CSW INDUSTRIALS INC (CSWI)
US1264021064 - Common Stock
CSWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 industry peers in the Building Products industry. CSWI gets an excellent profitability rating and is at the same time showing great financial health properties. CSWI is quite expensive at the moment. It does show a decent growth rate. This makes CSWI very considerable for 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.
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 Return On Assets value of 9.77%, CSWI perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
With a decent Return On Equity value of 16.47%, CSWI is doing good in the industry, outperforming 60.47% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.25%, CSWI is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSWI is significantly below the industry average of 13.67%.
The 3 year average ROIC (8.66%) for CSWI is below the current ROIC(13.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 16.47% | ||
| ROIC | 13.25% |
ROA(3y)6.82%
ROA(5y)9.16%
ROE(3y)14.05%
ROE(5y)15.19%
ROIC(3y)8.66%
ROIC(5y)11.47%
1.3 Margins
With a decent Profit Margin value of 12.47%, CSWI is doing good in the industry, outperforming 76.74% of the companies in the same industry.
CSWI's Profit Margin has improved in the last couple of years.
CSWI has a better Operating Margin (19.87%) than 83.72% of its industry peers.
In the last couple of years the Operating Margin of CSWI has grown nicely.
CSWI's Gross Margin of 44.03% is amongst the best of the industry. CSWI outperforms 93.02% of its industry peers.
CSWI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.87% | ||
| PM (TTM) | 12.47% | ||
| GM | 44.03% |
OM growth 3Y1.92%
OM growth 5Y3.79%
PM growth 3Y2.41%
PM growth 5YN/A
GM growth 3Y-2.87%
GM growth 5Y-1.53%
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 less shares outstanding
Compared to 5 years ago, CSWI has less shares outstanding
Compared to 1 year ago, CSWI has an improved debt to assets ratio.
2.2 Solvency
CSWI has an Altman-Z score of 7.92. This indicates that CSWI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.92, CSWI belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
The Debt to FCF ratio of CSWI is 0.94, which is an excellent value as it means it would take CSWI, only 0.94 years of fcf income to pay off all of its debts.
CSWI has a Debt to FCF ratio of 0.94. This is in the better half of the industry: CSWI outperforms 76.74% of its industry peers.
A Debt/Equity ratio of 0.26 indicates that CSWI is not too dependend on debt financing.
CSWI has a Debt to Equity ratio of 0.26. This is in the better half of the industry: CSWI outperforms 62.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 7.92 |
ROIC/WACC1.19
WACC11.18%
2.3 Liquidity
CSWI has a Current Ratio of 2.77. This indicates that CSWI is financially healthy and has no problem in meeting its short term obligations.
CSWI has a better Current ratio (2.77) than 69.77% of its industry peers.
CSWI has a Quick Ratio of 1.40. This is a normal value and indicates that CSWI is financially healthy and should not expect problems in meeting its short term obligations.
CSWI's Quick ratio of 1.40 is in line compared to the rest of the industry. CSWI outperforms 55.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
CSWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.66%, which is quite good.
CSWI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.02% yearly.
CSWI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
The Revenue has been growing by 18.37% on average over the past years. This is quite good.
EPS 1Y (TTM)10.66%
EPS 3Y24.54%
EPS 5Y25.02%
EPS growth Q2Q-41.58%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y25.23%
Revenue growth 5Y18.37%
Revenue growth Q2Q2.26%
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 12.98% yearly.
Based on estimates for the next years, CSWI will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y8.25%
EPS Next 2Y13.93%
EPS Next 3Y12.98%
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y5.27%
Revenue Next 3Y5.13%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.98, which means the current valuation is very expensive for CSWI.
CSWI's Price/Earnings ratio is a bit more expensive when compared to the industry. CSWI is more expensive than 79.07% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.28, CSWI is valued a bit more expensive.
The Price/Forward Earnings ratio is 30.17, which means the current valuation is very expensive for CSWI.
Based on the Price/Forward Earnings ratio, CSWI is valued a bit more expensive than 69.77% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, CSWI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 30.17 |
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 67.44% of the companies listed in the same industry.
60.47% of the companies in the same industry are cheaper than CSWI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.29 | ||
| EV/EBITDA | 20.37 |
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 12.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.72
PEG (5Y)1.56
EPS Next 2Y13.93%
EPS Next 3Y12.98%
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.
Compared to an average S&P500 Dividend Yield of 2.41, CSWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
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 last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
11.91% of the earnings are spent on dividend by CSWI. This is a low number and sustainable payout ratio.
DP11.91%
EPS Next 2Y13.93%
EPS Next 3Y12.98%
CSW INDUSTRIALS INC
NASDAQ:CSWI (5/3/2024, 7:00:01 PM)
After market: 242.84 0 (0%)242.84
+0.97 (+0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 30.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.72
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.77% | ||
| ROE | 16.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.87% | ||
| PM (TTM) | 12.47% | ||
| GM | 44.03% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.66%
EPS 3Y24.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.75%
Revenue growth 3Y25.23%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y