CSW INDUSTRIALS INC (CSW) Stock Fundamental Analysis
NYSE:CSW - New York Stock Exchange, Inc. - US1264021064 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to CSW. CSW was compared to 41 industry peers in the Building Products industry. CSW gets an excellent profitability rating and is at the same time showing great financial health properties. CSW is valued quite expensively, but it does show have an excellent growth rating. This makes CSW very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CSW had positive earnings in the past year.
CSW had a positive operating cash flow in the past year.
Each year in the past 5 years CSW has been profitable.
Each year in the past 5 years CSW had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.91%, CSW is doing good in the industry, outperforming 63.41% of the companies in the same industry.
With a Return On Equity value of 12.74%, CSW perfoms like the industry average, outperforming 51.22% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.12%, CSW is in line with its industry, outperforming 58.54% of the companies in the same industry.
CSW had an Average Return On Invested Capital over the past 3 years of 11.71%. This is in line with the industry average of 12.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 12.74% | ||
| ROIC | 11.12% |
ROA(3y)9.63%
ROA(5y)8.02%
ROE(3y)15.86%
ROE(5y)14.28%
ROIC(3y)11.71%
ROIC(5y)9.95%
1.3 Margins
CSW has a better Profit Margin (15.56%) than 82.93% of its industry peers.
In the last couple of years the Profit Margin of CSW has grown nicely.
CSW has a better Operating Margin (20.80%) than 87.80% of its industry peers.
CSW's Operating Margin has improved in the last couple of years.
CSW has a Gross Margin of 44.78%. This is amongst the best in the industry. CSW outperforms 87.80% of its industry peers.
In the last couple of years the Gross Margin of CSW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.8% | ||
| PM (TTM) | 15.56% | ||
| GM | 44.78% |
OM growth 3Y10.18%
OM growth 5Y3.71%
PM growth 3Y13.65%
PM growth 5Y5.61%
GM growth 3Y3.09%
GM growth 5Y-0.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CSW is still creating some value.
CSW has more shares outstanding than it did 1 year ago.
CSW has more shares outstanding than it did 5 years ago.
There is no outstanding debt for CSW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 10.33 indicates that CSW is not in any danger for bankruptcy at the moment.
CSW's Altman-Z score of 10.33 is amongst the best of the industry. CSW outperforms 97.56% of its industry peers.
There is no outstanding debt for CSW. 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 | 10.33 |
ROIC/WACC1.17
WACC9.54%
2.3 Liquidity
A Current Ratio of 4.03 indicates that CSW has no problem at all paying its short term obligations.
CSW has a Current ratio of 4.03. This is amongst the best in the industry. CSW outperforms 90.24% of its industry peers.
CSW has a Quick Ratio of 2.70. This indicates that CSW is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CSW (2.70) is better than 92.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
CSW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.32%, which is quite impressive.
The Earnings Per Share has been growing by 21.50% on average over the past years. This is a very strong growth
The Revenue has grown by 10.78% in the past year. This is quite good.
CSW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.88% yearly.
EPS 1Y (TTM)26.32%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%15.38%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%16.57%
3.2 Future
CSW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.23% yearly.
The Revenue is expected to grow by 11.36% on average over the next years. This is quite good.
EPS Next Y11.14%
EPS Next 2Y13.12%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue Next Year21%
Revenue Next 2Y14.56%
Revenue Next 3Y11.36%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.69, the valuation of CSW can be described as expensive.
Based on the Price/Earnings ratio, CSW is valued a bit more expensive than 68.29% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CSW is valued at the same level.
With a Price/Forward Earnings ratio of 22.61, CSW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSW is on the same level as its industry peers.
CSW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 22.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSW is valued a bit more expensive than 63.41% of the companies in the same industry.
CSW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.16 | ||
| EV/EBITDA | 17.47 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSW does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CSW may justify a higher PE ratio.
A more expensive valuation may be justified as CSW's earnings are expected to grow with 13.23% in the coming years.
PEG (NY)2.49
PEG (5Y)1.29
EPS Next 2Y13.12%
EPS Next 3Y13.23%
5. Dividend
5.1 Amount
CSW has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 1.15, CSW has a dividend in line with its industry peers.
With a Dividend Yield of 0.44, CSW pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
On average, the dividend of CSW grows each year by 10.61%, which is quite nice.
