Exploring CSW INDUSTRIALS INC (NASDAQ:CSWI)s quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CSW INDUSTRIALS INC (NASDAQ:CSWI) is suited for quality investing. Investors should of couse do their own research, but we spotted CSW INDUSTRIALS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:CSWI highlighted

• Over the past 5 years, CSW INDUSTRIALS INC has experienced impressive revenue growth, with 18.37% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a notable ROIC excluding cash and goodwill at 30.51%, CSW INDUSTRIALS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• CSW INDUSTRIALS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.52, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• CSW INDUSTRIALS INC exhibits impressive Profit Quality (5-year) with a 115.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• CSW INDUSTRIALS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 22.85%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• CSW INDUSTRIALS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental Analysis Observations

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

CSWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making CSWI a very profitable company, without any liquidiy or solvency issues. CSWI is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, CSWI could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of CSWI

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.