CSW INDUSTRIALS INC (CSWI) Stock Fundamental Analysis
NASDAQ:CSWI - Nasdaq - US1264021064 - Common Stock
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, CSWI is valued expensive at the moment. These ratings could make CSWI a good candidate for 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.
Each year in the past 5 years CSWI has been profitable.
Each year in the past 5 years CSWI had a positive operating cash flow.
1.2 Ratios
CSWI has a Return On Assets (8.51%) which is in line with its industry peers.
CSWI has a Return On Equity (11.22%) which is in line with its industry peers.
CSWI's Return On Invested Capital of 11.22% is in line compared to the rest of the industry. CSWI outperforms 52.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSWI is below the industry average of 13.18%.
The 3 year average ROIC (10.84%) for CSWI is below the current ROIC(11.22%), indicating increased profibility in the last year.
| 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's Profit Margin of 13.77% is fine compared to the rest of the industry. CSWI outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of CSWI has remained more or less at the same level.
Looking at the Operating Margin, with a value of 21.26%, CSWI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CSWI has grown nicely.
Looking at the Gross Margin, with a value of 45.12%, CSWI belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
In the last couple of years the Gross Margin of CSWI has remained more or less at the same level.
| 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.
The debt/assets ratio for CSWI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 14.08 indicates that CSWI is not in any danger for bankruptcy at the moment.
The Altman-Z score of CSWI (14.08) is better than 95.00% of its industry peers.
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 | 14.08 |
ROIC/WACC1.05
WACC10.67%
2.3 Liquidity
CSWI has a Current Ratio of 3.82. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI's Current ratio of 3.82 is amongst the best of the industry. CSWI outperforms 85.00% of its industry peers.
A Quick Ratio of 2.67 indicates that CSWI has no problem at all paying its short term obligations.
CSWI has a Quick ratio of 2.67. This is amongst the best in the industry. CSWI outperforms 85.00% 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.
The Revenue has grown by 8.53% in the past year. This is quite good.
The Revenue has been growing by 17.75% on average over the past years. This is quite good.
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
Based on estimates for the next years, CSWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.40% on average per year.
The Revenue is expected to grow by 8.54% on average over the next years. This is quite good.
EPS Next Y31.48%
EPS Next 2Y22.47%
EPS Next 3Y18.4%
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y9.51%
Revenue Next 3Y8.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 53.92, CSWI can be considered very expensive at the moment.
CSWI's Price/Earnings ratio is rather expensive when compared to the industry. CSWI is more expensive than 82.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. CSWI is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 40.52, the valuation of CSWI can be described as expensive.
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 77.50% of the companies listed in the same industry.
CSWI is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.92 | ||
| Fwd PE | 40.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWI is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
CSWI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CSWI is more expensive than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.77 | ||
| EV/EBITDA | 28.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CSWI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CSWI's earnings are expected to grow with 18.40% in the coming years.
PEG (NY)1.71
PEG (5Y)2.87
EPS Next 2Y22.47%
EPS Next 3Y18.4%
5. Dividend
5.1 Amount
CSWI has a yearly dividend return of 0.25%, which is pretty low.
Compared to an average industry Dividend Yield of 1.05, CSWI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
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)N/A
Div Incr Years5
Div Non Decr Years5
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 2Y22.47%
EPS Next 3Y18.4%
CSW INDUSTRIALS INC
NASDAQ:CSWI (1/21/2025, 8:00:00 PM)
After market: 396.86 0 (0%)396.86
+6.65 (+1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.12%
Inst Owner Change-0.03%
Ins Owners1.32%
Ins Owner Change-2.37%
Market Cap6.68B
Analysts78
Price Target422.03 (6.34%)
Short Float %2.06%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
Yearly Dividend0.76
Dividend Growth(5Y)N/A
DP10.75%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.8%
Min EPS beat(2)2.34%
Max EPS beat(2)11.25%
EPS beat(4)3
Avg EPS beat(4)-7.07%
Min EPS beat(4)-50.56%
Max EPS beat(4)11.25%
EPS beat(8)6
Avg EPS beat(8)2.18%
EPS beat(12)9
Avg EPS beat(12)6.33%
EPS beat(16)10
Avg EPS beat(16)-2.05%
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)2.36%
Max Revenue beat(2)3.07%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)3.07%
Revenue beat(8)5
Avg Revenue beat(8)-0.45%
Revenue beat(12)8
Avg Revenue beat(12)0.96%
Revenue beat(16)12
Avg Revenue beat(16)4.11%
PT rev (1m)4.75%
PT rev (3m)22.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.11%
EPS NY rev (1m)0%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.05%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.92 | ||
| Fwd PE | 40.52 | ||
| P/S | 7.95 | ||
| P/FCF | 36.77 | ||
| P/OCF | 33.56 | ||
| P/B | 6.48 | ||
| P/tB | 15.14 | ||
| EV/EBITDA | 28.84 |
EPS(TTM)7.36
EY1.85%
EPS(NY)9.79
Fwd EY2.47%
FCF(TTM)10.79
FCFY2.72%
OCF(TTM)11.83
OCFY2.98%
SpS49.94
BVpS61.25
TBVpS26.22
PEG (NY)1.71
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.51% | ||
| ROE | 11.22% | ||
| ROCE | 14.88% | ||
| ROIC | 11.22% | ||
| ROICexc | 14.53% | ||
| ROICexgc | 39.89% | ||
| OM | 21.26% | ||
| PM (TTM) | 13.77% | ||
| GM | 45.12% | ||
| FCFM | 21.61% |
ROA(3y)8.55%
ROA(5y)8.52%
ROE(3y)16.33%
ROE(5y)15.03%
ROIC(3y)10.84%
ROIC(5y)11.02%
ROICexc(3y)11.07%
ROICexc(5y)11.38%
ROICexgc(3y)28.91%
ROICexgc(5y)27.45%
ROCE(3y)14.37%
ROCE(5y)14.62%
ROICexcg growth 3Y25.85%
ROICexcg growth 5Y1.67%
ROICexc growth 3Y27.32%
ROICexc growth 5Y-4.24%
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%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 43.83% | ||
| Cap/Sales | 2.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.18% | ||
| Profit Quality | 157.01% | ||
| Current Ratio | 3.82 | ||
| Quick Ratio | 2.67 | ||
| Altman-Z | 14.08 |
F-Score6
WACC10.67%
ROIC/WACC1.05
Cap/Depr(3y)42%
Cap/Depr(5y)48.26%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.3%
Profit Quality(3y)112.43%
Profit Quality(5y)121.74%
High Growth Momentum
Growth
EPS 1Y (TTM)10.68%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%17.1%
EPS Next Y31.48%
EPS Next 2Y22.47%
EPS Next 3Y18.4%
EPS Next 5YN/A
Revenue 1Y (TTM)8.53%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%11.92%
Revenue Next Year11.54%
Revenue Next 2Y9.51%
Revenue Next 3Y8.54%
Revenue Next 5YN/A
EBIT growth 1Y18.94%
EBIT growth 3Y33.42%
EBIT growth 5Y21.38%
EBIT Next Year45.04%
EBIT Next 3Y17.56%
EBIT Next 5YN/A
FCF growth 1Y211.39%
FCF growth 3Y36.97%
FCF growth 5Y23.13%
OCF growth 1Y170.25%
OCF growth 3Y35.33%
OCF growth 5Y22.45%