NasdaqGS:CSWI

Stock Analysis Report

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Executive Summary

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. More Details

Rewards

Earnings are forecast to grow 24.18% per year

Earnings have grown 17.7% per year over the past 5 years

Risk Analysis

No risks detected for CSWI from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has CSW Industrials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSWI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CSWI's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.8%

CSWI

-1.0%

US Building

1.3%

US Market


1 Year Return

46.7%

CSWI

16.8%

US Building

21.0%

US Market

Return vs Industry: CSWI exceeded the US Building industry which returned 15.7% over the past year.

Return vs Market: CSWI exceeded the US Market which returned 20.9% over the past year.


Shareholder returns

CSWIIndustryMarket
7 Day-2.8%-1.0%1.3%
30 Day25.4%10.5%12.1%
90 Day45.5%10.1%4.8%
1 Year47.8%46.7%24.7%16.8%23.7%21.0%
3 Year128.7%125.6%41.0%29.7%46.6%36.8%
5 Year191.7%187.9%96.1%68.2%94.6%73.2%

Long-Term Price Volatility Vs. Market

How volatile is CSW Industrials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CSW Industrials undervalued compared to its fair value and its price relative to the market?

32.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSWI ($107.29) is trading above our estimate of fair value ($76.93)

Significantly Below Fair Value: CSWI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSWI is poor value based on its PE Ratio (32.7x) compared to the US Building industry average (24.1x).

PE vs Market: CSWI is poor value based on its PE Ratio (32.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: CSWI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CSWI is overvalued based on its PB Ratio (5.2x) compared to the US Building industry average (2.8x).


Next Steps

Future Growth

How is CSW Industrials forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSWI's forecast earnings growth (24.2% per year) is above the savings rate (2.2%).

Earnings vs Market: CSWI's earnings (24.2% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CSWI's revenue (16.4% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: CSWI's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CSWI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CSW Industrials performed over the past 5 years?

17.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSWI has high quality earnings.

Growing Profit Margin: CSWI's current net profit margins (12.9%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: CSWI's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: CSWI's earnings growth over the past year (11.8%) is below its 5-year average (17.7% per year).

Earnings vs Industry: CSWI earnings growth over the past year (11.8%) underperformed the Building industry 11.8%.


Return on Equity

High ROE: CSWI's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is CSW Industrials's financial position?


Financial Position Analysis

Short Term Liabilities: CSWI's short term assets ($174.9M) exceed its short term liabilities ($57.4M).

Long Term Liabilities: CSWI's short term assets ($174.9M) exceed its long term liabilities ($32.2M).


Debt to Equity History and Analysis

Debt Level: CSWI's debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: CSWI's debt to equity ratio has reduced from 37.9% to 4.1% over the past 5 years.

Debt Coverage: CSWI's debt is well covered by operating cash flow (627.1%).

Interest Coverage: CSWI's interest payments on its debt are well covered by EBIT (58.2x coverage).


Balance Sheet


Next Steps

Dividend

What is CSW Industrials's current dividend yield, its reliability and sustainability?

0.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CSWI's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CSWI's dividend (0.5%) is low compared to the top 25% of dividend payers in the US market (4.08%).


Stability and Growth of Payments

Stable Dividend: CSWI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CSWI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CSWI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSWI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Joe Armes (58 yo)

5.17yrs

Tenure

US$3,818,476

Compensation

Mr. Joseph Brooks Armes, also known as Joe, J.D., has been the Chairman and Chief Executive Officer of CSW Industrials, Inc. since September 2015 and has been its President since February 28, 2018. Mr. Arm...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD3.82M) is about average for companies of similar size in the US market ($USD4.18M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Armes
Chairman5.17yrsUS$3.82m0.38%
$ 6.1m
Luke Alverson
Senior VP4.75yrsUS$955.38k0.10%
$ 1.6m
Donal Sullivan
Executive VP & GM of Industrial Product Segment4.83yrsUS$1.25m0.14%
$ 2.2m
Craig Foster
Senior VP & GM of Specialty Chemicals4.83yrsUS$1.04m0.088%
$ 1.4m
James Perry
Executive VP & CFO0.42yrno data0.063%
$ 996.8k
Adrianne Griffin
VP of Investor Relations & Treasurer1.25yrsno datano data

4.8yrs

Average Tenure

54yo

Average Age

Experienced Management: CSWI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Armes
Chairman5.17yrsUS$3.82m0.38%
$ 6.1m
Jay Sweezey
Independent Director3.92yrsUS$173.06k0.049%
$ 773.7k
William Quinn
Independent Director5.17yrsUS$192.43k0.13%
$ 2.0m
Robert Swartz
Lead Independent Directorno dataUS$208.81k0.077%
$ 1.2m
Michael Gambrell
Independent Director5.17yrsUS$171.06k0.12%
$ 1.9m
Linda Livingstone
Independent Director5.17yrsUS$175.06k0.070%
$ 1.1m
Terry Johnston
Independent Director3.83yrsUS$175.06k0.047%
$ 748.6k
Debra Von Storch
Independent Director0.83yrUS$84.81k0.026%
$ 420.6k

5.2yrs

Average Tenure

64yo

Average Age

Experienced Board: CSWI's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CSW Industrials, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CSW Industrials, Inc.
  • Ticker: CSWI
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: US$1.588b
  • Shares outstanding: 14.80m
  • Website: https://www.cswindustrials.com

Number of Employees


Location

  • CSW Industrials, Inc.
  • 5420 Lyndon B. Johnson Freeway
  • Suite 500
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSWINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2015
UCIDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2015

Biography

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through two segments, Industrial Products and Specialty Chemicals. The Industrial Pr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 00:16
End of Day Share Price2020/11/30 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.