Comfort Systems USA, Inc. — Earnings Quality Grade F
FIX · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 103 days, change +7 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 29.5%, CFFO 39.7%. Cash follows revenue
Expense Quality
Inventory growth 41.9% far exceeds COGS 24.4%, margin rising. Fraud signal
CapEx growth 39.5% vs revenue 29.5%. Normal
SG&A/Gross Profit = 40.2%. Normal
Gross margin 24.1%, change +3.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.16. Profits backed by cash
FCF $1.0B, FCF/NI = 1.01
Accruals ratio = -2.5%. Low accruals
Cash $1.0B covers debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $1.5B = 62% of equity. Over 50%
Debt/EBITDA = 0.3x. Healthy
Other assets 28.2% vs revenue 29.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 15% YoY. Normal
Manipulation Score
M-Score = -2.35 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09