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olivLaw · US equity research

Comfort Systems USA, Inc. FIX

Electrical Work · SIC 1731 · Vertical: Electrical Work (SIC 1731)

1,091.31USD−15.08% · 1 dayClose 04 Nov 2026

Comfort Systems USA is a US mechanical and electrical contractor for large buildings, larger than most of its competitors. It matters now because backlog rose to 17.81 bn USD, nearly double a year earlier, and the technology sector, which includes data centers, accounted for 45.0% of 2025 revenue.

At the close of 04 Nov 2026, Comfort Systems USA, Inc. (FIX) stock was 1,091.31 USD (−15.08% on the day), with market capitalisation 38.2 bn USD, P/E 23.6 on diluted EPS of 46.32 USD over the last 12 months, dividend yield 0.27%, beta 1.99, 52-week range 876.19–2,066.51 USD. Latest reported quarter (Q3 2026): revenue of 3.8 bn USD (+53.7% YoY), net income of 489.0 m USD (+67.7% YoY), diluted EPS 13.91 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
38.2 bn USD
shares as of 16 Oct 2026
P/E (TTM)
23.6
Diluted EPS TTM 46.32 · TTM to 30 Sept 2026
E/P (TTM)
4.24%
TTM to 30 Sept 2026
Dividend yield
0.27%
DPS 12m 3.00
Beta (2y)
1.99
Volatility (1y) 60%
52-week range
876.192,066.51

Price history

Loading chart…

Technical reading

RSI (14)
31.0
weak (30–45)
Bollinger (20, 2)
1,039.38 – 1,747.17
in the lower half of the band · %B 0.07 · band width 50.8%
SMA 50 / 200
1,536.64 / 1,606.73
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-113.71 / -95.79
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−36.3%−1.1%−35.2 pp—
3 months−37.2%−0.5%−36.7 pp—
6 months−45.7%+4.4%−50.1 pp—
Year to date+16.9%+12.3%+4.6 pp—
1 year+14.2%+13.5%+0.6 pp+14.4%
3 years+481.1%+76.4%+404.7 pp+208.2%
5 years+1,002.1%+63.7%+938.4 pp—
Max drawdown (1y)
−47.2%
22 Jun 2026 → 04 Nov 2026
Max drawdown (5y)
−47.2%
22 Jun 2026 → 04 Nov 2026
Compound annual growth (5y)
+61.6%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
3.8 bn USD
+53.7% YoY
Net income
489.0 m USD
+67.7% YoY
Diluted EPS
13.91
+68.6% YoY
net / operating
13.0% / 16.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue1.9 bn1.8 bn2.2 bn2.5 bn2.6 bn2.9 bn3.3 bn3.8 bn
Cost of revenue1.4 bn1.4 bn1.7 bn1.8 bn2.0 bn2.1 bn2.4 bn2.8 bn
Gross profit433.7 m403.4 m509.9 m607.9 m674.7 m754.4 m844.2 m934.5 m
SG&A207.6 m194.9 m210.5 m229.6 m248.4 m269.0 m287.0 m314.2 m
Operating income226.4 m209.1 m299.9 m378.9 m426.7 m485.7 m558.0 m624.6 m
Interest expense1.6 m1.6 m1.6 m3.0 m2.8 m2.2 m1.4 m1.5 m
Pre-tax income186.0 m208.0 m296.5 m370.5 m418.5 m482.1 m566.2 m635.1 m
Income tax40.2 m38.7 m65.6 m78.8 m87.7 m111.8 m124.6 m146.0 m
Net income145.9 m169.3 m230.8 m291.6 m330.8 m370.4 m441.6 m489.0 m
Diluted EPS4.09 ≈4.756.538.259.37 ≈10.5112.5313.91
Operating cash flow210.5 m-88.0 m252.5 m ≈553.3 m ≈468.5 m388.8 m1.1 bn ≈1.0 bn ≈
Capex40.7 m22.2 m31.3 m ≈35.3 m ≈66.1 m147.5 m141.4 m ≈210.6 m ≈
Dividends paid12.4 m14.2 m15.9 m ≈17.6 m ≈21.2 m24.6 m28.2 m ≈31.6 m ≈
Share repurchases15.9 m91.4 m19.9 m ≈13.1 m ≈91.6 m2.5 m5.7 m ≈337.9 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 66 percentile of its own 44-quarter history (min 11.8, median 21.6, max 48.7; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue2.2 bn2.6 bn2.9 bn3.1 bn4.1 bn5.2 bn7.0 bn9.1 bn
Revenue YoY+22.1%+19.8%+9.2%+7.6%+34.7%+25.8%+35.0%+29.5%
Net income112.9 m114.3 m150.1 m143.3 m245.9 m323.4 m522.4 m1.0 bn
Net income YoY+104.3%+1.3%+31.3%−4.5%+71.6%+31.5%+61.5%+95.7%
Diluted EPS3.003.084.093.936.829.0114.6028.88
Diluted EPS YoY+104.1%+2.7%+32.8%−3.9%+73.5%+32.1%+62.0%+97.8%
net %5.2%4.4%5.3%4.7%5.9%6.2%7.4%11.2%
Free cash flow119.9 m110.3 m262.4 m157.8 m253.2 m544.7 m738.0 m1.0 bn

