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Should you consider CSW INDUSTRIALS INC (NASDAQ:CSWI) for quality investing?

By Mill Chart

Last update: Apr 15, 2024

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 course 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.

A Deep Dive into CSW INDUSTRIALS INC's Quality Metrics.

  • CSW INDUSTRIALS INC has achieved substantial revenue growth over the past 5 years, with a 18.37% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 37.84%, CSW INDUSTRIALS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • The Debt/Free Cash Flow Ratio of CSW INDUSTRIALS INC stands at 0.94, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • CSW INDUSTRIALS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 116.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of CSW INDUSTRIALS INC has been remarkable, with 22.86% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of CSW INDUSTRIALS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall CSWI gets a fundamental rating of 6 out of 10. We evaluated CSWI against 43 industry peers in the Building Products industry. CSWI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CSWI is quite expensive at the moment. 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 quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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