CSW INDUSTRIALS INC (CSW) Stock Fundamental Analysis
USA - NYSE:CSW - US1264021064 - Common Stock
256.83 USD
+1.06 (+0.41%)
256.831 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CSW. CSW was compared to 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making CSW a very profitable company, without any liquidiy or solvency issues. CSW is valued quite expensive, but it does show an excellent growth. This makes CSW very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CSW had positive earnings in the past year.
In the past year CSW had a positive cash flow from operations.
CSW had positive earnings in each of the past 5 years.
In the past 5 years CSW always reported a positive cash flow from operatings.
1.2 Ratios
CSW's Return On Assets of 9.05% is fine compared to the rest of the industry. CSW outperforms 68.29% of its industry peers.
With a Return On Equity value of 12.52%, CSW perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
With a Return On Invested Capital value of 9.94%, CSW perfoms like the industry average, 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 12.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 12.52% | ||
| ROIC | 9.94% |
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 (15.18%) than 80.49% of its industry peers.
In the last couple of years the Profit Margin of CSW has grown nicely.
Looking at the Operating Margin, with a value of 19.95%, CSW belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
In the last couple of years the Operating Margin of CSW has grown nicely.
With an excellent Gross Margin value of 43.82%, CSW belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
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 | 19.95% | ||
| PM (TTM) | 15.18% | ||
| GM | 43.82% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CSW is creating some value.
The number of shares outstanding for CSW has been increased compared to 1 year ago.
Compared to 5 years ago, CSW has more shares outstanding
CSW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 7.97 indicates that CSW is not in any danger for bankruptcy at the moment.
CSW has a Altman-Z score of 7.97. This is amongst the best in the industry. CSW outperforms 90.24% of its industry peers.
CSW has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
CSW's Debt to FCF ratio of 0.63 is amongst the best of the industry. CSW outperforms 90.24% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that CSW is not too dependend on debt financing.
The Debt to Equity ratio of CSW (0.09) is better than 82.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 7.97 |
ROIC/WACC0.96
WACC10.37%
2.3 Liquidity
A Current Ratio of 2.86 indicates that CSW has no problem at all paying its short term obligations.
The Current ratio of CSW (2.86) is better than 78.05% of its industry peers.
A Quick Ratio of 1.48 indicates that CSW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.48, CSW is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.32% over the past year.
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 12.27% 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)12.27%
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 12.99% yearly.
CSW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.41% yearly.
EPS Next Y22.98%
EPS Next 2Y17.79%
EPS Next 3Y12.99%
EPS Next 5YN/A
Revenue Next Year18.97%
Revenue Next 2Y13.47%
Revenue Next 3Y10.41%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
The Price/Earnings ratio is 28.92, which means the current valuation is very expensive for CSW.
CSW's Price/Earnings ratio is a bit more expensive when compared to the industry. CSW is more expensive than 68.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of CSW to the average of the S&P500 Index (27.38), we can say CSW is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.78, CSW is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CSW is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CSW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSW is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 19.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 12.99% in the coming years.
PEG (NY)1.26
PEG (5Y)1.35
EPS Next 2Y17.79%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
CSW has a yearly dividend return of 0.42%, which is pretty low.
CSW's Dividend Yield is comparable with the industry average which is at 1.16.
With a Dividend Yield of 0.42, CSW pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
The dividend of CSW is nicely growing with an annual growth rate of 10.61%!
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
CSW pays out 11.41% of its income as dividend. This is a sustainable payout ratio.
CSW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.41%
EPS Next 2Y17.79%
EPS Next 3Y12.99%
256.83
+1.06 (+0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.56%
Inst Owner ChangeN/A
Ins Owners1.29%
Ins Owner Change0.31%
Market Cap4.31B
Analysts70
Price Target295.39 (15.01%)
Short Float %4.05%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.9
Dividend Growth(5Y)10.61%
DP11.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.34%
Min EPS beat(2)-3.43%
Max EPS beat(2)0.76%
EPS beat(4)3
Avg EPS beat(4)2.63%
Min EPS beat(4)-3.43%
Max EPS beat(4)9.83%
EPS beat(8)5
Avg EPS beat(8)-2.59%
EPS beat(12)8
Avg EPS beat(12)2.1%
EPS beat(16)11
Avg EPS beat(16)4.45%
Revenue beat(2)0
Avg Revenue beat(2)-4.04%
Min Revenue beat(2)-6.12%
Max Revenue beat(2)-1.95%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)3.38%
Revenue beat(8)3
Avg Revenue beat(8)-0.62%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-15.22%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.92 | ||
| Fwd PE | 21.78 | ||
| P/S | 4.71 | ||
| P/FCF | 28.71 | ||
| P/OCF | 25.94 | ||
| P/B | 3.89 | ||
| P/tB | 20.74 | ||
| EV/EBITDA | 19.07 |
EPS(TTM)8.88
EY3.46%
EPS(NY)11.79
Fwd EY4.59%
FCF(TTM)8.95
FCFY3.48%
OCF(TTM)9.9
OCFY3.86%
SpS54.51
BVpS66.06
TBVpS12.38
PEG (NY)1.26
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 12.52% | ||
| ROCE | 13.26% | ||
| ROIC | 9.94% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 31.26% | ||
| OM | 19.95% | ||
| PM (TTM) | 15.18% | ||
| GM | 43.82% | ||
| FCFM | 16.41% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.41 | ||
| Cap/Depr | 34.53% | ||
| Cap/Sales | 1.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.58% | ||
| Profit Quality | 108.13% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 7.97 |
F-Score5
WACC10.37%
ROIC/WACC0.96
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 Y22.98%
EPS Next 2Y17.79%
EPS Next 3Y12.99%
EPS Next 5YN/A
Revenue 1Y (TTM)12.27%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%16.57%
Revenue Next Year18.97%
Revenue Next 2Y13.47%
Revenue Next 3Y10.41%
Revenue Next 5YN/A
EBIT growth 1Y8.1%
EBIT growth 3Y23.32%
EBIT growth 5Y22.25%
EBIT Next Year42.3%
EBIT Next 3Y18.72%
EBIT Next 5YN/A
FCF growth 1Y8.9%
FCF growth 3Y41.75%
FCF growth 5Y21.06%
OCF growth 1Y7.32%
OCF growth 3Y34.56%
OCF growth 5Y19.22%