Matt Kacur Comfort Systems USA FIX-N BUY Aug 06, 2025

Extremely boring. A/C, heating, ventilation, factory systems. Very good earnings, which should grow faster than the market thinks. Popped on earnings, but still room to run based on the reindustrialization of America. PE is 22x. Yield is 0.48%.

Air conditioning products continue to rise in demand with data center (industrial applications) use rising. More A.I. computing will result in increased demand for cooling systems. 

Picks and shovels theme. Data centres, especially, will need more and more air conditioning.

Will benefit particularly from the rise of data centres which need a lot of cooling. Happy this has done well.

It makes AC units which are needed for AI systems. He still owns and feels there is still lots of room to run.

Having to cool data centres will be part of its business, and will see lots of growth. ROIC is 29%, and that's huge compared to competitors like HON. WACC is 12%. Dividend's grown roughly 40% over the past 10 years, and the return's been 35%. US homegrown, so no tariff concerns. Yield is 0.38%.

Small cap, extremely volatile, so start with a small 1/2 position. If he were an investor at home with $10k to invest, he'd put in $5k today. That gets the dividends coming in. See what happens with the growth and the economy. If stock falls but the metrics are good, that's the chance to buy the other half.