Comfort Systems provides installation, maintenance, repair, and replacement services for heating, ventilation, and air conditioning (HVAC) systems in the mechanical services industry. The company was founded in 1917 and is based in Houston, Texas.
FIX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FIX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Comfort Systems Usa Inc ranked in the 82th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 655.17%. In terms of the factors that were most noteworthy in this DCF analysis for FIX, they are:
FIX's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 26.67% of tickers in our DCF set.
Comfort Systems Usa Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 20.56. This coverage rate is greater than that of 86.97% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than just 24.19% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
KNOP, ACY, ACTG, TRTN, and BCO can be thought of as valuation peers to FIX, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Comfort Systems USA, Inc. (FIX) Q2 2020 Earnings Conference Call July 28, 2020 11:00 AM ET Company Participants Julie Shaeff – Senior Vice President and Chief Accounting Officer Brian Lane – President and Chief Executive Officer Bill George – Chief Financial Officer Conference Call Participants Joe Mondillo – Sidoti &...
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