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Reasonable Growth, Debt Levels, and a High ROIC Make CSW INDUSTRIALS INC (NASDAQ:CSWI) Appealing to Quality Investors.

By Mill Chart

Last update: Sep 10, 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.


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Exploring Why NASDAQ:CSWI Holds Appeal for Quality Investors.

  • CSW INDUSTRIALS INC has shown strong performance in revenue growth over the past 5 years, with a 17.75% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of CSW INDUSTRIALS INC stands at 36.31%, 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.
  • With a Debt/Free Cash Flow Ratio of 0.71, CSW INDUSTRIALS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • CSW INDUSTRIALS INC exhibits impressive Profit Quality (5-year) with a 122.0% 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.
  • With a robust 5-year EBIT growth of 21.38%, 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 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.

How does the complete fundamental picture look for NASDAQ:CSWI?

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 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Building Products industry. CSWI gets an excellent profitability rating and is at the same time showing great financial health properties. CSWI is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make CSWI a good candidate for quality investing.

Check the latest full fundamental report of CSWI for a complete fundamental analysis.

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. 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.

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