FIX

COMFORT SYSTEMS USA INC

Materials • CIK: 0001035983

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Market Cap
$32.99B
P/E (TTM)
32.2x
Rev Growth (TTM)
+29.5%
Net Margin (TTM)
11.2%
FCF Yield (TTM)
3.1%
FCF Margin (TTM)
11.3%

Filing Intelligence

6.0/10
10-K filed Feb 19, 2026FY 2025

Executive Summary

Operating lease liabilities total $338.1 million, with significant payments due in the next five years.. Mechanical Segment revenue increased by 20.75% See detailed pass outputs for comprehensive...

Key Concerns

  • Management anticipates continued high demand in 2026, especially from industrial and technology customers, but acknowledges persistent cost...
  • Increase in allowance for credit losses requires monitoring for potential credit deterioration.
  • Operating lease liabilities total $338.1 million, with significant payments due in the next five years.

Key Strengths

  • The company experienced robust revenue growth in 2025, driven by strong market conditions, particularly in the technology sector, and...
  • Gross profit and operating income margins improved significantly due to higher revenues, improved operational execution, and leverage from...
  • Strong operating cash flow generation continued, with a substantial increase driven by higher earnings and favorable working capital...

LATEST EARNINGS

Q4 2025
about 1 month ago
View source
Revenue
$2.65B
+41.6%
Net Income
$330.81M
+126.8%
EPS
$9.37
+129.1%
Gross
25.5% +2.3%
Operating
16.1% +4.0%
Net
12.5% +4.7%
  • Fourth quarter revenue increased to $2.65 billion from $1.87 billion in the prior year, a significant jump.
  • Full year 2025 revenue reached $9.10 billion, up from $7.03 billion in 2024.
  • Diluted EPS for the fourth quarter doubled year-over-year to $9.37 from $4.09.
  • Full year 2025 net income was $1.02 billion, more than double the $522.4 million reported in 2024.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$1.0B
Q4 '25
$402M-22%
Q3 '25
$518M+134%
FCF Margin
TTM11.3%
Q4 '2515.2%-28%
Sector: 0.4%Top 25%
OCF Margin13.0%
OCF/NI1.16x
CapEx Coverage7.7x
FCF Yield3.1%
FCF Growth (2Y)+60%
Cash Conversion Cycle
56 days
DSO: 84+DIO: 4DPO: 33

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM0.9%
Div Yield0.2%
+
Buyback (TTM)0.7%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.2%
FCF Payout Ratio6.7%
Free Cash Flow (TTM)$1.0B
Stock Repurchases (TTM)$216.0M
Capital Return / FCF27.6%
Est. Dividends Paid (TTM)$68.8M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
44.0%
Moderate
+0.1% YoY+21.7%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
11.4%
8Q: 9.4%
Asset Turnover
1.73x
8Q: 1.72x
Leverage (1+D/E)
1.06x
D/E: 0.06x
DuPont: 21.0%44.0% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
28.52x
8Q:28.93x
-26.6%
Invested Cap Turn
3.86x
8Q:3.84x
Flat
CapEx Intensity
6.6%
8Q:5.8%
CapEx/Depreciation
2.48x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$9.1B
$2.6B8.0%
$2.5B12.8%
$2.2B18.7%
$1.8B2.0%
$1.9B3.1%
$1.8B0.1%
$1.8B17.8%
$1.5B
Operating Income
$1.3B
$426.7M12.6%
$378.9M26.3%
$299.9M43.4%
$209.1M7.6%
$226.4M11.6%
$202.9M9.9%
$184.7M36.3%
$135.5M
Net Income
$1.0B
$330.8M13.4%
$291.6M26.3%
$230.8M36.4%
$169.3M16.1%
$145.9M0.2%
$146.2M9.1%
$134.0M39.1%
$96.3M
Operating Cash Flow
$1.2B
$468.5M15.3%
$553.3M119.1%
$252.5M387.1%
$-88.0M141.8%
$210.5M30.4%
$302.2M59.2%
$189.9M29.5%
$146.6M
Free Cash Flow
$1.0B
$402.4M22.3%
$517.9M134.1%
$221.2M300.8%
$-110.2M164.9%
$169.8M39.4%
$280.1M68.3%
$166.5M36.9%
$121.6M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
32.2x
Volatile
8Q: 97.4x-906%
Valuation Lenses
Earnings
32.2x
vs sector
Cash Flow
31.6x
EV/FCF vs
Growth-Adj
0.3xPEG
Undervalued for growth
Quality-Adj
0.7P/E per %ROIC
ROIC: 44.0%
Shareholder Returns
Dividend
0.2%
Buyback
0.7%
Total Yield
0.9%
Market Cap$32.99B
EV$32.55B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
88/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
50.8%
8Q:
Return on Invested Capital (ROIC)Top 25%
44.0%
8Q:
+21.7%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 11.4%
Asset Turnover: 1.73x

Earnings Quality

Cash Conversion

1.16x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin24.1%

Capital Efficiency

Invested Capital Turnover3.86x

Working Capital

Cash Conversion Cycle56 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
29.5%
OpInc Growth YoY
88.5%
EPS Growth YoY
97.9%
FCF 3Y CAGR
59.7%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 8.5/10 - Highly sustainable growth

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
24.1%
Operating
14.4%
Above Avg in sector
Net
11.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+0.1 pts
FCF: 11.3% | Net: 11.2%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $836.67M
Interest Coverage
+Net cash position: $836.67M
Balance sheet risk & solvency analysis