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
981.9 m USD
Financial debt
145.2 m USD
Net debt
-836.7 m USD
Equity
2.4 bn USD
Total assets
6.4 bn USD
Debt / equity
0.06x
Current ratio
1.21x
ROE
49.2%
ROA
18.3%
FCF margin
11.3%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
5.2 bn
2024
7.0 bn
2025
9.1 bn

SEC (XBRL)· 19 Feb 2026verified

Cost of revenue
2023
4.2 bn
2024
5.6 bn
2025
6.9 bn

SEC (XBRL)· 19 Feb 2026verified

Gross profit
2023
990.5 m
2024
1.5 bn
2025
2.2 bn

SEC (XBRL)· 19 Feb 2026verified

SG&A
2023
574.4 m
2024
730.1 m
2025
883.3 m

SEC (XBRL)· 19 Feb 2026verified

Operating income
2023
418.4 m
2024
749.4 m
2025
1.3 bn

SEC (XBRL)· 19 Feb 2026verified

Depreciation & amortisation
2023
38.2 m
2024
48.2 m
2025
62.4 m

SEC (XBRL)· 19 Feb 2026verified

EBITDA
2023
456.6 m ≈
2024
797.6 m ≈
2025
1.4 bn ≈

SEC (XBRL)· 19 Feb 2026derived

Interest expense
2023
10.3 m
2024
6.6 m
2025
9.0 m

SEC (XBRL)· 19 Feb 2026verified

Pre-tax income
2023
388.2 m
2024
666.6 m
2025
1.3 bn

SEC (XBRL)· 19 Feb 2026verified

Income tax
2023
64.8 m
2024
144.1 m
2025
270.9 m

SEC (XBRL)· 19 Feb 2026verified

Net income
2023
323.4 m
2024
522.4 m
2025
1.0 bn

SEC (XBRL)· 19 Feb 2026verified

Diluted EPS
2023
9.01
2024
14.60
2025
28.88

SEC (XBRL)· 19 Feb 2026verified

Weighted average diluted shares
2023
35.9 m
2024
35.8 m
2025
35.4 m

SEC (XBRL)· 19 Feb 2026verified

Dividend per share
2023
0.85
2024
1.20
2025
1.95

SEC (XBRL)· 19 Feb 2026verified

Balance sheet · USD

Cash
2023
205.2 m
2024
549.9 m
2025
981.9 m

SEC (XBRL)· 19 Feb 2026verified

Inventories
2023
65.5 m
2024
59.2 m
2025
84.1 m

SEC (XBRL)· 19 Feb 2026verified

Current assets
2023
1.9 bn
2024
2.8 bn
2025
4.1 bn

SEC (XBRL)· 19 Feb 2026verified

Property, plant & equipment, net
2023
208.6 m
2024
277.2 m
2025
388.0 m

SEC (XBRL)· 19 Feb 2026verified

Goodwill
2023
666.8 m
2024
875.3 m
2025
1.0 bn

SEC (XBRL)· 19 Feb 2026verified

Intangibles (excl. goodwill)
2023
280.4 m
2024
434.4 m
2025
485.2 m

SEC (XBRL)· 19 Feb 2026verified

Total assets
2023
3.3 bn
2024
4.7 bn
2025
6.4 bn

SEC (XBRL)· 19 Feb 2026verified

Accounts payable
2023
420.0 m
2024
654.9 m
2025
696.3 m

SEC (XBRL)· 19 Feb 2026verified

Short-term debt
2023
4.9 m
2024
6.0 m
2025
6.2 m

SEC (XBRL)· 19 Feb 2026verified

Long-term debt
2023
39.3 m
2024
62.3 m
2025
139.1 m

SEC (XBRL)· 19 Feb 2026verified

Current liabilities
2023
1.7 bn
2024
2.6 bn
2025
3.4 bn

SEC (XBRL)· 19 Feb 2026verified

Total liabilities
2023
2.0 bn
2024
3.0 bn
2025
4.0 bn

SEC (XBRL)· 19 Feb 2026verified

Equity
2023
1.3 bn †
2024
1.7 bn †
2025
2.4 bn †

SEC (XBRL)· 19 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
639.6 m
2024
849.1 m
2025
1.2 bn

SEC (XBRL)· 19 Feb 2026verified

Capex
2023
94.8 m
2024
111.1 m
2025
154.9 m

SEC (XBRL)· 19 Feb 2026verified

Free cash flow
2023
544.7 m ≈
2024
738.0 m ≈
2025
1.0 bn ≈

SEC (XBRL)· 19 Feb 2026derived

Investing cash flow
2023
-193.0 m
2024
-343.5 m
2025
-467.3 m

SEC (XBRL)· 19 Feb 2026verified

Financing cash flow
2023
-298.6 m
2024
-160.8 m
2025
-287.1 m

SEC (XBRL)· 19 Feb 2026verified

Dividends paid
2023
30.4 m
2024
42.8 m
2025
68.8 m

SEC (XBRL)· 19 Feb 2026verified

Share repurchases
2023
21.2 m
2024
57.9 m
2025
216.0 m

SEC (XBRL)· 19 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
29.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
30.0%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
26.1%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
75.4%
computed by olivLawFY 2025
Net income growth (YoY)
95.7%
computed by olivLawFY 2025
Net income CAGR 3Y
60.8%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
46.8%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
97.8%
computed by olivLawFY 2025
EPS CAGR 3Y
61.8%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
47.8%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
39.8%
computed by olivLawFY 2025

Profitability

Gross margin
25.6%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
17.2%
computed by olivLawTTM to 30 Sept 2026
