Comfort from the Heat
Construction Industry - Comfort Systems USA | 6.17.24
Comfort Systems USA is Cool
This week we’re digging into the U.S. construction sector. Why? The most recent economic data from April 2024 points to continued strength in construction spending - whether its the 11.4% annual growth in single family housing starts, the 8.1% annual growth in residential construction spending or the 11.5% annual growth in non-residential construction spending.
Comfort Systems (NYSE:FIX) based in Houston, TX is focused on the new build commercial & industrial heating ventilation and air conditioning (HVAC) services market. FIX has been growing rapidly - in 1Q2024 revenues increased 31% year over year (YoY) and operating income increased 91% YoY.
At Eaglestone Capital, we love companies that earn high returns on capital employed (ROCE) while growing earning per share (EPS) and compounding book value. Over the past year, FIX grew EPS 78% and book value per share 30% while growing ROCE from 19.6% to 29.1% over the past year.
