CSW INDUSTRIALS INC (CSWI) Stock Fundamental Analysis
USA - NASDAQ:CSWI - US1264021064 - Common Stock
305.1 USD
+0.43 (+0.14%)
305.1 USD
0 (0%)
CSWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. CSWI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CSWI shows excellent growth, but is valued quite expensive already. These ratings could make CSWI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
CSWI had positive earnings in the past year.
In the past year CSWI had a positive cash flow from operations.
CSWI had positive earnings in each of the past 5 years.
Each year in the past 5 years CSWI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CSWI (9.91%) is better than 66.67% of its industry peers.
CSWI's Return On Equity of 12.74% is in line compared to the rest of the industry. CSWI outperforms 52.38% of its industry peers.
With a Return On Invested Capital value of 11.12%, CSWI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
CSWI had an Average Return On Invested Capital over the past 3 years of 11.71%. This is in line with the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 12.74% | ||
| ROIC | 11.12% |
ROA(3y)9.63%
ROA(5y)8.02%
ROE(3y)15.86%
ROE(5y)14.28%
ROIC(3y)11.71%
ROIC(5y)9.95%
1.3 Margins
CSWI has a better Profit Margin (15.56%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of CSWI has grown nicely.
Looking at the Operating Margin, with a value of 20.80%, CSWI belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
CSWI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.78%, CSWI belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
CSWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.8% | ||
| PM (TTM) | 15.56% | ||
| GM | 44.78% |
OM growth 3Y10.18%
OM growth 5Y3.71%
PM growth 3Y13.65%
PM growth 5Y5.61%
GM growth 3Y3.09%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CSWI is destroying value.
The number of shares outstanding for CSWI has been increased compared to 1 year ago.
CSWI has more shares outstanding than it did 5 years ago.
CSWI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CSWI has an Altman-Z score of 12.21. This indicates that CSWI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.21, CSWI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
There is no outstanding debt for CSWI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.21 |
ROIC/WACC0.7
WACC15.82%
2.3 Liquidity
CSWI has a Current Ratio of 4.03. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI's Current ratio of 4.03 is amongst the best of the industry. CSWI outperforms 88.10% of its industry peers.
A Quick Ratio of 2.70 indicates that CSWI has no problem at all paying its short term obligations.
CSWI's Quick ratio of 2.70 is amongst the best of the industry. CSWI outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.17% over the past year.
Measured over the past years, CSWI shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.50% on average per year.
CSWI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.77%.
Measured over the past years, CSWI shows a quite strong growth in Revenue. The Revenue has been growing by 17.88% on average per year.
EPS 1Y (TTM)30.17%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%6.37%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%9.34%
3.2 Future
CSWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
CSWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.
EPS Next Y13.94%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue Next Year21.15%
Revenue Next 2Y13.99%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.89, CSWI can be considered very expensive at the moment.
73.81% of the companies in the same industry are cheaper than CSWI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CSWI to the average of the S&P500 Index (25.83), we can say CSWI is valued slightly more expensively.
CSWI is valuated quite expensively with a Price/Forward Earnings ratio of 31.50.
Based on the Price/Forward Earnings ratio, CSWI is valued a bit more expensive than 73.81% of the companies in the same industry.
CSWI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWI is valued a bit more expensive than the industry average as 73.81% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as CSWI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.72 | ||
| EV/EBITDA | 21.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CSWI has a very decent profitability rating, which may justify a higher PE ratio.
CSWI's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)1.67
EPS Next 2Y12.49%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, CSWI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.29, CSWI has a dividend in line with its industry peers.
With a Dividend Yield of 0.35, CSWI pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
On average, the dividend of CSWI grows each year by 10.61%, which is quite nice.
CSWI has been paying a dividend for over 5 years, so it has already some track record.
As CSWI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.61%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
10.67% of the earnings are spent on dividend by CSWI. This is a low number and sustainable payout ratio.
