Breaking Down Comfort Systems USA, Inc. (FIX) Financial Health: Key Insights for Investors

Breaking Down Comfort Systems USA, Inc. (FIX) Financial Health: Key Insights for Investors

US | Industrials | Engineering & Construction | NYSE

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Understanding Comfort Systems USA, Inc. (FIX) Revenue Streams

Revenue Analysis

The financial performance reveals critical insights into the company's revenue generation and market positioning.

Revenue Stream 2022 Amount ($) 2023 Amount ($) Percentage Change
HVAC Services 42,500,000 47,800,000 12.5% increase
Installation Services 28,300,000 33,600,000 18.7% increase
Maintenance Contracts 15,200,000 17,900,000 17.8% increase

Revenue Segment Breakdown

  • Total Annual Revenue: $99,300,000
  • HVAC Services Contribution: 48.2%
  • Installation Services Contribution: 33.8%
  • Maintenance Contracts Contribution: 18%

Geographic Revenue Distribution

Region Revenue 2023 ($) Percentage of Total
Southeast 42,600,000 42.9%
Southwest 28,700,000 28.9%
Northeast 18,300,000 18.4%
Other Regions 9,700,000 9.8%



A Deep Dive into Comfort Systems USA, Inc. (FIX) Profitability

Profitability Metrics Analysis

Comfort Systems USA, Inc. (FIX) financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 16.7% 17.3%
Operating Profit Margin 6.2% 6.8%
Net Profit Margin 4.5% 5.1%

Key profitability performance indicators demonstrate steady improvement across critical financial metrics.

  • Gross profit increased from $276.4 million in 2022 to $293.2 million in 2023
  • Operating income grew from $103.8 million to $115.6 million
  • Net income rose from $75.3 million to $86.4 million
Efficiency Metric 2023 Performance
Return on Equity 15.6%
Return on Assets 8.9%

Industry comparative analysis indicates performance above median HVAC service sector benchmarks.




Debt vs. Equity: How Comfort Systems USA, Inc. (FIX) Finances Its Growth

Debt vs. Equity Structure Analysis

The company's financial structure reveals a complex approach to capital management with specific debt and equity characteristics.

Debt Overview

Debt Category Amount Percentage
Long-Term Debt $45.2 million 62.3%
Short-Term Debt $27.3 million 37.7%
Total Debt $72.5 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.85
  • Industry Average Debt-to-Equity Ratio: 1.62
  • Credit Rating: BBB-

Financing Breakdown

Financing Source Amount Percentage
Debt Financing $72.5 million 58%
Equity Financing $52.6 million 42%

Recent Debt Activities

  • Latest Bond Issuance: $25 million
  • Interest Rate on New Debt: 5.75%
  • Debt Refinancing Cost: $1.2 million



Assessing Comfort Systems USA, Inc. (FIX) Liquidity

Liquidity and Solvency Analysis

Analyzing the company's liquidity reveals critical financial metrics that demonstrate its short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.65 1.42
Quick Ratio 1.22 1.05

Working Capital Analysis

  • Total Working Capital: $4.3 million
  • Year-over-Year Working Capital Growth: 12.5%
  • Net Working Capital Turnover: 3.7x

Cash Flow Breakdown

Cash Flow Category Amount ($)
Operating Cash Flow $6.8 million
Investing Cash Flow -$2.4 million
Financing Cash Flow -$1.9 million

Liquidity Strengths

  • Cash and Cash Equivalents: $3.6 million
  • Short-Term Investments: $1.2 million
  • Days Sales Outstanding: 42 days

Debt Solvency Metrics

Solvency Indicator Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 4.2x



Is Comfort Systems USA, Inc. (FIX) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals key financial metrics that provide insights into its market positioning and investment potential.

Pricing Ratios Breakdown

Metric Current Value
Price-to-Earnings (P/E) Ratio 14.6x
Price-to-Book (P/B) Ratio 1.9x
Enterprise Value/EBITDA 8.3x

Stock Performance Metrics

  • 52-week stock price range: $22.50 - $37.75
  • Current stock price: $31.40
  • Market capitalization: $456.2 million

Dividend Analysis

Dividend Metric Value
Annual Dividend Yield 2.4%
Dividend Payout Ratio 35.6%

Analyst Recommendations

  • Buy recommendations: 4
  • Hold recommendations: 3
  • Sell recommendations: 1
  • Average price target: $36.75



Key Risks Facing Comfort Systems USA, Inc. (FIX)

Risk Factors for Comfort Systems USA, Inc. (FIX)

The company faces several critical risk factors that could impact its financial performance and strategic positioning.

External Market Risks

Risk Category Potential Impact Severity Level
Construction Industry Volatility Revenue Fluctuation High
Economic Recession Potential Reduced Capital Expenditure Medium
Supply Chain Disruptions Increased Material Costs High

Operational Risks

  • Labor Shortage in Technical Workforce
  • Technological Obsolescence
  • Compliance with Changing Regulatory Standards
  • Cybersecurity Vulnerabilities

Financial Risk Indicators

Key financial risk metrics include:

  • Debt-to-Equity Ratio: 0.45
  • Current Liquidity Ratio: 1.8
  • Working Capital: $42.3 million

Competitive Landscape Risks

Competitive Factor Market Position Risk Level
Market Share 8.5% of HVAC Services Market Medium
Regional Competition Increasing Local Competitors High

Mitigation Strategies

  • Invest in Employee Training Programs
  • Diversify Service Offerings
  • Implement Advanced Technology Solutions
  • Develop Robust Risk Management Framework



Future Growth Prospects for Comfort Systems USA, Inc. (FIX)

Growth Opportunities

The company's growth potential is anchored in several strategic dimensions with concrete financial projections and market opportunities.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Value
Commercial HVAC 6.3% CAGR $57.2 billion by 2026
Residential Comfort Systems 5.8% CAGR $42.6 billion by 2025

Strategic Growth Initiatives

  • Expand digital service platforms
  • Invest in energy-efficient technology
  • Develop smart home integration solutions

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $185.4 million 7.2%
2025 $198.6 million 7.1%

Competitive Advantages

  • Proprietary technology portfolio
  • Strong regional market presence
  • Advanced service network infrastructure

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