Comfort Systems (FIX) AI Stock Analysis

• Market Cap: $18.01B
• Dividend Yield: 0.3%
• Average Volume (3M): 349.85K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 1.83
• Revenue Growth: 31.47%
• EPS Growth: 64.96%
• Country: US
• Employees: 18,300
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 4.75
• Shares Outstanding: 35,274,840
• 10 Day Avg. Volume: 358,673
• 30 Day Avg. Volume: 349,854
• PEG Ratio: 0.23
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.33
• Enterprise Value/Market Cap: 0.24
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 1.35
• 1Y Price Target: $507.33
• Price Target Upside: 2.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $529.00 ▲(6.50%Upside)

Comfort Systems USA scores a 79, driven by strong financial performance and positive earnings call sentiment. While technical indicators are favorable, valuation concerns with a high P/E ratio and low dividend yield slightly temper enthusiasm. Strategic corporate actions further bolster the outlook.

Positive Factors

Earnings 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 Potential

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.

Market Position

The company's datacenter business is well-positioned to gain market share due to its modular capabilities, amid rising datacenter construction driven by Generative AI.

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 Performance

Total orders declined 2% y/y.

Comfort Systems Business Overview & Revenue Model

Company Description

Comfort Systems USA, Inc. provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States. It engages in the design, engineering, integration, installation, and start-up of mechanical, electrical, and plumbing (MEP) systems; and renovation, expansion, maintenance, monitoring, repair, and replacement of existing buildings. The company offers its services for heating, ventilation, and air conditioning (HVAC) systems, as well as plumbing, piping and controls, off-site construction, electrical, monitoring, and fire protection. It serves building owners and developers, general contractors, architects, consulting engineers, and property managers in the commercial, industrial, and institutional MEP markets. Comfort Systems USA, Inc. was founded in 1917 and is headquartered in Houston, Texas.

How the Company Makes Money

Comfort Systems USA makes money primarily through project-based contracts and service agreements with commercial and industrial clients. Revenue is generated from the design, installation, and ongoing maintenance of HVAC, plumbing, and electrical systems. The company benefits from both new construction projects and retrofitting or upgrading existing systems for enhanced energy efficiency. In addition to installation revenue, Comfort Systems USA derives significant income from long-term service contracts, providing regular maintenance and repair services to ensure system reliability and performance. Strategic partnerships with manufacturers and suppliers also help the company to optimize costs and improve service delivery, contributing to its earnings.

Comfort Systems Financial Statement Overview

Summary

Comfort Systems showcases strong financial performance with robust revenue and profit growth, a stable balance sheet, and efficient cash flow management. The company is well-positioned within the Engineering & Construction industry, demonstrating growth potential and financial stability.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.32B	7.03B	5.21B	4.14B	3.07B	2.86B
	Gross Profit
1.57B	1.48B	990.51M	741.61M	563.21M	546.98M
	EBIT
822.40M	749.37M	418.39M	171.05M	188.44M	128.63M
	EBITDA
913.69M	818.69M	497.65M	352.45M	282.51M	276.90M
	Net Income Common Stockholders
595.40M	522.43M	323.40M	245.95M	143.35M	150.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
204.76M	549.94M	205.15M	57.21M	58.78M	54.90M
	Total Assets
4.57B	4.71B	3.31B	2.60B	2.21B	1.76B
	Total Debt
278.21M	308.60M	256.77M	256.25M	514.78M	235.73M
	Net Debt
73.45M	-241.34M	51.62M	199.03M	456.00M	180.84M
	Total Liabilities
2.79B	3.01B	2.03B	1.60B	1.40B	1.06B
	Stockholders Equity
1.78B	1.70B	1.28B	999.92M	805.67M	696.43M
Cash Flow		Free Cash Flow
506.22M	737.99M	544.73M	253.17M	157.82M	262.38M
	Operating Cash Flow
614.55M	849.06M	639.57M	301.53M	180.15M	286.51M
	Investing Cash Flow
-218.64M	-343.51M	-193.01M	-97.18M	-246.72M	-207.80M
	Financing Cash Flow
-291.94M	-160.76M	-298.62M	-205.91M	70.45M	-74.60M

Comfort Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 496.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 496.7 is above the 20-day moving average (MA) of 481.55, above the 50-day MA of 417.95, and above the 200-day MA of 410.81, indicating a bullish trend. The MACD of 21.16 indicates Positive momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.32 is Neutral, 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	81 Outperform	$20.85B	20.59	37.76%	0.21%	14.30%	49.19%
ACM	80 Outperform	$14.69B	24.22	28.07%	0.94%	4.55%	―
FIX	79 Outperform	$18.01B	30.62	37.81%	0.30%	31.47%	64.96%
BLD	76 Outperform	$8.85B	15.66	24.59%	―	1.46%	-0.37%
APG	76 Outperform	$13.38B	93.47	9.09%	―	3.20%	―
MTZ	73 Outperform	$12.50B	58.49	7.70%	―	3.03%	―
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Comfort Systems Corporate Events

Comfort Systems Expands Stock Repurchase Program

On May 16, 2025, Comfort Systems USA held its Annual Meeting of Stockholders, achieving a 92.05% quorum. The meeting included the election of board members, ratification of Deloitte & Touche LLP as the independent accounting firm, and an advisory vote on executive compensation. Additionally, on May 22, 2025, the company announced an amendment to its stock repurchase program, allowing for the acquisition of up to 1,000,000 additional shares. This move aims to enhance shareholder value and is expected to be financed with available cash, with repurchases made at the company’s discretion based on market conditions.

The most recent analyst rating on (FIX) stock is a Buy with a $370.00 price target. To see the full list of analyst forecasts on Comfort Systems stock, see the FIX Stock Forecast page.

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.

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.