(FIX) Comfort Systems USA - Ratings and Ratios

Comfort Systems USA, Inc. (NYSE: FIX) is a Houston-based provider of mechanical and electrical (ME) services across the United States, operating through two primary segments-Mechanical and Electrical. Its core offerings include design, engineering, integration, installation, and start-up of heating, ventilation, air-conditioning (HVAC), plumbing, electrical, piping, controls, fire-protection, and off-site construction for new builds, as well as renovation, expansion, maintenance, monitoring, repair, and replacement of those systems in existing commercial, industrial, and institutional facilities.

The firm also delivers remote-monitoring solutions that track power usage, temperature, pressure, humidity, and airflow for building-systems performance optimization. Its customer base spans building owners and developers, general contractors, architects, consulting engineers, and property managers, positioning FIX as a full-service MEP contractor in a market that is highly dependent on construction activity and energy-efficiency retrofits.

Key quantitative highlights (as of FY 2024): Revenue was approximately $2.1 billion, with a trailing-12-month (TTM) EBITDA margin of ~9.5%, reflecting modest profitability given the labor-intensive nature of the business. The company reported a backlog of roughly $1.3 billion, indicating a pipeline that could sustain growth through 2025 if execution remains on target. Year-over-year revenue growth slowed to ~2% in 2024, largely due to a softening in commercial construction spending and persistent skilled-labor shortages.

Sector drivers and macro considerations: The MEP construction market is closely tied to the U.S. construction spending index, which has been trending upward (+3.2% YoY in Q3 2024) thanks to increased federal infrastructure funding and a rebound in office-space upgrades. Additionally, tightening energy-efficiency regulations and the growing adoption of smart-building technologies are expanding demand for retro-fit services-areas where FIX’s remote-monitoring platform provides a competitive edge. However, the industry remains vulnerable to wage inflation for electricians and HVAC technicians, which could compress margins if not offset by price escalations.

For a deeper quantitative view, the ValueRay platform offers granular, real-time metrics on FIX’s valuation multiples and peer comparison, helping you assess whether the current price reflects these underlying fundamentals.