CSW INDUSTRIALS INC (NASDAQ:CSWI) can be considered a quality stock. Here's why.

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.

Looking into the quality metrics of CSW INDUSTRIALS INC

• The 5-year revenue growth of CSW INDUSTRIALS INC has been remarkable, with 18.37% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of CSW INDUSTRIALS INC stands at 37.84%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• 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.
• With a favorable Profit Quality (5-year) ratio of 116.0%, CSW INDUSTRIALS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 22.86%, CSW INDUSTRIALS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• CSW INDUSTRIALS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple 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. 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. These ratings would make CSWI suitable for quality investing!

Our latest full fundamental report of CSWI contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.