Comfort Story

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FIX -- USA Stock  

USD 50.39  0.07  0.14%

It looks like Dycom Industries will be up for a correction faster as its share price went up 0.75% today to Comfort Systems's 2.24%As many rational traders are trying to avoid industrials space, it makes sense to break down Comfort Systems USA a little further and understand how it stands against Dycom Industries and other similar entities. We are going to inspect some of the competitive aspects of both Comfort and Dycom.
Published over two months ago
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Is Dycom more volatile than Comfort Systems USA (NYSE:FIX)?
By analyzing existing basic indicators between Comfort Systems and Dycom, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dycom with a short position in Comfort Systems. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Comfort Systems has an asset utilization ratio of 401.97 percent. This suggests that the company is making $4.02 for each dollar of assets. An increasing asset utilization means that Comfort Systems USA is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Comfort or Dycom is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Comfort Systems dividends

A dividend is the distribution of a portion of Comfort Systems earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Comfort Systems dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Comfort one year expected dividend income is about $0.27 per share.
Dividend Yield is likely to rise to 0.008716 in 2020, whereas Payment of Dividends and Other Cash Distributions is likely to drop (15.7 M) in 2020.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-14.5 M-15.7 M
Dividend Yield 0.0072  0.008716 
Dividends per Basic Common Share 0.40  0.36 
Investing in dividend-paying stocks, such as Comfort Systems USA is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Comfort Systems must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Comfort Systems. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Comfort Systems's Liquidity

Comfort Systems financial leverage refers to using borrowed capital as a funding source to finance Comfort Systems USA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Comfort Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Comfort Systems's total debt and its cash.

Correlation Between Comfort and Dycom Industries

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Comfort Systems together with similar or unrelated positions with a negative correlation. For example, you can also add Dycom Industries to your portfolio. If Dycom Industries is not perfectly correlated to Comfort Systems it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Comfort Systems for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between FIX and DY for more information.

Purchase by Franklin Myers of 3500 shares of Comfort Systems

Legal trades by Comfort Systems insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Comfort insider trading alert for perchase of common stock by Franklin Myers, the corporate stakeholder, on 10th of September 2020. This event was filed by Comfort Systems Usa Inc with SEC on 2020-09-10. Statement of changes in beneficial ownership - SEC Form 4. Franklin Myers currently serves as independent chairman of the board of Comfort Systems USA [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Comfort

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over Comfort Systems revenue. Based on the latest financial disclosure , Comfort Systems USA reported 2.78 B of revenue. This is 20.54% lower than that of the Industrials sector and 50.51% lower than that of Engineering & Construction industry. The revenue for all United States stocks is 70.53% higher than that of the firm. As for Dycom Industries we see revenue of 3.32 B, which is 40.89% lower than that of the Engineering & Construction

Comfort2.78 Billion
Sector3.5 Billion
Dycom3.32 Billion
2.8 B
Comfort
3.5 B
Sector
3.3 B
Dycom

Is Comfort showing appearance of lower volatility?

Current mean deviation is at 3.1. Comfort Systems USA shows above-average downside volatility for the selected time horizon. We advise investors to inspect Comfort Systems USA further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Comfort Systems future alpha.

The Bottom Line

While some firms within the engineering & construction industry are still a little expensive, even after the recent corrections, Comfort Systems may offer a potential longer-term growth to investors. To conclude, as of the 26th of July 2020, our overall 30 days buy-sell recommendation on the company is Hold. We believe Comfort Systems is currently overvalued with low chance of distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Comfort Systems USA. Please refer to our Terms of Use for any information regarding our disclosure principles.

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