CSW INDUSTRIALS INC (CSW) Stock Fundamental Analysis
USA - NYSE:CSW - US1264021064 - Common Stock
241.96 USD
+0.31 (+0.13%)
241.96 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 expensively, but it does show have an excellent growth rating. With these ratings, CSW could be worth investigating further 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.
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
CSW's Return On Assets of 9.46% is fine compared to the rest of the industry. CSW outperforms 68.29% of its industry peers.
CSW has a Return On Equity (12.71%) which is in line with its industry peers.
The Return On Invested Capital of CSW (10.39%) is better than 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSW is in line with the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 12.71% | ||
| ROIC | 10.39% |
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
With a decent Profit Margin value of 14.88%, CSW is doing good in the industry, outperforming 78.05% of the companies in the same industry.
CSW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.48%, CSW belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
In the last couple of years the Operating Margin of CSW has grown nicely.
Looking at the Gross Margin, with a value of 43.18%, CSW belongs to the top of the industry, outperforming 82.93% 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 | 19.48% | ||
| PM (TTM) | 14.88% | ||
| GM | 43.18% |
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
CSW has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CSW has been increased compared to 1 year ago.
CSW has more shares outstanding than it did 5 years ago.
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
CSW has an Altman-Z score of 8.27. This indicates that CSW is financially healthy and has little risk of bankruptcy at the moment.
CSW has a Altman-Z score of 8.27. This is amongst the best in the industry. CSW outperforms 95.12% of its industry peers.
CSW has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
CSW's Debt to FCF ratio of 0.41 is amongst the best of the industry. CSW outperforms 90.24% of its industry peers.
A Debt/Equity ratio of 0.05 indicates that CSW is not too dependend on debt financing.
The Debt to Equity ratio of CSW (0.05) is better than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 8.27 |
ROIC/WACC1.09
WACC9.51%
2.3 Liquidity
CSW has a Current Ratio of 2.76. This indicates that CSW is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.76, CSW is doing good in the industry, outperforming 73.17% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that CSW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, CSW is in line with its industry, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.16% over the past year.
Measured over the past years, CSW shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.50% on average per year.
The Revenue has grown by 14.87% 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)30.16%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%30.97%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%21.51%
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 13.29% yearly.
CSW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.87% yearly.
EPS Next Y20.97%
EPS Next 2Y16.66%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue Next Year19.54%
Revenue Next 2Y14.02%
Revenue Next 3Y10.87%
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
With a Price/Earnings ratio of 25.26, CSW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CSW is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
CSW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.92, CSW is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSW indicates a slightly more expensive valuation: CSW is more expensive than 60.98% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, CSW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 20.92 |
4.2 Price Multiples
65.85% of the companies in the same industry are cheaper than CSW, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CSW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.52 | ||
| EV/EBITDA | 17.14 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CSW has a very decent profitability rating, which may justify a higher PE ratio.
CSW's earnings are expected to grow with 13.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)1.17
EPS Next 2Y16.66%
EPS Next 3Y13.29%
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 1.35, CSW has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CSW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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
11.93% 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.
DP11.93%
EPS Next 2Y16.66%
EPS Next 3Y13.29%
241.96
+0.31 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners93.12%
Inst Owner ChangeN/A
Ins Owners1.31%
Ins Owner Change1.59%
Market Cap4.06B
Revenue(TTM)964.79M
Net Income(TTM)143.59M
Analysts70
Price Target293.59 (21.34%)
Short Float %4.98%
Short Ratio5.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.9
Dividend Growth(5Y)10.61%
DP11.93%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.44%
Min EPS beat(2)0.76%
Max EPS beat(2)6.13%
EPS beat(4)3
Avg EPS beat(4)3.32%
Min EPS beat(4)-3.43%
Max EPS beat(4)9.83%
EPS beat(8)6
Avg EPS beat(8)-1.41%
EPS beat(12)9
Avg EPS beat(12)3.24%
EPS beat(16)12
Avg EPS beat(16)6.36%
Revenue beat(2)0
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-6.12%
Max Revenue beat(2)-1.52%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-6.12%
Max Revenue beat(4)-0.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.49%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.61%
PT rev (3m)-0.61%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)1.04%
EPS NY rev (1m)-1.56%
EPS NY rev (3m)8.84%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)4.51%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.26 | ||
| Fwd PE | 20.92 | ||
| P/S | 4.21 | ||
| P/FCF | 27.52 | ||
| P/OCF | 25.19 | ||
| P/B | 3.6 | ||
| P/tB | 17.09 | ||
| EV/EBITDA | 17.14 |
EPS(TTM)9.58
EY3.96%
EPS(NY)11.57
Fwd EY4.78%
FCF(TTM)8.79
FCFY3.63%
OCF(TTM)9.6
OCFY3.97%
SpS57.43
BVpS67.26
TBVpS14.16
PEG (NY)1.2
PEG (5Y)1.17
Graham Number120.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.46% | ||
| ROE | 12.71% | ||
| ROCE | 13.86% | ||
| ROIC | 10.39% | ||
| ROICexc | 10.64% | ||
| ROICexgc | 32.6% | ||
| OM | 19.48% | ||
| PM (TTM) | 14.88% | ||
| GM | 43.18% | ||
| FCFM | 15.31% |
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%
ROICexgc growth 3Y17.93%
ROICexgc 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-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.05 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.25 | ||
| Cap/Depr | 26.8% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.55% | ||
| Profit Quality | 102.86% | ||
| Current Ratio | 2.76 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 8.27 |
F-Score6
WACC9.51%
ROIC/WACC1.09
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)30.16%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%30.97%
EPS Next Y20.97%
EPS Next 2Y16.66%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue 1Y (TTM)14.87%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%21.51%
Revenue Next Year19.54%
Revenue Next 2Y14.02%
Revenue Next 3Y10.87%
Revenue Next 5YN/A
EBIT growth 1Y5.13%
EBIT growth 3Y23.32%
EBIT growth 5Y22.25%
EBIT Next Year40.2%
EBIT Next 3Y19.08%
EBIT Next 5YN/A
FCF growth 1Y-2.7%
FCF growth 3Y41.75%
FCF growth 5Y21.06%
OCF growth 1Y-4.58%
OCF growth 3Y34.56%
OCF growth 5Y19.22%
CSW INDUSTRIALS INC / CSW FAQ
What is the ChartMill fundamental rating of CSW INDUSTRIALS INC (CSW) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CSW.
What is the valuation status of CSW INDUSTRIALS INC (CSW) stock?
ChartMill assigns a valuation rating of 3 / 10 to CSW INDUSTRIALS INC (CSW). This can be considered as Overvalued.
How profitable is CSW INDUSTRIALS INC (CSW) stock?
CSW INDUSTRIALS INC (CSW) has a profitability rating of 7 / 10.
What is the valuation of CSW INDUSTRIALS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CSW INDUSTRIALS INC (CSW) is 25.26 and the Price/Book (PB) ratio is 3.6.
Can you provide the expected EPS growth for CSW stock?
The Earnings per Share (EPS) of CSW INDUSTRIALS INC (CSW) is expected to grow by 20.97% in the next year.