EBIT margin
16.7%
computed by olivLawTTM to 30 Sept 2026
Net margin
13.0%
computed by olivLawTTM to 30 Sept 2026
FCF margin
19.5%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
58.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
20.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
118.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
53.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
6.5%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
4.3%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
-2.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
-1.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
264.9x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
1.1x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
1.1x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.4x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
3.0 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
565.5 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
2.4 bn USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
149.6%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
139.4%
computed by olivLawTTM to 30 Sept 2026

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
4 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
31 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
38.2 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
36.1 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
23.4x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
23.6x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
4.2%
computed by olivLawTTM to 30 Sept 2026
P/B
11.4x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
3.0x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
16.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBIT
17.2x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
2.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
15.6x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
6.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.3%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
1.4%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
6.17
computed by olivLawbalance sheet at 30 Sept 2026

Valuation

olivLaw classification

Neutral profile

Score: 73 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

1,091.31 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 38.2 bn USD

Key indicators

Market capitalisation
38.2 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
23.6x
computed by olivLawTTM to 30 Sept 2026
P/B
11.4x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
16.7x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROE
58.6%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
13.0%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
29.5%
computed by olivLawFY 2025
Dividend yield
0.3%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

34/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 16 Oct 2026
Source: SEC (XBRL)published 22 Oct 2026
verified 2877derived 201

Score by group

  • Balance sheet86
  • Growth100
  • Quality100
  • Returns52
  • Valuation33

Estimated value range

Low
908.27
USD per share
Mid
1,152.44
USD per share
High
1,732.12
USD per share
Price: 1,091.31 USD
The price is within the range
Potential to the central value: 5.6% (value / price − 1)
Margin of safety: 5.3% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 603.11 – 1,818.95 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)1,213.42 – 1,818.95 (Mid 1,449.80)
    WACC 9.3% · starting FCFF 2.4 bn USD · terminal value share of EV 74%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 1.5%
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/E603.11 – 1,645.28 (Mid 855.08)
    3 companies used · median multiple 18.5x · quartiles 13.0x – 35.5x
    EME, IESC, PWR
  • Dividend discount (DDM)outside the aggregate25.63 – 34.46 (Mid 29.39)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Electrical Work (SIC 1731)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 73/100