CSW has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)10.61%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
10.67% of the earnings are spent on dividend by CSW. This is a low number and sustainable payout ratio.
CSW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.67%
EPS Next 2Y13.12%
EPS Next 3Y13.23%
NYSE:CSW (8/5/2025, 9:30:02 AM)
245.9
-2.2 (-0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner ChangeN/A
Ins Owners1.32%
Ins Owner ChangeN/A
Market Cap4.13B
Analysts70
Price Target344.35 (40.04%)
Short Float %3.14%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.9
Dividend Growth(5Y)10.61%
DP10.67%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.2%
Min EPS beat(2)-3.43%
Max EPS beat(2)9.83%
EPS beat(4)3
Avg EPS beat(4)5.53%
Min EPS beat(4)-3.43%
Max EPS beat(4)12.35%
EPS beat(8)5
Avg EPS beat(8)-2.51%
EPS beat(12)8
Avg EPS beat(12)4.79%
EPS beat(16)11
Avg EPS beat(16)5.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.95%
Max Revenue beat(2)-0.14%
Revenue beat(4)2
Avg Revenue beat(4)1.34%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)4.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.17%
PT rev (3m)N/A
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.31%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.69 | ||
| Fwd PE | 22.61 | ||
| P/S | 4.7 | ||
| P/FCF | 27.16 | ||
| P/OCF | 24.54 | ||
| P/B | 3.85 | ||
| P/tB | 9.18 | ||
| EV/EBITDA | 17.47 |
EPS(TTM)8.88
EY3.61%
EPS(NY)10.88
Fwd EY4.42%
FCF(TTM)9.05
FCFY3.68%
OCF(TTM)10.02
OCFY4.08%
SpS52.28
BVpS63.82
TBVpS26.8
PEG (NY)2.49
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.91% | ||
| ROE | 12.74% | ||
| ROCE | 14.83% | ||
| ROIC | 11.12% | ||
| ROICexc | 13.62% | ||
| ROICexgc | 35.67% | ||
| OM | 20.8% | ||
| PM (TTM) | 15.56% | ||
| GM | 44.78% | ||
| FCFM | 17.32% |
ROA(3y)9.63%
ROA(5y)8.02%
ROE(3y)15.86%
ROE(5y)14.28%
ROIC(3y)11.71%
ROIC(5y)9.95%
ROICexc(3y)12.72%
ROICexc(5y)10.61%
ROICexgc(3y)33.39%
ROICexgc(5y)27.91%
ROCE(3y)15.62%
ROCE(5y)13.27%
ROICexcg growth 3Y17.93%
ROICexcg growth 5Y1.82%
ROICexc growth 3Y17.1%
ROICexc growth 5Y-4.56%
OM growth 3Y10.18%
OM growth 5Y3.71%
PM growth 3Y13.65%
PM growth 5Y5.61%
GM growth 3Y3.09%
GM growth 5Y-0.46%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 37.82% | ||
| Cap/Sales | 1.85% | ||
| Interest Coverage | 38.14 | ||
| Cash Conversion | 74.61% | ||
| Profit Quality | 111.3% | ||
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 | ||
| Altman-Z | 10.33 |
F-Score7
WACC9.54%
ROIC/WACC1.17
Cap/Depr(3y)40.43%
Cap/Depr(5y)40.42%
Cap/Sales(3y)1.93%
Cap/Sales(5y)2.08%
Profit Quality(3y)122.73%
Profit Quality(5y)118.4%
High Growth Momentum
Growth
EPS 1Y (TTM)26.32%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%15.38%
EPS Next Y11.14%
EPS Next 2Y13.12%
EPS Next 3Y13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)10.78%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%16.57%
Revenue Next Year21%
Revenue Next 2Y14.56%
Revenue Next 3Y11.36%
Revenue Next 5YN/A
EBIT growth 1Y14.79%
EBIT growth 3Y23.32%
EBIT growth 5Y22.25%
EBIT Next Year43.63%
EBIT Next 3Y20.46%
EBIT Next 5YN/A
FCF growth 1Y2.94%
FCF growth 3Y41.75%
FCF growth 5Y21.06%
OCF growth 1Y2.45%
OCF growth 3Y34.56%
OCF growth 5Y19.22%