Comfort Systems USA, Inc. (FIX)

FairStock Score: 68/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and have a durable competitive advantage, bought at a sensible price. Comfort Systems is clearly a high-quality operator today. In fiscal Q2 2026, the quarter ended 2026-06-30, it filed revenue of $3.3B, net income of $441.6M, and diluted EPS of $12.53. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $2.2B, net income $230.8M, and diluted EPS $6.53. For the full fiscal year 2025, the company filed revenue of $9.1B, net income of $1.0B, and diluted EPS of $28.88, up from $7.0B, $522.4M, and $14.60 in fiscal 2024. That is exceptional growth. The balance sheet is a strength: FairStock calculates D/E of 0.11, ROE of 55.29%, ROCE of 17.04%, and an Altman Z-Score of 7.81. Free cash flow is $2.2B on a trailing basis, though the FCF yield is only 3.8% at the 2026-10-13 close. The moat is not obvious to me; mechanical and electrical contracting is competitive, even if maintenance and repair work adds repeat business. Valuation is the rub. At that close, FairStock calculates P/E of 40.05, P/B of 17.77, EV/EBITDA of 27.86, and a Graham Number of $289.02 versus the $1,626.64 price—negative 462.81% margin of safety. The PEG of 0.44 is attractive if growth persists, and the Lynch category is FAST GROWER, with profit growth of 46.8% a year over five years. But Graham would demand a much larger discount, and Piotroski is only 4/9. I see a fine business priced for a lot to go right.

In plain English: Comfort Systems USA installs and services heating, cooling, electrical and plumbing systems for buildings. The business looks strong right now: sales and profits are growing quickly and debt is low. But the share price looks expensive compared with the company's profits and what it owns minus what it owes, even after allowing for that fast growth.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer