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 40 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making CSWI a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, CSWI is valued expensive at the moment. These ratings would make CSWI suitable 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.
CSWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.88%, CSWI is in line with its industry, outperforming 60.00% of the companies in the same industry.
CSWI's Return On Equity of 12.77% is in line compared to the rest of the industry. CSWI outperforms 52.50% of its industry peers.
CSWI has a Return On Invested Capital (11.20%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSWI is below the industry average of 13.20%.
The last Return On Invested Capital (11.20%) for CSWI is above the 3 year average (10.84%), which is a sign of increasing profitability.
| 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
The Profit Margin of CSWI (15.53%) is better than 82.50% of its industry peers.
In the last couple of years the Profit Margin of CSWI has remained more or less at the same level.
CSWI's Operating Margin of 21.03% is amongst the best of the industry. CSWI outperforms 90.00% of its industry peers.
CSWI's Operating Margin has improved in the last couple of years.
CSWI has a Gross Margin of 44.85%. This is amongst the best in the industry. CSWI outperforms 92.50% 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
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.
CSWI has more shares outstanding than it did 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 12.36. This indicates that CSWI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.36, CSWI belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
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 | 12.36 |
ROIC/WACC1.06
WACC10.52%
2.3 Liquidity
A Current Ratio of 4.18 indicates that CSWI has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.18, CSWI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
CSWI has a Quick Ratio of 2.68. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI has a Quick ratio of 2.68. This is amongst the best in the industry. CSWI outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.35% over the past year.
Measured over the past years, CSWI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.80% on average per year.
The Revenue has grown by 10.39% in the past year. This is quite good.
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
Based on estimates for the next years, CSWI will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.06% on average per year.
Based on estimates for the next years, CSWI will show a quite strong growth in Revenue. The Revenue will grow by 8.72% on average per year.
EPS Next Y32.38%
EPS Next 2Y22.37%
EPS Next 3Y18.06%
EPS Next 5YN/A
Revenue Next Year12.12%
Revenue Next 2Y10.11%
Revenue Next 3Y8.72%
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 36.10, CSWI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CSWI is valued a bit more expensive than 77.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CSWI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 30.90, CSWI can be considered very expensive at the moment.
CSWI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CSWI is more expensive than 77.50% of the companies in the same industry.
CSWI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.1 | ||
| Fwd PE | 30.9 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than CSWI, based on the Enterprise Value to EBITDA ratio.
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 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.53 | ||
| EV/EBITDA | 22.49 |
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 18.06% in the coming years.
PEG (NY)1.11
PEG (5Y)1.92
EPS Next 2Y22.37%
EPS Next 3Y18.06%
5. Dividend
5.1 Amount
CSWI has a yearly dividend return of 0.30%, which is pretty low.
In the last 3 months the price of CSWI has falen by -29.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.10, CSWI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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
CSWI pays out 10.13% of its income as dividend. This is a sustainable payout ratio.
DP10.13%
EPS Next 2Y22.37%
EPS Next 3Y18.06%
302.16
-8.21 (-2.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners83.12%
Inst Owner Change-0.13%
Ins Owners1.32%
Ins Owner Change-2.98%
Market Cap5.07B
Analysts76.36
Price Target409.84 (35.64%)
Short Float %2.1%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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)-2.89%
PT rev (3m)19.94%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)0.66%
EPS NY rev (1m)0.68%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)3.25%
Revenue NQ rev (3m)7.26%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.1 | ||
| Fwd PE | 30.9 | ||
| P/S | 5.91 | ||
| P/FCF | 34.53 | ||
| P/OCF | 31.01 | ||
| P/B | 4.86 | ||
| P/tB | 12.02 | ||
| EV/EBITDA | 22.49 |
EPS(TTM)8.37
EY2.77%
EPS(NY)9.78
Fwd EY3.24%
FCF(TTM)8.75
FCFY2.9%
OCF(TTM)9.74
OCFY3.22%
SpS51.17
BVpS62.22
TBVpS25.14
PEG (NY)1.11
PEG (5Y)1.92
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 | 12.36 |
F-Score7
WACC10.52%
ROIC/WACC1.06
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 Y32.38%
EPS Next 2Y22.37%
EPS Next 3Y18.06%
EPS Next 5YN/A
Revenue 1Y (TTM)10.39%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%10.68%
Revenue Next Year12.12%
Revenue Next 2Y10.11%
Revenue Next 3Y8.72%
Revenue Next 5YN/A
EBIT growth 1Y16.79%
EBIT growth 3Y33.42%
EBIT growth 5Y21.38%
EBIT Next Year45.35%
EBIT Next 3Y18.8%
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%