electrical, with the former contributing significantly to its revenue.

Comfort Systems USA's main business activities revolve around providing a comprehensive range of services in the mechanical and electrical contracting sector. These services are offered across various locations in the United States, making the company a geographically diverse entity. The mechanical segment, which accounts for approximately 75.8% of the company's revenue, offers services such as HVAC, plumbing, piping, and controls, along with off-site construction, monitoring, and fire protection services. The electrical segment, contributing about 24.2% to the total revenue, focuses on the installation and servicing of electrical systems, including power distribution, lighting, and control systems.

The company generates revenue through the installation of new systems in commercial, industrial, and institutional properties, as well as through the renovation, expansion, maintenance, repair, and replacement of existing systems. Comfort Systems USA caters to a diverse customer base, which includes building owners and developers, property managers, general contractors, architects, and consulting engineers.

Comfort Systems USA holds a competitive edge over its peers due to several factors. The company's size and scale of operations enable it to offer a wide range of services and compete effectively with larger companies. Its geographic diversity allows it to serve a diverse range of customers and compete effectively in different markets. The company's technical expertise and experience in the mechanical and electrical contracting industries enable it to offer high-quality services and compete effectively with other companies. Additionally, its strong relationships with its customers allow it to offer personalized services and compete effectively with other companies.

Comfort Systems USA's customers are spread across various industries, including commercial, industrial, and institutional properties. These customers are located throughout the United States, demonstrating the company's wide reach and diverse customer base.

The brand names and/or trade names of the company's products and services include HVAC services, plumbing services, piping services, controls services, off-site construction services, monitoring services, and fire protection services in the mechanical segment. In the electrical segment, the company offers electrical power distribution services, lighting services, and control services. These services are offered under the Comfort Systems USA banner, a name that has come to signify quality and reliability in the mechanical and electrical contracting services industry.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 928.28M provides robust 2.36x coverage of total debt 394.05M, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 860.52M provide 184.03x coverage of short-term debt 4.68M, demonstrating strong liquidity position and minimal refinancing risk.
Operating cash flow of 928.28M provides strong 45.81x coverage of stock compensation 20.26M, indicating sustainable incentive practices.
Operating cash flow of 928.28M provides exceptional 119.41x coverage of interest expenses 7.77M, showing strong debt service capability.
Strong tangible asset base of 4.42B provides 11.21x coverage of total debt 394.05M, indicating robust asset backing and low credit risk.

Cons

Operating cash flow of 928.28M barely covers its investment activities of (275.49M), with a coverage ratio of -3.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of 928.28M provides thin coverage of dividend payments of (60.12M) with a -15.44 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
Cash reserves of 860.52M provide limited coverage of acquisition spending of (128.59M), which is -6.69x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
Operating cash flow of 928.28M provides insufficient coverage of deferred revenue obligations of 1.73B, which is 0.54x, raising concerns about future service delivery capabilities.
High receivables of 2.70B relative to inventory of 78.83M (34.26 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Peer Comparison

Companies in the Engineering & Construction

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PWR	Quanta Services, Inc.	65.02 Bn	63.86	2.39	6.02 Bn
2	FER	Ferrovial SE	48.37 Bn	14.34	5.08	-
3	FIX	Comfort Systems Usa Inc	34.25 Bn	40.89	4.12	0.39 Bn
4	EME	EMCOR Group, Inc.	28.27 Bn	25.01	1.74	0.42 Bn
5	MTZ	Mastec Inc	17.18 Bn	51.88	1.25	2.77 Bn
6	APG	APi Group Corp	16.45 Bn	105.48	2.15	3.05 Bn
7	J	Jacobs Solutions Inc.	16.43 Bn	56.79	1.37	2.71 Bn
8	ACM	Aecom	13.10 Bn	23.31	0.81	3.23 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	5.92	1.60
EV to Cash from Ops.	36.85	6.21
EV to Debt	86.80	12.02
EV to EBIT	32.00	16.63
EV to EBITDA	27.29	13.11
EV to Free Cash Flow [EV/FCF]	42.55	64.21
EV to Market Cap	1.00	1.27
EV to Revenue	4.11	1.63
Price to Book Value [P/B]	15.34	5.92
Price to Earnings [P/E]	40.89	28.08

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	13.93	2.56
Dividend Payout Ratio %	7.20	17.64
Dividend per Basic Share	1.70	0.24
FCF Dividend Payout Ratio %	7.47	8.25
Interest Coverage	137.48	80.17

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-36.43	-167.27
Cash and Equivalents Growth (1y) %	107.06	637.93
Dividend Growth (1y) %	54.55	2.92
EBIAT Growth (1y) %	78.58	92.73
EBITDA Growth (1y) %	61.64	8.03
EBIT Growth (1y) %	78.81	85.41
EBT Growth (1y) %	79.15	42.19
EPS Growth (1y) %	80.55	43.98
FCF Growth (1y) %	11.58	-20.57
Gross Profit Growth (1y) %	47.84	32.55

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.44	1.14
Cash Payout Ratio	0.06	0.05
Cash Ratio	0.28	0.38
Current Ratio	1.22	1.54
Debt to Equity Ratio	0.18	0.89
Interest Cover Ratio	137.48	80.17
Times Interest Earned	137.48	80.17

Profitability

Metric	Value	Industry
EBITDA Margin %	14.50	0.40
EBIT Margin %	12.84	-2.30
EBT Margin %	12.75	-4.58
Gross Margin %	23.50	20.40
Net Profit Margin %	10.10	-5.95

Comfort Systems Usa Inc (NYSE: FIX)