The dividend of CSWI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP10.67%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
305.1
+0.43 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.78%
Ins Owners1.32%
Ins Owner Change-6.6%
Market Cap5.13B
Revenue(TTM)878.30M
Net Income(TTM)136.65M
Analysts74.55
Price Target348.43 (14.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.9
Dividend Growth(5Y)10.61%
DP10.67%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.19%
Min EPS beat(2)-4.38%
Max EPS beat(2)8.75%
EPS beat(4)3
Avg EPS beat(4)4.49%
Min EPS beat(4)-4.38%
Max EPS beat(4)11.25%
EPS beat(8)5
Avg EPS beat(8)-3.47%
EPS beat(12)8
Avg EPS beat(12)3.76%
EPS beat(16)11
Avg EPS beat(16)4.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.12%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)3.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)6
Avg Revenue beat(12)-0.36%
Revenue beat(16)10
Avg Revenue beat(16)1.98%
PT rev (1m)1.07%
PT rev (3m)-8.74%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)10.91%
Revenue NQ rev (3m)11.24%
Revenue NY rev (1m)8.69%
Revenue NY rev (3m)11.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.5 | ||
| P/S | 5.84 | ||
| P/FCF | 33.72 | ||
| P/OCF | 30.46 | ||
| P/B | 4.78 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 21.73 |
EPS(TTM)8.5
EY2.79%
EPS(NY)9.69
Fwd EY3.17%
FCF(TTM)9.05
FCFY2.97%
OCF(TTM)10.02
OCFY3.28%
SpS52.25
BVpS63.79
TBVpS26.78
PEG (NY)2.57
PEG (5Y)1.67
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 12.74% | ||
| ROCE | 14.83% | ||
| ROIC | 11.12% | ||
| ROICexc | 13.62% | ||
| ROICexgc | 35.67% | ||
| OM | 20.8% | ||
| PM (TTM) | 15.56% | ||
| GM | 44.78% | ||
| FCFM | 17.32% |
ROA(3y)9.63%
ROA(5y)8.02%
ROE(3y)15.86%
ROE(5y)14.28%
ROIC(3y)11.71%
ROIC(5y)9.95%
ROICexc(3y)12.72%
ROICexc(5y)10.61%
ROICexgc(3y)33.39%
ROICexgc(5y)27.91%
ROCE(3y)15.62%
ROCE(5y)13.27%
ROICexgc growth 3Y17.93%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y17.1%
ROICexc growth 5Y-4.56%
OM growth 3Y10.18%
OM growth 5Y3.71%
PM growth 3Y13.65%
PM growth 5Y5.61%
GM growth 3Y3.09%
GM growth 5Y-0.46%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 37.82% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 38.14 | ||
| Cash Conversion | 74.61% | ||
| Profit Quality | 111.3% | ||
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 12.21 |
F-Score7
WACC15.82%
ROIC/WACC0.7
Cap/Depr(3y)40.43%
Cap/Depr(5y)40.42%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.08%
Profit Quality(3y)122.73%
Profit Quality(5y)118.4%
High Growth Momentum
Growth
EPS 1Y (TTM)30.17%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%6.37%
EPS Next Y13.94%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue 1Y (TTM)10.77%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%9.34%
Revenue Next Year21.15%
Revenue Next 2Y13.99%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
EBIT growth 1Y14.79%
EBIT growth 3Y23.32%
EBIT growth 5Y22.25%
EBIT Next Year43.64%
EBIT Next 3Y20.47%
EBIT Next 5YN/A
FCF growth 1Y2.94%
FCF growth 3Y41.75%
FCF growth 5Y21.06%
OCF growth 1Y2.45%
OCF growth 3Y34.56%
OCF growth 5Y19.22%
CSW INDUSTRIALS INC / CSWI FAQ
What is the fundamental rating for CSWI stock?
ChartMill assigns a fundamental rating of 6 / 10 to CSWI.
What is the valuation status of CSW INDUSTRIALS INC (CSWI) stock?
ChartMill assigns a valuation rating of 1 / 10 to CSW INDUSTRIALS INC (CSWI). This can be considered as Overvalued.
What is the profitability of CSWI stock?
CSW INDUSTRIALS INC (CSWI) has a profitability rating of 7 / 10.
What is the earnings growth outlook for CSW INDUSTRIALS INC?
The Earnings per Share (EPS) of CSW INDUSTRIALS INC (CSWI) is expected to grow by 13.94% in the next year.
Can you provide the dividend sustainability for CSWI stock?
The dividend rating of CSW INDUSTRIALS INC (CSWI) is 5 / 10 and the dividend payout ratio is 10.67%.