CSW INDUSTRIALS INC (CSWI) Stock Fundamental Analysis
NASDAQ:CSWI - Nasdaq - US1264021064 - Common Stock - Currency: USD
CSWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 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 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
CSWI had positive earnings in the past year.
CSWI had a positive operating cash flow in the past year.
In the past 5 years CSWI has always been profitable.
CSWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 9.88%, CSWI is doing good in the industry, outperforming 60.98% of the companies in the same industry.
With a Return On Equity value of 12.77%, CSWI 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 11.20%, CSWI is in line with its industry, outperforming 53.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSWI is below the industry average of 13.22%.
The last Return On Invested Capital (11.20%) for CSWI is above the 3 year average (10.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 12.77% | ||
| ROIC | 11.2% |
ROA(3y)8.55%
ROA(5y)8.52%
ROE(3y)16.33%
ROE(5y)15.03%
ROIC(3y)10.84%
ROIC(5y)11.02%
1.3 Margins
CSWI has a Profit Margin of 15.53%. This is amongst the best in the industry. CSWI outperforms 82.93% of its industry peers.
CSWI's Profit Margin has been stable in the last couple of years.
CSWI has a Operating Margin of 21.03%. This is amongst the best in the industry. CSWI outperforms 87.80% of its industry peers.
CSWI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.85%, CSWI belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
In the last couple of years the Gross Margin of CSWI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.03% | ||
| PM (TTM) | 15.53% | ||
| GM | 44.85% |
OM growth 3Y7.88%
OM growth 5Y3.08%
PM growth 3Y10.25%
PM growth 5Y-0.31%
GM growth 3Y0.15%
GM growth 5Y-0.82%
2. Health
2.1 Basic Checks
CSWI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CSWI has about the same amount of shares outstanding.
Compared to 5 years ago, CSWI has more shares outstanding
CSWI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.55 indicates that CSWI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.55, CSWI belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
CSWI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 12.55 |
ROIC/WACC1.1
WACC10.21%
2.3 Liquidity
CSWI has a Current Ratio of 4.18. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI's Current ratio of 4.18 is amongst the best of the industry. CSWI outperforms 87.80% of its industry peers.
CSWI has a Quick Ratio of 2.68. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.68, CSWI belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.18 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
CSWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.35%, which is quite impressive.
The Earnings Per Share has been growing by 18.80% on average over the past years. This is quite good.
The Revenue has grown by 10.39% in the past year. This is quite good.
The Revenue has been growing by 17.75% on average over the past years. This is quite good.
EPS 1Y (TTM)34.35%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%171.19%
Revenue 1Y (TTM)10.39%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%10.68%
3.2 Future
The Earnings Per Share is expected to grow by 18.10% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.07% on average over the next years. This is quite good.
EPS Next Y31.89%
EPS Next 2Y21.79%
EPS Next 3Y18.1%
EPS Next 5YN/A
Revenue Next Year12.04%
Revenue Next 2Y11.75%
Revenue Next 3Y10.07%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 37.33, CSWI can be considered very expensive at the moment.
78.05% of the companies in the same industry are cheaper than CSWI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.88, CSWI is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.26, CSWI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSWI indicates a slightly more expensive valuation: CSWI is more expensive than 75.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, CSWI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.33 | ||
| Fwd PE | 32.26 |
4.2 Price Multiples
80.49% of the companies in the same industry are cheaper than CSWI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CSWI is valued a bit more expensive than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.71 | ||
| EV/EBITDA | 22.91 |
4.3 Compensation for Growth
CSWI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CSWI has a very decent profitability rating, which may justify a higher PE ratio.
CSWI's earnings are expected to grow with 18.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)1.99
EPS Next 2Y21.79%
EPS Next 3Y18.1%
5. Dividend
5.1 Amount
CSWI has a yearly dividend return of 0.34%, which is pretty low.
CSWI's Dividend Yield is comparable with the industry average which is at 1.25.
Compared to an average S&P500 Dividend Yield of 2.45, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
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)N/A
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
CSWI pays out 10.13% of its income as dividend. This is a sustainable payout ratio.
