Comfort Systems (FIX) AI Stock Analysis

• Market Cap: $14.02B
• Dividend Yield: 0.34%
• Average Volume (3M): 548.23K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.86
• Revenue Growth: 31.47%
• EPS Growth: 64.96%
• Country: US
• Employees: 18,300
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 16.67
• Shares Outstanding: 35,274,840
• 10 Day Avg. Volume: 481,648
• 30 Day Avg. Volume: 548,227
• PEG Ratio: 0.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 7.84
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $495.75
• Price Target Upside: 18.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Comfort Systems receives a strong score due to its robust financial performance and positive earnings call insights, showcasing impressive revenue growth and strategic capital allocation. Technical indicators show mixed momentum, and valuation metrics are moderate, suggesting room for cautious optimism.

Positive Factors

Financial Performance

4Q24 results were ahead of expectations across both the top and bottom-lines as revenue and margin performance meaningfully outperformed in both segments.

Growth Prospects

The demand outlook for Comfort Systems USA is strong, driven by cyclical tailwinds in manufacturing and tech/datacenters, which are expected to support continued double-digit organic growth.

Negative Factors

Market Reaction

Despite the quite strong quarterly performance, a negative share price reaction was due to a number of factors including general market weakness and high expectations.

Order Trends

Total orders declined 2% y/y.

Comfort Systems Business Overview & Revenue Model

Company Description

Comfort Systems USA, Inc. (FIX) is a leading provider of comprehensive mechanical contracting services, primarily focusing on heating, ventilation, and air conditioning (HVAC) systems. The company operates across various sectors, including commercial, industrial, and institutional markets. Comfort Systems' core services include the design, installation, maintenance, and repair of HVAC systems, as well as plumbing, electrical, and other mechanical systems. With a network of local companies across the United States, the firm is well-positioned to deliver customized solutions to meet the specific needs of its diverse clientele.

How the Company Makes Money

Comfort Systems USA generates revenue primarily through its mechanical contracting services, which include the design and installation of HVAC systems for new construction and retrofitting projects. The company also earns significant income from maintenance and repair services, which provide a recurring revenue stream. In addition to HVAC services, Comfort Systems offers plumbing, electrical, and other mechanical services, further diversifying its revenue base. Strategic partnerships with major equipment manufacturers and suppliers enhance its service offerings, while its national footprint allows it to undertake large-scale projects and service agreements across various industries. The company's ability to provide comprehensive mechanical solutions and its focus on long-term service contracts contribute significantly to its earnings.

Comfort Systems Financial Statement Overview

Summary

Comfort Systems showcases strong financial performance across all metrics, with impressive revenue and profit growth, a stable balance sheet, and efficient cash flow management. Income Statement Score: 88, Balance Sheet Score: 80, Cash Flow Score: 85.

Income Statement

Comfort Systems has demonstrated strong revenue growth with a 40% increase from 2023 to TTM 2025. The gross profit margin improved to 21.4% TTM from 19% in 2023, indicating enhanced cost efficiency. The net profit margin increased to 8.1% TTM compared to 6.2% in 2023, reflecting improved profitability. Notably, EBIT and EBITDA margins have also seen positive trends, showcasing robust operational performance.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.16 TTM, which is quite manageable. Return on equity has improved to 33.5% TTM, indicating strong profitability relative to shareholder investment. The equity ratio stands at 38.9% TTM, showing a balanced capital structure. Overall, the balance sheet reflects financial stability with moderate leverage.

