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 42 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 expensive, but it does show an excellent growth. 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.
In the past year CSWI had a positive cash flow from operations.
CSWI had positive earnings in each of the past 5 years.
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 9.91%, CSWI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.74%, CSWI is in line with its industry, outperforming 52.38% of the companies in the same industry.
CSWI has a Return On Invested Capital (11.12%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSWI is in line with the industry average of 12.71%.
| 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's Profit Margin of 15.56% is amongst the best of the industry. CSWI outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of CSWI has grown nicely.
With an excellent Operating Margin value of 20.80%, CSWI belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CSWI is destroying value.
Compared to 1 year ago, CSWI has more shares outstanding
CSWI has more shares outstanding than it did 5 years ago.
CSWI 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
CSWI has an Altman-Z score of 12.21. This indicates that CSWI is financially healthy and has little risk of 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.
Looking at the Current ratio, with a value of 4.03, CSWI belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
A Quick Ratio of 2.70 indicates that CSWI has no problem at all paying its short term obligations.
CSWI has a better Quick ratio (2.70) than 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.03 | ||
| Quick Ratio | 2.7 |
3. Growth
3.1 Past
CSWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.17%, which is quite impressive.
Measured over the past years, CSWI shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.50% on average per year.
CSWI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.77%.
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.
CSWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.35% yearly.
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
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.
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
CSWI is valuated quite expensively with a Price/Earnings ratio of 35.89.
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 26.31, CSWI is valued a bit more expensive.
CSWI is valuated quite expensively with a Price/Forward Earnings ratio of 31.50.
CSWI's Price/Forward Earnings 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.
When comparing the Price/Forward Earnings ratio of CSWI to the average of the S&P500 Index (22.13), we can say CSWI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.89 | ||
| Fwd PE | 31.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSWI indicates a slightly more expensive valuation: CSWI is more expensive than 73.81% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CSWI is on the same level as its industry peers.
| 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 an expensive valuation of the company.
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 1.20, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of CSWI is nicely growing with an annual growth rate of 10.61%!
CSWI has been paying a dividend for over 5 years, so it has already some track record.
CSWI has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)10.61%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
10.67% of the earnings are spent on dividend by CSWI. This is a low number and sustainable payout ratio.
The dividend of CSWI is growing, but earnings are growing more, so the dividend growth is 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 Change2.98%
Ins Owners1.32%
Ins Owner Change1.29%
Market Cap5.13B
Analysts74.55
Price Target348.43 (14.2%)
Short Float %3.2%
Short Ratio4.45
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%