Comfort Systems (FIX) AI Stock Analysis

• Market Cap: $24.82B
• Dividend Yield: 0.24%
• Average Volume (3M): 436.28K
• Price to Earnings (P/E): 35.9
• Beta (1Y): 1.90
• Revenue Growth: 26.33%
• EPS Growth: 63.32%
• Country: US
• Employees: 18,300
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): 6.53
• Shares Outstanding: 35,281,452
• 10 Day Avg. Volume: 367,531
• 30 Day Avg. Volume: 436,282
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 10.95
• Enterprise Value/Ebitda: 18.50
• 1Y Price Target: $736.60
• Price Target Upside: 5.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 81 Outperform
• Price Target: $802.00 ▲(14.46% Upside)

Comfort Systems USA demonstrates a robust financial performance with strong revenue and profit growth, supported by positive earnings call sentiment. Technical indicators show bullish momentum, although valuation metrics suggest the stock may be overvalued. The company's strategic initiatives and strong backlog position it well for future growth, despite economic uncertainties.

Positive Factors

Revenue Growth

2Q25 revenue was ahead of expectations and increased 20% year-over-year.

Technology Market Performance

The technology end market increased 66% year-over-year and accounted for 43% of sales, primarily due to data centers.

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.

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 generates revenue primarily through the installation and servicing of HVAC systems. Key revenue streams include residential HVAC services, commercial system installations, and ongoing maintenance contracts for both new and existing clients. Additionally, the company benefits from energy efficiency upgrades and retrofitting projects, which are increasingly in demand as businesses and homeowners seek to reduce energy costs. Significant partnerships with manufacturers of HVAC equipment and technology providers also contribute to its earnings, enabling Comfort Systems to offer cutting-edge products and solutions to its customers.

Comfort Systems Financial Statement Overview

Summary

Comfort Systems shows strong financial performance with consistent revenue and profit growth, supported by solid operational margins. The company maintains a sound balance sheet with manageable debt levels and good equity strength. Cash flows are robust, enhancing the company's ability to fund operations and growth initiatives.

Income Statement

Comfort Systems has demonstrated strong revenue growth with a notable increase from $2.86 billion in 2020 to $7.68 billion TTM (Trailing-Twelve-Months) in 2025. Gross profit and net profit margins are robust, showing efficiency in managing costs. The EBIT and EBITDA margins have improved consistently, reflecting better operational performance. Revenue growth rate has been impressive year-on-year, indicating a strong market position.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, showing prudent financial leverage. Stockholders' equity has been increasing, supporting a strong equity ratio. However, the return on equity, while positive, indicates room for improvement in efficiently utilizing shareholders' funds.

Cash Flow

Operating cash flows have been consistently positive and growing, allowing for substantial free cash flow after capital expenditures. The free cash flow to net income ratio suggests effective cash generation relative to earnings. However, the operating cash flow to net income ratio has seen some fluctuations, highlighting potential variations in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.68B	7.03B	5.21B	4.14B	3.07B	2.86B
Gross Profit	1.73B	1.48B	990.51M	741.61M	563.21M	546.98M
EBITDA	1.02B	817.10M	478.63M	329.30M	264.20M	259.18M
Net Income	692.24M	522.43M	323.40M	245.95M	143.35M	150.14M
Balance Sheet
Total Assets	5.06B	4.71B	3.31B	2.60B	2.21B	1.76B
Cash, Cash Equivalents and Short-Term Investments	331.71M	549.94M	205.15M	57.21M	58.78M	54.90M
Total Debt	283.65M	308.60M	256.77M	389.14M	514.78M	332.89M
Total Liabilities	3.09B	3.01B	2.03B	1.60B	1.40B	1.06B
Stockholders Equity	1.97B	1.70B	1.28B	999.92M	805.67M	696.43M
Cash Flow
Free Cash Flow	560.97M	737.99M	544.73M	253.17M	157.82M	262.38M
Operating Cash Flow	677.19M	849.06M	639.57M	301.53M	180.15M	286.51M
Investing Cash Flow	-244.06M	-343.51M	-193.01M	-97.18M	-246.72M	-207.80M
Financing Cash Flow	-300.83M	-160.76M	-298.62M	-205.91M	70.45M	-74.60M

Comfort Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 700.69
• 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 700.69 is above the 20-day moving average (MA) of 697.19, above the 50-day MA of 625.84, and above the 200-day MA of 475.36, indicating a bullish trend. The MACD of 20.61 indicates Positive momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 55.31 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
FIX	81 Outperform	$24.82B	35.90	40.09%	0.24%	26.33%	63.32%
BLD	78 Outperform	$11.84B	20.73	26.41%	―	-0.77%	4.34%
PRIM	77 Outperform	$6.40B	26.34	17.01%	0.26%	15.08%	55.10%
EME	76 Outperform	$27.75B	25.75	38.14%	0.16%	13.77%	37.96%
MTRX	64 Neutral	$417.75M	―	-14.26%	―	-0.29%	-6.77%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%
FLR	54 Neutral	$6.63B	1.72	102.24%	―	3.62%	943.43%

Comfort Systems Corporate Events

Comfort Systems Expands Credit Facility to $1.1 Billion

On August 27, 2025, Comfort Systems USA, Inc. entered into an amended and restated senior secured revolving credit facility with Wells Fargo Bank and a syndicate of lenders, increasing its revolving line of credit from $850 million to $1.1 billion. This new facility, which matures on October 1, 2030, includes options for further credit increases and imposes financial covenants on the company, potentially impacting its financial flexibility and strategic operations.

Comfort Systems Releases Investor Presentation July 2025

On July 29, 2025, Comfort Systems USA, Inc. released an investor presentation on its website, which includes non-GAAP financial measures to provide supplemental insights into its core business performance. The company emphasizes that these measures should not replace GAAP results. The presentation highlights the company’s strong market presence in sectors such as technology, life sciences, and healthcare, and discusses its financial strength, including positive cash flow and increased dividends. The company also outlines its commitment to sustainability and employee well-being, showcasing initiatives like the Talent Advisory Group and comprehensive support programs for employees.

Comfort Systems Reports Strong Q2 2025 Results

On July 24, 2025, Comfort Systems USA reported its second quarter results for the period ending June 30, 2025, showcasing a significant increase in net income and revenue compared to the previous year. The company achieved a net income of $230.8 million, or $6.53 per diluted share, a substantial rise from $134.0 million, or $3.74 per diluted share, in the second quarter of 2024. Revenue also increased to $2.17 billion from $1.81 billion in the previous year. The company’s backlog as of June 30, 2025, reached $8.12 billion, reflecting strong market demand and a robust pipeline, which positions Comfort Systems USA optimistically for continued success into 2026.