Comfort Systems USA has announced an enhancement to its stock repurchase initiative. The Board of Directors has approved an increase in authorized shares for repurchase, raising the available total to 1,000,000 shares. This adjustment allows Comfort Systems USA (FIX, Financial) to buy back an additional 402,413 shares of its outstanding common stock. Previously, the program permitted the repurchase of up to 11,355,551 shares. This strategic move aims to strengthen the company's stock position and potentially increase shareholder value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Comfort Systems USA Inc (FIX, Financial) is $500.67 with a high estimate of $563.00 and a low estimate of $465.00. The average target implies an upside of 8.31% from the current price of $462.24. More detailed estimate data can be found on the Comfort Systems USA Inc (FIX) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Comfort Systems USA Inc's (FIX, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Comfort Systems USA Inc (FIX, Financial) in one year is $321.23, suggesting a downside of 30.51% from the current price of $462.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Comfort Systems USA Inc (FIX) Summary page.
FIX Key Business Developments
Release Date: April 25, 2025
- Revenue: $1.8 billion, an increase of 19% compared to last year.
- Same-Store Revenue Growth: 15% increase.
- Earnings Per Share (EPS): $4.75, up more than 75% from last year.
- Backlog: Nearly $7 billion, a new high.
- Gross Profit: $403 million, a $106 million improvement from last year.
- Gross Profit Margin: 22.0%, up from 19.3% last year.
- Operating Income: $209 million, a 54% increase from last year.
- Operating Income Margin: Increased from 8.8% to 11.4%.
- Net Income: $169 million.
- EBITDA: $243 million, a 43% increase from last year.
- Free Cash Flow: Negative $109 million due to discrete impacts.
- Dividend Increase: $0.05 to $0.45 per share.
- Share Repurchases: $92 million, over 264,000 shares bought.
- Technology Sector Revenue: 37% of total revenue, up from 30% last year.
- Service Revenue: Up 10% on an absolute basis.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Comfort Systems USA Inc (FIX, Financial) reported record earnings per share of $4.75, a 75% increase from the previous year, despite the first quarter being seasonally weak.
- The company's backlog reached a new high of nearly $7 billion, indicating strong future demand.
- Same-store revenue growth was 15% for the first quarter, with total revenue increasing by 19% to $1.8 billion.
- Gross profit improved significantly, with margins increasing to 22.0% from 19.3% in the previous year.
- Comfort Systems USA Inc (FIX) increased its quarterly dividend by $0.05 to $0.45 per share and continued share repurchases, reflecting a commitment to shareholder returns.
Negative Points
- Free cash flow was negative $109 million in the first quarter due to advanced customer payments, deferred tax payments, and acquisition earn-out payments.
- The company faces macroeconomic uncertainties, including potential impacts from tariffs and policy changes that could affect construction costs and demand.
- SG&A expenses increased to $195 million from $163 million, maintaining a consistent percentage of revenue but limiting leverage opportunities.
- The company anticipates high comparables for the remainder of 2025, which may challenge continued revenue growth.
- There is ongoing uncertainty regarding the impact of tariffs and supply chain challenges on future pricing and margins.