FactorValueScoreWeight used
ROIC · Quality118.9%100 (on a fixed band)10%
Net margin · Quality13.0%100 (vs peers)6%
FCF conversion · Quality149.6%100 (on a fixed band)6%
Revenue CAGR 3Y · Growth30.0%100 (on a fixed band)8%
EPS CAGR 3Y · Growth61.8%100 (on a fixed band)8%
Net debt / EBITDA · Balance sheet-1.0x100 (on a fixed band)10%
Interest coverage · Balance sheet264.9x100 (on a fixed band)6%
Current ratio · Balance sheet1.1x29 (on a fixed band)4%
P/E (TTM) · Valuation23.6x29 (on a fixed band)10%
EV/EBITDA · Valuation16.7x0 (on a fixed band)10%
FCF yield · Valuation6.4%80 (on a fixed band)8%
Shareholder yield (distributions) · Returns1.4%20 (on a fixed band)6%
Payout ratio (FCF) · Returns4.3%100 (on a fixed band)4%

Score groups

  • Balance sheet86/100 · 3/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality100/100 · 3/3 factors with a value
  • Returns52/100 · 2/2 factors with a value
  • Valuation33/100 · 3/3 factors with a value

Memo

COMFORT SYSTEMS USA, INC. (FIX). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 9.1 bn USD in 2025; YoY growth 29.5%; net margin 13.0%; ROE 58.6%; net debt/EBITDA -1.0x.

The estimated value range is 908.27–1,732.12 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 1,152.44 USD, the price of 1,091.31 USD leaves a potential of 5.6% (value / price − 1) and a margin of safety of 5.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 73/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • ROIC: 118.9%
  • Net margin: 13.0%
  • FCF conversion: 149.6%
  • Revenue CAGR 3Y: 30.0%
  • EPS CAGR 3Y: 61.8%
  • Net debt / EBITDA: -1.0x
  • Interest coverage: 264.9x
  • FCF yield: 6.4%
  • Payout ratio (FCF): 4.3%

What contradicts it

  • Current ratio: 1.1x
  • P/E (TTM): 23.6x
  • EV/EBITDA: 16.7x
  • Shareholder yield (distributions): 1.4%
  • The valuation methods diverge

Versus the vertical median

Electrical Work (SIC 1731) · same industry (4-digit SIC) · compared with 5 companies

The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.

Multiples and returns vs the median

P/E
23.6x
vertical median 35.5x
below median (−33.7%)
EV/EBITDA
16.7x
vertical median —
P/S
3.0x
vertical median 2.3x
above median (+29.8%)
P/B
11.4x
vertical median 8.3x
above median (+37.9%)
ROE
58.6%
vertical median 17.8%
above median (+229.8%)
Net margin
13.0%
vertical median 4.5%
above median (+188.4%)
EBIT margin
16.7%
vertical median 6.8%
above median (+144.7%)
Revenue YoY
29.5%
vertical median 16.9%
above median (+74.8%)
Net debt/EBITDA
-1.0x
vertical median —
Dividend yield
0.3%
vertical median —

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
PWRQuanta Services, Inc.87.5 bn52.617.8%4.5%+20.3%+25% / +208%
FIXComfort Systems USA, Inc.38.2 bn23.658.6%13.0%+29.5%+14% / +481%
EMEEMCOR Group, Inc.28.0 bn18.540.6%7.8%+16.6%+4% / +201%
IESCIES Holdings, Inc.3.4 bn7.645.0%11.3%+16.9%−19% / +383%
MAGHMagnitude International Ltd236.6 m6,760.07.2%0.3%unavailableunavailable / unavailable
ENGSEnergys Group Ltd64.6 m—-139.3%-30.1%unavailable+287% / unavailable

