Measuring Comfort Systems USA, Inc.'s (NYSE:FIX) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess FIX's recent performance announced on 31 December 2019 and compare these figures to its historical trend and industry movements.

See our latest analysis for Comfort Systems USA

Did FIX perform better than its track record and industry?

FIX's trailing twelve-month earnings (from 31 December 2019) of US$114m has increased by 1.3% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 25%, indicating the rate at which FIX is growing has slowed down. To understand what's happening, let’s take a look at what’s going on with margins and whether the rest of the industry is feeling the heat.

In terms of returns from investment, Comfort Systems USA has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. However, its return on assets (ROA) of 8.2% exceeds the US Construction industry of 6.2%, indicating Comfort Systems USA has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Comfort Systems USA’s debt level, has declined over the past 3 years from 26% to 18%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 12% to 39% over the past 5 years.

What does this mean?

Though Comfort Systems USA's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Comfort Systems USA gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Comfort Systems USA to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for FIX’s future growth? Take a look at our free research report of analyst consensus for FIX’s outlook.

2. Financial Health: Are FIX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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