CSW INDUSTRIALS INC (CSWI) Stock Fundamental Analysis
NASDAQ:CSWI - Nasdaq - US1264021064 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CSWI. CSWI was compared to 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. CSWI shows excellent growth, but is valued quite expensive already. This makes CSWI very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CSWI had positive earnings in the past year.
CSWI had a positive operating cash flow in the past year.
Each year in the past 5 years CSWI has been profitable.
In the past 5 years CSWI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 9.88%, CSWI is doing good in the industry, outperforming 60.98% of the companies in the same industry.
The Return On Equity of CSWI (12.77%) is comparable to the rest of the industry.
CSWI's Return On Invested Capital of 11.20% is in line compared to the rest of the industry. CSWI outperforms 56.10% of its industry peers.
CSWI had an Average Return On Invested Capital over the past 3 years of 10.84%. This is below the industry average of 12.93%.
The 3 year average ROIC (10.84%) for CSWI is below the current ROIC(11.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 12.77% | ||
| ROIC | 11.2% |
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 Profit Margin of 15.53%. This is amongst the best in the industry. CSWI outperforms 82.93% of its industry peers.
In the last couple of years the Profit Margin of CSWI has remained more or less at the same level.
With an excellent Operating Margin value of 21.03%, CSWI belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
In the last couple of years the Operating Margin of CSWI has grown nicely.
CSWI has a Gross Margin of 44.85%. This is amongst the best in the industry. CSWI outperforms 92.68% of its industry peers.
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 | 21.03% | ||
| PM (TTM) | 15.53% | ||
| GM | 44.85% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSWI is still creating some value.
CSWI has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSWI has more shares outstanding
The debt/assets ratio for CSWI has been reduced compared to a year ago.
2.2 Solvency
CSWI has an Altman-Z score of 11.97. This indicates that CSWI is financially healthy and has little risk of bankruptcy at the moment.
CSWI has a better Altman-Z score (11.97) than 97.56% 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 | 11.97 |
ROIC/WACC1.08
WACC10.34%
2.3 Liquidity
A Current Ratio of 4.18 indicates that CSWI has no problem at all paying its short term obligations.
CSWI's Current ratio of 4.18 is amongst the best of the industry. CSWI outperforms 87.80% of its industry peers.
A Quick Ratio of 2.68 indicates that CSWI has no problem at all paying its short term obligations.
The Quick ratio of CSWI (2.68) is better than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
CSWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.35%, which is quite impressive.
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 10.39% 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)34.35%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%171.19%
Revenue 1Y (TTM)10.39%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%10.68%
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 17.98% yearly.
The Revenue is expected to grow by 10.14% on average over the next years. This is quite good.
EPS Next Y32.5%
EPS Next 2Y22.22%
EPS Next 3Y17.98%
EPS Next 5YN/A
Revenue Next Year12.09%
Revenue Next 2Y11.86%
Revenue Next 3Y10.14%
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.
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
Based on the Price/Earnings ratio of 35.65, the valuation of CSWI can be described as expensive.
CSWI's Price/Earnings ratio is a bit more expensive when compared to the industry. CSWI is more expensive than 75.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of CSWI to the average of the S&P500 Index (28.29), we can say CSWI is valued slightly more expensively.
CSWI is valuated quite expensively with a Price/Forward Earnings ratio of 30.59.
75.61% of the companies in the same industry are cheaper than CSWI, based on the Price/Forward Earnings ratio.
CSWI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 30.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWI is valued a bit more expensive than the industry average as 78.05% of the companies are valued more cheaply.
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 65.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.1 | ||
| EV/EBITDA | 21.59 |
4.3 Compensation for Growth
CSWI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CSWI may justify a higher PE ratio.
A more expensive valuation may be justified as CSWI's earnings are expected to grow with 17.98% in the coming years.
PEG (NY)1.1
PEG (5Y)1.9
EPS Next 2Y22.22%
EPS Next 3Y17.98%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, CSWI is not a good candidate for dividend investing.
The stock price of CSWI dropped by -23.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
CSWI's Dividend Yield is comparable with the industry average which is at 1.27.
Compared to an average S&P500 Dividend Yield of 2.52, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
10.13% of the earnings are spent on dividend by CSWI. This is a low number and sustainable payout ratio.
DP10.13%
EPS Next 2Y22.22%
EPS Next 3Y17.98%
298.43
+3.07 (+1.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.54%
Inst Owner Change0%
Ins Owners1.24%
Ins Owner Change-6.32%
Market Cap5.01B
Analysts75
Price Target381.82 (27.94%)
Short Float %2.58%
Short Ratio3.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend0.76
Dividend Growth(5Y)N/A
DP10.13%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.55%
Min EPS beat(2)2.34%
Max EPS beat(2)8.75%
EPS beat(4)4
Avg EPS beat(4)7.76%
Min EPS beat(4)2.34%
Max EPS beat(4)11.25%
EPS beat(8)6
Avg EPS beat(8)-0.62%
EPS beat(12)9
Avg EPS beat(12)5.03%
EPS beat(16)11
Avg EPS beat(16)1.9%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)3.07%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)11
Avg Revenue beat(16)2.98%
PT rev (1m)0%
PT rev (3m)-9.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.65 | ||
| Fwd PE | 30.59 | ||
| P/S | 5.83 | ||
| P/FCF | 34.1 | ||
| P/OCF | 30.63 | ||
| P/B | 4.8 | ||
| P/tB | 11.87 | ||
| EV/EBITDA | 21.59 |
EPS(TTM)8.37
EY2.8%
EPS(NY)9.76
Fwd EY3.27%
FCF(TTM)8.75
FCFY2.93%
OCF(TTM)9.74
OCFY3.26%
SpS51.17
BVpS62.22
TBVpS25.14
PEG (NY)1.1
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 12.77% | ||
| ROCE | 14.85% | ||
| ROIC | 11.2% | ||
| ROICexc | 13.59% | ||
| ROICexgc | 35.86% | ||
| OM | 21.03% | ||
| PM (TTM) | 15.53% | ||
| GM | 44.85% | ||
| FCFM | 17.1% |
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-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.11% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.63% | ||
| Profit Quality | 110.12% | ||
| Current Ratio | 4.18 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 11.97 |
F-Score7
WACC10.34%
ROIC/WACC1.08
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)34.35%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%171.19%
EPS Next Y32.5%
EPS Next 2Y22.22%
EPS Next 3Y17.98%
EPS Next 5YN/A
Revenue 1Y (TTM)10.39%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%10.68%
Revenue Next Year12.09%
Revenue Next 2Y11.86%
Revenue Next 3Y10.14%
Revenue Next 5YN/A
EBIT growth 1Y16.79%
EBIT growth 3Y33.42%
EBIT growth 5Y21.38%
EBIT Next Year45.41%
EBIT Next 3Y20.43%
EBIT Next 5YN/A
FCF growth 1Y115.63%
FCF growth 3Y36.97%
FCF growth 5Y23.13%
OCF growth 1Y95.33%
OCF growth 3Y35.33%
OCF growth 5Y22.45%