Cash Flow

Comfort Systems exhibits solid cash flow management with a free cash flow growth rate of 16.8% TTM. The operating cash flow to net income ratio of 1.03 and a free cash flow to net income ratio of 0.85 TTM suggest effective conversion of earnings into cash. The cash flow position supports ongoing operations and potential growth initiatives.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.03B	5.21B	4.14B	3.07B	2.86B
	Gross Profit
1.48B	990.51M	741.61M	563.21M	546.98M
	EBIT
749.37M	418.39M	171.05M	188.44M	128.63M
	EBITDA
817.10M	497.65M	352.45M	282.51M	276.90M
	Net Income Common Stockholders
522.43M	323.40M	245.95M	143.35M	150.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
549.94M	205.15M	57.21M	58.78M	54.90M
	Total Assets
4.71B	3.31B	2.60B	2.21B	1.76B
	Total Debt
308.60M	256.77M	256.25M	514.78M	235.73M
	Net Debt
-241.34M	51.62M	199.03M	456.00M	180.84M
	Total Liabilities
3.01B	2.03B	1.60B	1.40B	1.06B
	Stockholders Equity
1.70B	1.28B	999.92M	805.67M	696.43M
Cash Flow		Free Cash Flow
737.99M	544.73M	253.17M	157.82M	262.38M
	Operating Cash Flow
849.06M	639.57M	301.53M	180.15M	286.51M
	Investing Cash Flow
-343.51M	-193.01M	-97.18M	-246.72M	-207.80M
	Financing Cash Flow
-160.76M	-298.62M	-205.91M	70.45M	-74.60M

Comfort Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 418.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIX, the sentiment is Positive. The current price of 418.05 is above the 20-day moving average (MA) of 354.27, above the 50-day MA of 349.52, and above the 200-day MA of 389.74, indicating a bullish trend. The MACD of 14.74 indicates Negative momentum. The RSI at 67.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIX.

Comfort Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	85 Outperform	$18.46B	19.17	37.25%	0.25%	15.76%	61.64%
ACM	80 Outperform	$13.30B	28.52	26.35%	0.93%	8.89%	669.67%
FIX	78 Outperform	$14.02B	23.85	37.81%	0.34%	31.47%	64.96%
APG	77 Outperform	$10.60B	―	8.59%	―	1.30%	-36.24%
MTZ	76 Outperform	$10.07B	61.96	5.80%	―	2.56%	―
BLD	75 Outperform	$8.73B	14.70	26.09%	―	2.60%	5.15%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%

Comfort Systems Corporate Events

Comfort Systems Highlights Financials and Sustainability

On April 30, 2025, Comfort Systems USA, Inc. released an investor presentation on its website, highlighting its use of non-GAAP financial measures to provide a clearer understanding of its core business operations. The presentation also emphasized the company’s commitment to sustainability, employee well-being, and operational safety, showcasing its efforts in maintaining a positive impact on the environment and society. The company reported a year-to-date revenue of $1.83 billion and a gross profit of $403.4 million for 2025, reflecting its continued growth and financial stability.

Spark’s Take on FIX Stock

According to Spark, TipRanks’ AI Analyst, FIX is a Outperform.

Comfort Systems USA demonstrates strong financial performance, with significant revenue and profit growth, a stable balance sheet, and effective cash flow management. Technical indicators show mixed momentum, while valuation appears moderate. The latest earnings call and corporate events highlight robust performance and strategic initiatives, although investors should be mindful of potential economic uncertainties.

To see Spark’s full report on FIX stock, click here.

Comfort Systems Announces Board Member Resignation

On March 19, 2025, Comfort Systems USA, Inc. announced that Mr. Vance W. Tang will resign from the Board of Directors and all its committees, effective May 16, 2025, as part of his retirement. This change in the board’s composition may impact the company’s strategic direction and governance, potentially affecting stakeholders and the company’s future operations.

Comfort Systems Highlights 2024 Financial Growth and Strategy

On February 21, 2025, Comfort Systems USA, Inc. released an investor presentation to its website, showcasing its financial performance and strategic focus areas. The presentation highlighted the company’s use of non-GAAP financial measures to provide supplemental insights into its operations, noting that these figures should not replace GAAP results. The company reported significant growth in revenue and net income for 2024, emphasizing its strong market position and financial stability. The presentation also discussed potential risks and uncertainties affecting future performance, including economic conditions, labor shortages, and competition.