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Why Quality Investors May Find CSW INDUSTRIALS INC (NASDAQ:CSWI) Attractive.

By Mill Chart

Last update: Jan 9, 2024

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.

Some of the quality metrics of NASDAQ:CSWI highlighted

  • The 5-year revenue growth of CSW INDUSTRIALS INC has been remarkable, with 18.37% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • CSW INDUSTRIALS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 34.21% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of CSW INDUSTRIALS INC stands at 1.14, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • CSW INDUSTRIALS INC exhibits impressive Profit Quality (5-year) with a 116.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • CSW INDUSTRIALS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 22.86%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • The EBIT 5-year growth of CSW INDUSTRIALS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

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.

We assign a fundamental rating of 6 out of 10 to CSWI. CSWI was compared to 45 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 is valied quite expensively at the moment, while 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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.