FIX Value Scorecard - Comfort Systems USA

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

52/60

high value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: $6.82 (2022), $9.01 (2023), $14.60 (2024), $28.88 (2025). It rose every year; the framework scores that as 5.

ROE Trend

5/5

ROE (net income / common equity): 24.6% (2022), 25.3% (2023), 30.6% (2024), 41.8% (2025). Median 28.0%, lowest 24.6%; the framework scores a median above 20% as 5.

ROIC

5/5

ROIC of 43.1%: operating income of $1.31B divided by $3.05B of capital (total assets $6.44B minus current liabilities $3.39B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

4/5

Net margin of 12.8%; the framework scores 10-20% as 4; gross margin 25.7%, operating margin 17.1%.

Balance sheet & cash

Debt-to-Equity

5/5

Net cash: total debt $369.91M, total cash $1.91B. The framework scores a net cash position as 5.

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $253.17M (2022), $544.73M (2023), $737.99M (2024), $1.03B (2025). It rose every year; the framework scores that as 5.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $854.64M (2022), $1.15B (2023), $1.63B (2024), $2.58B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

4/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $40.64 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $1,927.24 (EPS CAGR 79.0% capped at 20%). Current price $1,439.07; price is 25.3% below the model value.

DCF Value

4/5

FCF/share = $52.336, stage 1 growth = 20.0% (revenue CAGR 32.2% capped at 20%) for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $342.31, PV of terminal value = $1,189.81, DCF value = $1,532.12. Current price $1,439.07; price is 6.1% below the model value.

Margin of Safety

4/5

Graham value $1,927.24 (price is 25.3% below the model value); DCF value $1,532.12 (price is 6.1% below the model value).

Price-to-Book

1/5

P/B of 15.72; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 9 of 10 years (2016-2025); lowest 13.7%, highest 43.1%.

Gross margin, each year

Between 17.9% and 24.1% over 10 years (a range of 6.2 points).

Competition, in the company’s own words · 10-K filed Feb 19, 2026

The mechanical and electrical contracting industries are highly competitive and consist of thousands of local and regional companies. We believe that purchasing decisions in the commercial, industrial, and institutional markets are based on (i) competitive price, (ii) relationships, (iii) quality, timeliness, and reliability, (iv) tenure, financial strength,

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $495.37M paid out against $2.57B of free cash flow (pass); total debt $389.14M to $483.36M, up 24.2%, 0.3x EBITDA (pass: at most 2x EBITDA); shares outstanding 0.04B to 0.04B, down 1.6% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $40.64, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 79.0%)
    IV = $1,927.24
    Current price $1,439.07 vs Graham value $1,927.24 — price is 25.3% below the model value.

  DCF:
    FCF/share = $52.336
    Stage 1 growth = 20.0% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
    Stage 1 g capped at 20.0% (3-year revenue CAGR was 32.2%)
      Y1: $62.803 → PV $57.093
      Y2: $75.363 → PV $62.284
      Y3: $90.436 → PV $67.946
      Y4: $108.523 → PV $74.123
      Y5: $130.228 → PV $80.861
    Stage 1 PV sum = $342.31
    Terminal value at end of Y5 = $1,916.21
    PV of terminal value = $1,189.81
    DCF value = $1,532.12
    Current price $1,439.07 vs DCF value $1,532.12 — price is 6.1% below the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $1439.07. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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