CSW INDUSTRIALS INC (CSWI) Stock Fundamental Analysis
USA - NASDAQ:CSWI - US1264021064 - Common Stock
305.1 USD
+0.43 (+0.14%)
305.1 USD
0 (0%)
Taking everything into account, CSWI scores 6 out of 10 in our fundamental rating. CSWI was compared to 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making CSWI a very profitable company, without any liquidiy or solvency issues. CSWI is valued quite expensively, but it does show have an excellent growth rating. These ratings could make CSWI a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year CSWI was profitable.
CSWI had a positive operating cash flow in the past year.
In the past 5 years CSWI has always been profitable.
In the past 5 years CSWI always reported a positive cash flow from operatings.
1.2 Ratios
CSWI's Return On Assets of 9.91% is fine compared to the rest of the industry. CSWI outperforms 66.67% of its industry peers.
CSWI has a Return On Equity (12.74%) which is comparable to the rest of the industry.
CSWI has a Return On Invested Capital (11.12%) which is in line with its industry peers.
CSWI had an Average Return On Invested Capital over the past 3 years of 11.71%. This is in line with the industry average of 12.74%.
| 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
CSWI has a better Profit Margin (15.56%) than 85.71% of its industry peers.
CSWI's Profit Margin has improved in the last couple of years.
CSWI has a better Operating Margin (20.80%) than 88.10% of its industry peers.
In the last couple of years the Operating Margin of CSWI has grown nicely.
CSWI has a Gross Margin of 44.78%. This is amongst the best in the industry. CSWI outperforms 90.48% of its industry peers.
CSWI's Gross Margin has been stable in the last couple of years.
| 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 below the Cost of Capital (WACC), so CSWI is destroying value.
The number of shares outstanding for CSWI has been increased compared to 1 year ago.
The number of shares outstanding for CSWI has been increased compared to 5 years ago.
There is no outstanding debt for CSWI. 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 12.21 indicates that CSWI is not in any danger for bankruptcy at the moment.
CSWI's Altman-Z score of 12.21 is amongst the best of the industry. CSWI outperforms 100.00% of its industry peers.
There is no outstanding debt for CSWI. 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 | 12.21 |
ROIC/WACC0.7
WACC15.82%
2.3 Liquidity
CSWI has a Current Ratio of 4.03. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI's Current ratio of 4.03 is amongst the best of the industry. CSWI outperforms 88.10% of its industry peers.
A Quick Ratio of 2.70 indicates that CSWI has no problem at all paying its short term obligations.
CSWI has a Quick ratio of 2.70. This is amongst the best in the industry. CSWI outperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.17% over the past year.
CSWI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.50% yearly.
The Revenue has grown by 10.77% in the past year. This is quite good.
Measured over the past years, CSWI shows a quite strong growth in Revenue. The Revenue has been growing by 17.88% on average per year.
EPS 1Y (TTM)30.17%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%6.37%
Revenue 1Y (TTM)10.77%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%9.34%
3.2 Future
CSWI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.60% yearly.
Based on estimates for the next years, CSWI will show a quite strong growth in Revenue. The Revenue will grow by 11.35% on average per year.
EPS Next Y13.94%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue Next Year21.15%
Revenue Next 2Y13.99%
Revenue Next 3Y11.35%
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
The Price/Earnings ratio is 35.89, which means the current valuation is very expensive for CSWI.
Based on the Price/Earnings ratio, CSWI is valued a bit more expensive than 73.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.76, CSWI is valued a bit more expensive.
A Price/Forward Earnings ratio of 31.50 indicates a quite expensive valuation of CSWI.
Based on the Price/Forward Earnings ratio, CSWI is valued a bit more expensive than the industry average as 73.81% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, CSWI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.5 |
4.2 Price Multiples
CSWI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CSWI is more expensive than 73.81% of the companies in the same industry.
CSWI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.72 | ||
| EV/EBITDA | 21.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CSWI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CSWI may justify a higher PE ratio.
CSWI's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.57
PEG (5Y)1.67
EPS Next 2Y12.49%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
CSWI has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, CSWI has a dividend in line with its industry peers.
With a Dividend Yield of 0.35, CSWI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
On average, the dividend of CSWI grows each year by 10.61%, which is quite nice.
CSWI has been paying a dividend for over 5 years, so it has already some track record.
As CSWI did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)10.61%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
CSWI pays out 10.67% of its income as dividend. This is a sustainable payout ratio.
CSWI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.67%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
305.1
+0.43 (+0.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.73%
Inst Owner Change-0.01%
Ins Owners1.32%
Ins Owner Change-9.24%
Market Cap5.13B
Analysts74.55
Price Target348.43 (14.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.9
Dividend Growth(5Y)10.61%
DP10.67%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.19%
Min EPS beat(2)-4.38%
Max EPS beat(2)8.75%
EPS beat(4)3
Avg EPS beat(4)4.49%
Min EPS beat(4)-4.38%
Max EPS beat(4)11.25%
EPS beat(8)5
Avg EPS beat(8)-3.47%
EPS beat(12)8
Avg EPS beat(12)3.76%
EPS beat(16)11
Avg EPS beat(16)4.05%
Revenue beat(2)0
Avg Revenue beat(2)-2.02%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.12%
Revenue beat(4)2
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-2.91%
Max Revenue beat(4)3.07%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)6
Avg Revenue beat(12)-0.36%
Revenue beat(16)10
Avg Revenue beat(16)1.98%
PT rev (1m)1.07%
PT rev (3m)-8.74%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-0.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)10.91%
Revenue NQ rev (3m)11.24%
Revenue NY rev (1m)8.69%
Revenue NY rev (3m)11.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.5 | ||
| P/S | 5.84 | ||
| P/FCF | 33.72 | ||
| P/OCF | 30.46 | ||
| P/B | 4.78 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 21.73 |
EPS(TTM)8.5
EY2.79%
EPS(NY)9.69
Fwd EY3.17%
FCF(TTM)9.05
FCFY2.97%
OCF(TTM)10.02
OCFY3.28%
SpS52.25
BVpS63.79
TBVpS26.78
PEG (NY)2.57
PEG (5Y)1.67
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 | 12.21 |
F-Score7
WACC15.82%
ROIC/WACC0.7
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)30.17%
EPS 3Y25.6%
EPS 5Y21.5%
EPS Q2Q%6.37%
EPS Next Y13.94%
EPS Next 2Y12.49%
EPS Next 3Y13.6%
EPS Next 5YN/A
Revenue 1Y (TTM)10.77%
Revenue growth 3Y11.93%
Revenue growth 5Y17.88%
Sales Q2Q%9.34%
Revenue Next Year21.15%
Revenue Next 2Y13.99%
Revenue Next 3Y11.35%
Revenue Next 5YN/A
EBIT growth 1Y14.79%
EBIT growth 3Y23.32%
EBIT growth 5Y22.25%
EBIT Next Year43.64%
EBIT Next 3Y20.47%
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%