Competitor Analysis: Evaluating Comfort Systems USA And Competitors In Construction & Engineering Industry
In today's rapidly changing and highly competitive business world, it is vital for investors and industry enthusiasts to carefully assess companies. In this article, we will perform a comprehensive industry comparison, evaluating Comfort Systems USA (NYSE:FIX) against its key competitors in the Construction & Engineering industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Comfort Systems USA Background
Comfort Systems USA Inc provides comprehensive mechanical contracting services, including heating, ventilation, & air conditioning, or HVAC; plumbing; piping & controls; construction; and other electrical components. Projects are mainly for commercial, industrial, & institutional buildings, & tend to be geared toward HVAC. Revenue is roughly split between installation services for newly constructed facilities & maintenance services for existing buildings. The company installs & repairs products and systems throughout the United States. It operates in two segments, Mechanical services & Electrical services, the majority is from the Mechanical services segment.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Comfort Systems USA Inc | 32.64 | 8.59 | 2.13 | 7.27% | $0.16 | $0.3 | 30.85% |
| Quanta Services Inc | 50.36 | 5.97 | 1.80 | 1.87% | $0.35 | $0.62 | 13.62% |
| EMCOR Group Inc | 25.78 | 7.03 | 1.41 | 7.76% | $0.29 | $0.59 | 18.75% |
| AECOM | 105.47 | 5.68 | 0.83 | 0.05% | $0.26 | $0.26 | 13.0% |
| Fluor Corp | 29.56 | 4.41 | 0.52 | 3.03% | $0.12 | $0.1 | -0.48% |
| WillScot Mobile Mini Holdings Corp | 24.96 | 5.80 | 3.35 | 4.36% | $0.22 | $0.32 | 3.84% |
| Valmont Industries Inc | 37.14 | 4.06 | 1.45 | 6.36% | $0.16 | $0.31 | -7.97% |
| MDU Resources Group Inc | 10.73 | 1.79 | 1.20 | 3.43% | $0.21 | $0.25 | -15.12% |
| Dycom Industries Inc | 23.46 | 4.90 | 1.26 | 5.86% | $0.14 | $0.22 | 9.27% |
| Arcosa Inc | 31.78 | 1.90 | 1.92 | 1.66% | $0.1 | $0.11 | 8.99% |
| Sterling Infrastructure Inc | 26.97 | 6.20 | 2.02 | 4.91% | $0.06 | $0.08 | 9.11% |
| Construction Partners Inc | 51.70 | 6.14 | 1.93 | -0.21% | $0.03 | $0.04 | 14.34% |
| IES Holdings Inc | 23.92 | 6.01 | 1.26 | 9.18% | $0.08 | $0.17 | 24.06% |
| Granite Construction Inc | 82.91 | 3.09 | 0.96 | -3.22% | $-0.0 | $0.05 | 20.03% |
| Primoris Services Corp | 19.91 | 2.27 | 0.49 | 1.52% | $0.07 | $0.13 | 12.4% |
| MYR Group Inc | 28.76 | 3.73 | 0.68 | 2.88% | $0.04 | $0.09 | 0.49% |
| Ameresco Inc | 30.82 | 1.94 | 1.27 | -0.33% | $0.03 | $0.05 | 10.1% |
| Argan Inc | 28.32 | 3.63 | 1.72 | 2.7% | $0.01 | $0.02 | 52.09% |
| Limbach Holdings Inc | 30.70 | 5.83 | 1.53 | 6.16% | $0.01 | $0.03 | -1.68% |
| Great Lakes Dredge & Dock Corp | 16.37 | 1.53 | 1 | 5.29% | $0.04 | $0.05 | 25.7% |
| Average | 35.77 | 4.31 | 1.4 | 3.33% | $0.12 | $0.18 | 11.08% |
When analyzing Comfort Systems USA, the following trends become evident:
-
With a Price to Earnings ratio of 32.64, which is 0.91x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
-
It could be trading at a premium in relation to its book value, as indicated by its Price to Book ratio of 8.59 which exceeds the industry average by 1.99x.
-
With a relatively high Price to Sales ratio of 2.13, which is 1.52x the industry average, the stock might be considered overvalued based on sales performance.
-
The Return on Equity (ROE) of 7.27% is 3.94% above the industry average, highlighting efficient use of equity to generate profits.
-
The company exhibits higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $160 Million, which is 1.33x above the industry average, implying stronger profitability and robust cash flow generation.
-
The gross profit of $300 Million is 1.67x above that of its industry, highlighting stronger profitability and higher earnings from its core operations.
-
The company's revenue growth of 30.85% is notably higher compared to the industry average of 11.08%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When evaluating Comfort Systems USA alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
-
In terms of the debt-to-equity ratio, Comfort Systems USA has a lower level of debt compared to its top 4 peers, indicating a stronger financial position.
-
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity with a lower debt-to-equity ratio of 0.22.
Key Takeaways
For Comfort Systems USA, the PE, PB, and PS ratios indicate that the stock is relatively undervalued compared to its peers in the Construction & Engineering industry. On the other hand, the high ROE, EBITDA, gross profit, and revenue growth suggest that the company is performing well financially and has strong growth potential compared to its industry counterparts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.