Stock on Watch: Comfort Systems USA Inc. (FIX)

Company Profile:

Comfort Systems USA, Inc. provides installation, maintenance, repair, and replacement services for heating, ventilation, and air conditioning (HVAC) systems in the mechanical services industry. The company is involved in the design, engineering, integration, installation, and start-up of HVAC, building automation controls, and related systems; and maintenance, repair, replacement, reconfiguration, and monitoring of HVAC systems and industrial process piping. It also provides specialized applications, such as building automation control systems, fire protection, process cooling, electronic monitoring, and process piping. The company offers its services for office buildings, retail centers, apartment complexes, and manufacturing plants, as well as healthcare, education, and government facilities. The company was founded in 1917 and is headquartered in Houston, Texas.

Recent News:

On January 4, 2016, Comfort Systems USA, Inc. (FIX) has completed the acquisition of the remaining 40% noncontrolling interest in Environmental Air Systems (“EAS”) headquartered in Greensboro, North Carolina effective January 1, 2016.

The company announced net income attributable to Comfort Systems USA of $17,673,000 or $0.46 per diluted share, for the quarter ended September 30, 2015, as compared to $7,605,000 or $0.20 per diluted share, for the quarter ended September 30, 2014. The Company reported revenue of $410,565,000 in the current quarter, as compared to $370,145,000 in 2014.

Its board of directors declared a quarterly dividend of $0.065 per share, which is a $0.005 increase from the Company’s most recent dividend, on Comfort Systems USA, Inc. common stock. The dividend is payable on August 25, 2015 to stockholders of record at the close of business on August 14, 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

FIX’s strengths can be seen in its better growh, better solvency and strong efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 43.10. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the sector. We rate Comfort Systems USA Inc. (FIX) a Strong BUY.