1- and 3-year price returns: for FIX from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
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Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
718.15
Total return -34% · Per year -34%
1,263.84
Total return 16% · Per year 16%
1,895.76
Total return 74% · Per year 74%
3 years
851.84
Total return -21% · Per year -8%
1,671.43
Total return 54% · Per year 16%
2,729.89
Total return 152% · Per year 36%
5 years
1,010.42
Total return -6% · Per year -1%
2,210.46
Total return 105% · Per year 15%
3,931.05
Total return 263% · Per year 29%
What moves the 3-year price the most
  • Exit P/E± 417.86
  • Net margin± 292.50
  • Annual revenue growth± 218.15
  • Annual dilution± 24.58

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 26 Oct 2026 · Model: claude-sonnet-5-5.

In brief

Comfort Systems USA is a US mechanical and electrical contractor for large buildings, larger than most of its competitors 2. It matters now because backlog rose to 17.81 bn USD 1, nearly double a year earlier, and the technology sector, which includes data centers, accounted for 45.0% of 2025 revenue 2.

SWOT

Strengths

  • Backlog of 17.81 bn USD 1, nearly double a year earlier.
  • Strong balance sheet: cash of 2.16 bn USD and operating cash flow of 1.01 bn USD in the third quarter 1.
  • Operating margin rising, at 16.6% 1.
  • Decentralized model with local subsidiaries and long-standing customer relationships.

Weaknesses

  • Growth concentrated in a few sectors, especially data centers.
  • Project-based contracts, with cost-overrun risk on complex jobs.
  • Dependence on skilled staff that is hard to recruit.

Opportunities

  • Expansion of the electrical segment, which grew 61.9% in 2025 2.
  • More prefabrication, where short schedules can become a competitive edge.
  • Acquisitions funded by accumulated cash.
  • New factories (semiconductors, batteries, pharmaceuticals) as a second demand engine.

Threats

  • A slowdown in data-center capital spending could compress backlog.
  • High interest rates or tighter financing for developers.
  • Power-grid and equipment constraints that delay projects.
  • A high valuation: any disappointment on backlog or margin could move the stock sharply.

Risks

  • Data-center concentrationhigh

    The technology sector, which includes data centers, accounted for 45.0% of 2025 revenue 2. If big platforms cut or defer investment, projects could slip or be cancelled and revenue growth would slow.

  • Execution and cost overrunsmedium

    Large fixed-price or capped-price projects can lose money if materials or labor cost more than estimated. A gross margin of 24.8% 1 leaves little room for repeated errors.

  • Labor supplyhigh

    Rapid volume growth requires hiring and training electricians and pipefitters in a tight labor market, which could mean higher costs or missed schedules.

  • Acquisition integrationmedium

    New subsidiaries may fall short of expectations or dilute operating culture. Overpaying in high-valuation periods is a recurring risk of the strategy.

  • Macro cycle and interest ratesmedium

    Nonresidential construction reacts with a lag to rates and credit conditions. A recession would hit commercial and industrial projects outside data centers.

Investment thesis

What would need to be true (bull case)

  • Backlog keeps growing or stays near 17.81 bn USD 1, giving visibility into 2027.
  • Operating margin stays near 16.6% 1 as volume grows.
  • Cash of 2.16 bn USD 1 is put to work in well-priced acquisitions or returned to shareholders.
  • Prefabrication and staffing capacity keep pace with projects.

What would break the thesis

  • Big technology platforms cut data-center spending and backlog declines.
  • Labor and material costs erode margins on already-contracted projects.
  • An already high valuation leaves little room for disappointment.
  • One large troubled project visibly hurts a quarter's results.

What to watch

  • Total and same-store backlog in the Q4 reportQ4 2026
  • Gross and operating margin versus 24.8% and 16.6% in Q3Q4 2026
  • Annual report and management comments on 2027Q1 2027
  • Data-center investment announcements from large platformsongoing
  • New acquisitions and integration progress2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 26 Oct 2026 · Model: claude-sonnet-5-5.

The business

The company designs, installs and services heating, ventilation and air-conditioning (HVAC), plumbing, piping, controls, fire protection and electrical systems through autonomous local subsidiaries. It had 50 operating locations at the end of 2025, up from 47 a year earlier 2.