DP10.13%
EPS Next 2Y21.79%
EPS Next 3Y18.1%
312.48
-3.45 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners92.54%
Inst Owner Change0.14%
Ins Owners1.24%
Ins Owner Change2.18%
Market Cap5.24B
Analysts75
Price Target344.76 (10.33%)
Short Float %3.72%
Short Ratio4.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend0.76
Dividend Growth(5Y)N/A
DP10.13%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.55%
Min EPS beat(2)2.34%
Max EPS beat(2)8.75%
EPS beat(4)4
Avg EPS beat(4)7.76%
Min EPS beat(4)2.34%
Max EPS beat(4)11.25%
EPS beat(8)6
Avg EPS beat(8)-0.62%
EPS beat(12)9
Avg EPS beat(12)5.03%
EPS beat(16)11
Avg EPS beat(16)1.9%
Revenue beat(2)1
Avg Revenue beat(2)0.62%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)2.36%
Revenue beat(4)3
Avg Revenue beat(4)1.42%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)3.07%
Revenue beat(8)4
Avg Revenue beat(8)-0.74%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)11
Avg Revenue beat(16)2.98%
PT rev (1m)-9.71%
PT rev (3m)-18.31%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)1.59%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.33 | ||
| Fwd PE | 32.26 | ||
| P/S | 6.11 | ||
| P/FCF | 35.71 | ||
| P/OCF | 32.07 | ||
| P/B | 5.02 | ||
| P/tB | 12.43 | ||
| EV/EBITDA | 22.91 |
EPS(TTM)8.37
EY2.68%
EPS(NY)9.69
Fwd EY3.1%
FCF(TTM)8.75
FCFY2.8%
OCF(TTM)9.74
OCFY3.12%
SpS51.17
BVpS62.22
TBVpS25.14
PEG (NY)1.17
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.88% | ||
| ROE | 12.77% | ||
| ROCE | 14.85% | ||
| ROIC | 11.2% | ||
| ROICexc | 13.59% | ||
| ROICexgc | 35.86% | ||
| OM | 21.03% | ||
| PM (TTM) | 15.53% | ||
| GM | 44.85% | ||
| FCFM | 17.1% |
ROA(3y)8.55%
ROA(5y)8.52%
ROE(3y)16.33%
ROE(5y)15.03%
ROIC(3y)10.84%
ROIC(5y)11.02%
ROICexc(3y)11.07%
ROICexc(5y)11.38%
ROICexgc(3y)28.91%
ROICexgc(5y)27.45%
ROCE(3y)14.37%
ROCE(5y)14.62%
ROICexcg growth 3Y25.85%
ROICexcg growth 5Y1.67%
ROICexc growth 3Y27.32%
ROICexc growth 5Y-4.24%
OM growth 3Y7.88%
OM growth 5Y3.08%
PM growth 3Y10.25%
PM growth 5Y-0.31%
GM growth 3Y0.15%
GM growth 5Y-0.82%
F-Score7
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 40.11% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.63% | ||
| Profit Quality | 110.12% | ||
| Current Ratio | 4.18 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z | 12.55 |
F-Score7
WACC10.21%
ROIC/WACC1.1
Cap/Depr(3y)42%
Cap/Depr(5y)48.26%
Cap/Sales(3y)2.15%
Cap/Sales(5y)2.3%
Profit Quality(3y)112.43%
Profit Quality(5y)121.74%
High Growth Momentum
Growth
EPS 1Y (TTM)34.35%
EPS 3Y34.56%
EPS 5Y18.8%
EPS Q2Q%171.19%
EPS Next Y31.89%
EPS Next 2Y21.79%
EPS Next 3Y18.1%
EPS Next 5YN/A
Revenue 1Y (TTM)10.39%
Revenue growth 3Y23.67%
Revenue growth 5Y17.75%
Sales Q2Q%10.68%
Revenue Next Year12.04%
Revenue Next 2Y11.75%
Revenue Next 3Y10.07%
Revenue Next 5YN/A
EBIT growth 1Y16.79%
EBIT growth 3Y33.42%
EBIT growth 5Y21.38%
EBIT Next Year45.41%
EBIT Next 3Y20.43%
EBIT Next 5YN/A
FCF growth 1Y115.63%
FCF growth 3Y36.97%
FCF growth 5Y23.13%
OCF growth 1Y95.33%
OCF growth 3Y35.33%
OCF growth 5Y22.45%