CSW INDUSTRIALS INC (CSWI)
US1264021064 - Common Stock
Overall CSWI gets a fundamental rating of 6 out of 10. We evaluated CSWI against 39 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 is quite expensive at the moment. It does show a decent growth rate. These ratings could make CSWI a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year CSWI was profitable.
CSWI had a positive operating cash flow in the past year.
CSWI had positive earnings in each of the past 5 years.
In the past 5 years CSWI always reported a positive cash flow from operatings.
1.2 Ratios
CSWI has a Return On Assets of 8.51%. This is comparable to the rest of the industry: CSWI outperforms 56.41% of its industry peers.
CSWI has a Return On Equity (11.22%) which is comparable to the rest of the industry.
The Return On Invested Capital of CSWI (11.22%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CSWI is below the industry average of 13.64%.
The last Return On Invested Capital (11.22%) for CSWI is above the 3 year average (10.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.22% | ||
| ROIC | 11.22% |
ROA(3y)8.55%
ROA(5y)8.52%
ROE(3y)16.33%
ROE(5y)15.03%
ROIC(3y)10.84%
ROIC(5y)11.02%
1.3 Margins
CSWI has a better Profit Margin (13.77%) than 74.36% of its industry peers.
CSWI's Profit Margin has been stable in the last couple of years.
The Operating Margin of CSWI (21.26%) is better than 89.74% of its industry peers.
CSWI's Operating Margin has improved in the last couple of years.
CSWI's Gross Margin of 45.12% is amongst the best of the industry. CSWI outperforms 92.31% of its industry peers.
CSWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.26% | ||
| PM (TTM) | 13.77% | ||
| GM | 45.12% |
OM growth 3Y7.88%
OM growth 5Y3.08%
PM growth 3Y10.25%
PM growth 5Y-0.31%
GM growth 3Y0.15%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
CSWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CSWI has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CSWI has been increased compared to 5 years ago.
Compared to 1 year ago, CSWI has an improved debt to assets ratio.
2.2 Solvency
CSWI has an Altman-Z score of 14.51. This indicates that CSWI is financially healthy and has little risk of bankruptcy at the moment.
CSWI has a better Altman-Z score (14.51) than 94.87% of its industry peers.
CSWI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.51 |
ROIC/WACC1.08
WACC10.37%
2.3 Liquidity
A Current Ratio of 3.82 indicates that CSWI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.82, CSWI belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
CSWI has a Quick Ratio of 2.67. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI's Quick ratio of 2.67 is amongst the best of the industry. CSWI outperforms 87.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.68% over the past year.
The Earnings Per Share has been growing by 18.80% on average over the past years. This is quite good.
Looking at the last year, CSWI shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
CSWI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.75% yearly.
EPS 1Y (TTM)10.68%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%17.1%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%11.92%
3.2 Future
The Earnings Per Share is expected to grow by 21.04% on average over the next years. This is a very strong growth
CSWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.76% yearly.
EPS Next Y29.02%
EPS Next 2Y21.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.9%
Revenue Next 2Y8.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.67, CSWI can be considered very expensive at the moment.
84.62% of the companies in the same industry are cheaper than CSWI, based on the Price/Earnings ratio.
CSWI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.65.
CSWI is valuated quite expensively with a Price/Forward Earnings ratio of 42.83.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSWI indicates a slightly more expensive valuation: CSWI is more expensive than 79.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.50, CSWI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 42.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWI is valued expensively inside the industry as 82.05% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSWI indicates a slightly more expensive valuation: CSWI is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.97 | ||
| EV/EBITDA | 29.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSWI does not grow enough to justify the current Price/Earnings ratio.
CSWI has a very decent profitability rating, which may justify a higher PE ratio.
CSWI's earnings are expected to grow with 21.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.92
PEG (5Y)2.96
EPS Next 2Y21.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.24%, CSWI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.95, CSWI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.22, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
5.2 History
CSWI has been paying a dividend for over 5 years, so it has already some track record.
CSWI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
10.75% of the earnings are spent on dividend by CSWI. This is a low number and sustainable payout ratio.
DP10.75%
EPS Next 2Y21.04%
EPS Next 3YN/A
CSW INDUSTRIALS INC
NASDAQ:CSWI (11/18/2024, 8:16:51 PM)
After market: 409.76 0 (0%)409.76
+5.78 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.67 | ||
| Fwd PE | 42.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.92
PEG (5Y)2.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.26% | ||
| PM (TTM) | 13.77% | ||
| GM | 45.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.68%
EPS 3Y34.56%
EPS 5Y
EPS Q2Q%
EPS Next Y29.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.53%
Revenue growth 3Y23.67%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y