Customers are developers and operators of large projects: data centers, factories (semiconductors, pharmaceuticals, batteries), hospitals, universities and commercial buildings. Contracts are typically project-based, with a steady gross margin of 24.8% in the third quarter 1.

Revenue in 2025 was 9.10 bn USD and net income was 1.02 bn USD 2. In the first nine months of 2026 revenue reached 9.90 bn USD, versus 6.46 bn USD in the same period of 2025 1.

Segments

Mechanical

Covers HVAC, plumbing, piping, controls, off-site (prefabricated) construction and fire protection. It generated 6.67 bn USD in 2025, or 73% of revenue, growing 20.7% 2. It also includes service work, which is steadier than new projects.

Electrical

Installation and servicing of electrical systems, especially for data centers and industry. It generated 2.43 bn USD in 2025, or 27% of revenue, growing 61.9% 2. It is the fastest-growing segment, though from a smaller base.

Market context

Demand comes largely from technology companies' capital spending on data centers and from the reshoring of manufacturing to the US. A large data center needs heavy cooling and electrical capacity, exactly what the company installs, so an important share of project value reaches contractors like it.

The nonresidential construction cycle is sensitive to interest rates and financing access, but the 17.81 bn USD backlog 1 gives visibility over several quarters. The practical limit to growth is skilled labor (electricians, pipefitters), not the number of available projects.

Trends

  • AI data centerstailwind

    Backlog grew from 14.06 bn USD to 17.81 bn USD in a single quarter and from 9.38 bn USD a year earlier 1. Management credits relentless demand and the firm's reputation, without a sector breakdown in the release; in 2025 the technology sector accounted for 45.0% of revenue 2. If big platform spending stays high the pace could continue; if it pauses, projects could slip.

  • Prefabrication and off-site constructiontailwind

    The mechanical segment includes off-site construction, which shortens schedules and reduces reliance on field labor. Firms with prefabrication capacity can win large projects over smaller rivals.

  • Consolidation through acquisitionsmixed

    The company added locations through acquisitions, reaching 50 operating locations at the end of 2025 2. Deals add capacity and geographic reach but carry integration risk and the chance of overpaying.

  • Labor shortages and costsheadwind

    Growing volumes require hiring skilled staff. Operating margin rose to 16.6% in the third quarter from 15.5% 1, but wage pressure and staffing shortages could limit execution speed.

Competitive position

The mechanical and electrical contracting market is fragmented, with thousands of regional firms. Comfort Systems stands out through the financial capacity to take on multi-billion-dollar projects, its balance sheet (cash of 2.16 bn USD 1) and its execution reputation with large customers.

The main listed competitors are infrastructure and electrical contractors with data-center exposure. Competition shows up mainly in hiring labor and in selection by customers who can choose among few contractors capable at scale.

  • EMCOR GroupEME

    Mechanical and electrical contractor with larger revenue, strong in data centers and service.

  • Quanta ServicesPWR

    Much larger, focused on electric grids but also present in data-center infrastructure.

  • IES HoldingsIESC

    Electrical and infrastructure contractor with data-center exposure.

  • MYR GroupMYRG

    Specialized in electric grid construction and commercial work.

  • APi GroupAPG

    Fire safety, HVAC and inspections, with a service-oriented model.

News & filings

In the press

The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 28 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

  • Current report28 Oct 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Quarterly report22 Oct 2026
  • Current report22 Oct 2026
    Results of operations · Other events · Financial statements and exhibits
  • Current report22 Oct 2026
    Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
  • Current report03 Aug 2026
    Regulation FD disclosure · Financial statements and exhibits
  • Quarterly report23 Jul 2026
  • Current report23 Jul 2026
    Results of operations · Other events · Financial statements and exhibits
  • Current report22 Jun 2026
    Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
  • Current report21 May 2026
    Shareholder vote
  • Current report01 May 2026
    Regulation FD disclosure · Financial statements and exhibits

Sources

  1. [1] Comunicat de rezultate Q3 2026 (anexa la Form 8-K) · SEC / Comfort Systems USA · 22 Oct 2026
  2. [2] Form 10-K 2025 · SEC / Comfort Systems USA · 26 Feb 2026
  3. [3] Comunicat de rezultate Q1 2026 (anexa la Form 8-K) · SEC / Comfort Systems USA · 23 Apr 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.