| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 22 | 41.6x | 17.8x | Bottom tier | |
Growth | 96 | 46.1% | 7.1% | Top tier | |
Quality | 87 | 49.2% | 4.5% | Top tier | |
Safety | 87 | — | 2.6x | Top tier | |
Capital Return | 39 | 0.15% | 2.12% | Bottom tier | |
Momentum | 73 | 134.0% | 2.9% | Top tier | |
Sentiment | 40 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Comfort Systems USA provides specialized mechanical and electrical services, including heating, ventilation, and air conditioning HVAC systems, new building construction, Modular projects, and services for existing facilities. During the first half of fiscal 2026, industrial customers accounted for 75% of revenue, with the technology sector alone representing 58%, versus 40% a year earlier, while institutional markets represented 17% and the commercial sector 8%. Construction work generated 90% of revenue, split between 75% from new buildings and 15% from existing buildings, while services contributed 10%, with service revenue growing 7%.
In Q2 of fiscal 2026, quarterly revenue exceeded $3 billion for the first time, reaching $3.3 billion, an increase of $1.1 billion year over year, with electrical segment revenue growing 81% and mechanical segment revenue growing 40%. Gross profit reached $844.2 million, and gross margin rose to 25.9% from 23.5%, while operating income climbed 86% to $558 million and operating margin expanded to 17.1% from 13.8%. Net income was $441.6 million, or $12.53 per share, compared with $231 million and $6.53 per share a year earlier.
Broader EDGAR results reflect continued expansion; fiscal 2025 revenue reached approximately $9.1 billion and net income reached $1 billion, while the latest twelve-month period in fiscal 2026 recorded revenue of $11.2 billion, gross profit of $2.9 billion, and net income of $1.4 billion. The technology and Modular project mix is driving this growth, with Modular work accounting for approximately 17% of revenue since the beginning of fiscal 2026 and the space allocated to it exceeding 3.5 million square feet. The closing of the Hunt Electric transaction on May 1, 2026 also added an electrical business in Utah that management expects to contribute approximately $250 million in annual revenue.
The analyst consensus is “Buy,” with an average price target of $2080, within a target range extending from $1910 to $2200. The average is slightly above the top of the 52-week range of $2073.99, while the bottom of the range is $670.19, a wide spread that reflects the strength of the revaluation associated with technology and Modular growth and improved margins, but also reveals high sensitivity to any slowdown in these drivers. The data does not include a valid comparable P/E ratio, so the risk assessment here is based on the target range and annual price range rather than an earnings multiple.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Comfort Systems USA revenue reached approximately $3.3 billion, an increase of $1.1 billion, with the electrical segment growing 81% and the mechanical segment growing 40%. Earnings per share rose 92% to $12.53, while net income reached $441.6 million. The momentum came primarily from technology sector demand, which accounted for 58% of revenue in the first half of fiscal 2026, and from the record backlog of $14.1 billion.
The Modular business accounted for approximately 17% of revenue since the beginning of fiscal 2026 and added more than $500 million to net backlog during Q2. The company has more than 3.5 million square feet of space allocated to the business and is targeting more than 4 million square feet by the end of fiscal 2026 and approximately 5 million by late summer 2027. The current expansion is predominantly tied to existing customers and volume commitments from two hyperscale computing operators, while the company is testing small pilot contracts with frontier labs and colocation providers.
Margins improved clearly in Q2 of fiscal 2026, as gross margin rose to 25.9% from 23.5% a year earlier. Operating margin climbed to 17.1% from 13.8%, while EBITDA rose to $600 million from $334 million. Mechanical segment margin also improved to 25.6% and electrical segment margin to 26.4%, but project estimate adjustments had an approximately 7.7% positive impact on quarterly revenue.
Automated analysis for informational purposes only — not investment advice.
Comfort Systems USA closed the Hunt Electric transaction on May 1, 2026, and management described it as a prominent Utah-based electrical company. Management expects Hunt Electric to add approximately $250 million in annual revenue. Hunt Electric has already begun working on joint opportunities with Comfort Systems USA's mechanical contractors in the Utah market, expanding the combination of electrical and mechanical capabilities.
The first risk is concentration, because technology accounted for 58% of revenue in the first half of fiscal 2026, while the current Modular expansion also depends heavily on existing customers. The second is the expected growth slowdown, as management expects same-store revenue growth to finish in the mid-to-high 30% range after 47% in the first six months, due to more difficult comparisons, particularly in Q4. Other risks include adjustments to estimates for large projects, new competitors in Modular, and possible delays to data center projects due to permits, local opposition, and power availability.
The company generated free cash flow of $999 million in Q2 of fiscal 2026 and ended the period with net cash exceeding $1.8 billion. Management is targeting capital spending equal to approximately 5% of fiscal 2026 revenue to fund buildings, robotics, and production equipment related to the expansion, and indicated that it purchased one building for $100 million. However, the CFO explained that part of the quarterly cash flow came from upfront cash and favorable payment terms, so the $999 million figure should not be assumed to recur every quarter.
