Comfort Systems (FIX) AI Stock Analysis

• Market Cap: $33.18B
• Dividend Yield: 0.2%
• Average Volume (3M): 778.98K
• Price to Earnings (P/E): 39.8
• Beta (1Y): 2.14
• Revenue Growth: 27.71%
• EPS Growth: 80.54%
• Country: US
• Employees: 18,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 8.25
• Shares Outstanding: 35,271,950
• 10 Day Avg. Volume: 1,285,451
• 30 Day Avg. Volume: 778,983
• PEG Ratio: 0.47
• Price to Book (P/B): 8.88
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 20.51
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 3.45
• Enterprise Value/Gross Profit: 14.68
• Enterprise Value/Ebitda: 23.61
• 1Y Price Target: $1,162.50
• Price Target Upside: 22.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $1,083.00 ▲(13.91% Upside)

Comfort Systems USA's overall stock score is driven by its strong financial performance and positive earnings call results. The company's robust revenue growth, efficient cash flow management, and strategic acquisitions contribute significantly to its high score. However, the valuation suggests the stock is relatively expensive, which slightly offsets the overall score.

Positive Factors

Revenue Growth

The significant revenue growth of 35% year-over-year underscores Comfort Systems' strong market demand and effective business strategies, indicating a robust position in the industry and potential for sustained growth.

Cash Generation

Strong cash generation with over $500 million in free cash flow supports Comfort Systems' ability to invest in growth opportunities, reduce debt, and return capital to shareholders, enhancing long-term financial stability.

Leadership Transition

The appointment of Trent T. McKenna as President and COO reflects strategic succession planning, ensuring leadership continuity and potentially driving sustained operational success and strategic growth initiatives.

Negative Factors

Increased SG&A Expenses

Rising SG&A expenses could pressure profit margins if not managed effectively, potentially impacting long-term profitability and operational efficiency.

Manufacturing Revenue Decline

A decline in manufacturing revenue may indicate challenges in this segment, which could affect overall revenue diversification and growth if not addressed.

Valuation Concerns

High valuation metrics could limit stock price appreciation potential, making the stock less attractive to value-focused investors and potentially impacting future capital raising efforts.

Comfort Systems Business Overview & Revenue Model

Company Description

Comfort Systems USA, Inc. (FIX) is a leading provider of mechanical services and solutions, specializing in HVAC (heating, ventilation, and air conditioning), plumbing, and electrical services primarily for commercial and industrial clients. The company operates through a network of subsidiaries across various regions, focusing on delivering high-quality installation, maintenance, and repair services. Comfort Systems aims to enhance building efficiency and comfort while ensuring compliance with industry standards and regulations.

How the Company Makes Money

Comfort Systems generates revenue through multiple key streams, primarily from the installation and maintenance of HVAC systems, plumbing, and electrical services for commercial buildings. The company operates on a project basis, receiving payments at various stages of project completion, as well as through ongoing service contracts that provide recurring revenue. Additionally, Comfort Systems benefits from partnerships with equipment manufacturers and suppliers, allowing them to offer competitive pricing and innovative solutions to their clients. The company also invests in technology and training, positioning itself to capture emerging opportunities in energy efficiency and sustainable building practices, which contribute to its overall earnings.

Comfort Systems Financial Statement Overview

Summary

Comfort Systems exhibits robust financial performance with strong revenue growth, efficient cash flow management, and a solid balance sheet. The company has demonstrated strong revenue growth with an 8.31% increase in the TTM, supported by improving profit margins and a low debt-to-equity ratio, indicating prudent leverage management.

Income Statement

Comfort Systems has demonstrated strong revenue growth with an 8.31% increase in the TTM, supported by improving gross and net profit margins. The EBIT and EBITDA margins have also shown positive trends, indicating efficient operational management. The company's consistent revenue growth trajectory over the years highlights its robust market position.

Balance Sheet

The balance sheet reflects a healthy financial structure with a low debt-to-equity ratio of 0.18 in the TTM, indicating prudent leverage management. Return on equity is impressive at 43.59%, showcasing effective use of shareholder funds. The equity ratio remains stable, suggesting a strong asset base relative to liabilities.

