Is NASDAQ:CSWI suited for quality investing?

In this article we will dive into CSW INDUSTRIALS INC (NASDAQ:CSWI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CSW INDUSTRIALS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NASDAQ:CSWI may be interesting for quality investors.

• CSW INDUSTRIALS INC has achieved substantial revenue growth over the past 5 years, with a 18.37% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 29.59%, CSW INDUSTRIALS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 2.35, CSW INDUSTRIALS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 115.0%, CSW INDUSTRIALS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 22.85%, CSW INDUSTRIALS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• CSW INDUSTRIALS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, CSWI scores 6 out of 10 in our fundamental rating. CSWI was compared to 45 industry peers in the Building Products industry. CSWI gets an excellent profitability rating and is at the same time showing great financial health properties. 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.

Check the latest full fundamental report of CSWI for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.