Cash Flow

Cash flow analysis reveals a significant 42.39% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, reflecting efficient conversion of earnings into cash. The free cash flow to net income ratio further supports the company's ability to generate cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.32B	7.03B	5.21B	4.14B	3.07B	2.86B
Gross Profit	1.95B	1.48B	990.51M	741.61M	563.21M	546.98M
EBITDA	1.22B	817.10M	478.63M	329.30M	264.20M	259.18M
Net Income	837.62M	522.43M	323.40M	245.95M	143.35M	150.14M
Balance Sheet
Total Assets	5.78B	4.71B	3.31B	2.60B	2.21B	1.76B
Cash, Cash Equivalents and Short-Term Investments	881.22M	549.94M	205.15M	57.21M	58.78M	54.90M
Total Debt	423.74M	308.60M	256.77M	389.14M	514.78M	332.89M
Total Liabilities	3.54B	3.01B	2.03B	1.60B	1.40B	1.06B
Stockholders Equity	2.23B	1.70B	1.28B	999.92M	805.67M	696.43M
Cash Flow
Free Cash Flow	798.79M	737.99M	544.73M	253.17M	157.82M	262.38M
Operating Cash Flow	928.28M	849.06M	639.57M	301.53M	180.15M	286.51M
Investing Cash Flow	-275.49M	-343.51M	-193.01M	-97.18M	-246.72M	-207.80M
Financing Cash Flow	-207.85M	-160.76M	-298.62M	-205.91M	70.45M	-74.60M

Comfort Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 950.79
• 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 950.79 is below the 20-day moving average (MA) of 966.03, above the 50-day MA of 934.69, and above the 200-day MA of 645.54, indicating a neutral trend. The MACD of 2.62 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 38.21 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	80 Outperform	$33.18B	39.84	43.84%	0.20%	27.71%	80.54%
PRIM	75 Outperform	$6.76B	24.74	18.56%	0.25%	21.45%	67.31%
EME	73 Outperform	$27.37B	24.59	37.10%	0.16%	14.11%	26.26%
BLD	68 Neutral	$11.98B	21.81	26.18%	―	-1.28%	-0.66%
FLR	64 Neutral	$6.59B	2.07	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MTRX	47 Neutral	$329.90M	-13.80	-16.33%	―	17.16%	24.10%

Comfort Systems Corporate Events

Comfort Systems Announces Key Executive Leadership Transitions

On December 19, 2025, Comfort Systems USA announced a slate of year-end leadership changes, highlighted by the promotion of Executive Vice President and Chief Operating Officer Trent T. McKenna to President and Chief Operating Officer, effective January 1, 2026, with a revised compensation package that includes a higher base salary, an increased bonus opportunity and a substantial long-term incentive award. The company also disclosed that long-serving Senior Vice President, General Counsel and Secretary Laura F. Howell will retire as of December 31, 2025 after more than 11 years with the firm, remaining on as a Senior Executive Advisor in 2026, while Associate General Counsel and Assistant Corporate Secretary Rachel R. Eslicker will step into Howell’s role, moves that underscore Comfort Systems’ ongoing succession planning, leadership continuity and emphasis on a smooth transition for its legal and executive functions.

Comfort Systems Releases Investor Presentation Highlighting Growth

On October 28, 2025, Comfort Systems USA, Inc. released an investor presentation on its website, showcasing financial information using non-GAAP measures to provide insights into its performance. The presentation highlighted the company’s strong market position, with a focus on technology, life sciences, and energy storage sectors, and detailed its financial performance, including a year-to-date revenue of $6.46 billion and a gross profit of $1.52 billion. The company emphasized its history of profitable growth and cash flow, as well as its strategic focus on modular construction and service projects.

Comfort Systems Reports Q3 2025 Financial Results

On October 23, 2025, Comfort Systems USA announced its financial results for the third quarter of 2025, reporting a significant increase in net income to $291.6 million and revenue to $2.45 billion compared to the same period in 2024. The company also achieved a record backlog of $9.38 billion and completed the acquisition of two electrical companies, enhancing its market presence and anticipating over $200 million in additional annual revenue.