CSW Industrials, Inc. (CSW) stock analysis

P/E above its 5-year median

CSW Industrials's P/E of 36.6 is above its own 5-year median of 34.5.

P/E above the industry

CSW Industrials's P/E of 36.6 is above the Chemicals and Allied Products median of 25.2.

EV/EBITDA above its 5-year median

CSW Industrials's EV/EBITDA of 25.3 is above its 5-year median of 24.6.

P/S above the industry

CSW Industrials's price-to-sales of 3.70 is above the Chemicals and Allied Products median of 2.35 (book value is negative, so we use sales).

Trading above fair value

The share price of $284.54 is above our fair value estimate of $211.07.

Margin of safety under 20%

The price is 34.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 12.6% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 2.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -11.2% over the last twelve months, against a 5-year average of 22.8% a year.

Growing faster than the industry

Revenue grew 30.0% over the last twelve months; the Chemicals and Allied Products median is 11.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 42.1% over the last twelve months, against 43.2% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 22.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 10.2% over the last twelve months, against a 5-year average of 12.4%.

Net margin above the industry

CSW Industrials's net margin of 10.2% is above the Chemicals and Allied Products median of 5.6%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 25.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.35 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.89; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CSW Industrials paid dividends worth 0.3% of the share price over the last twelve months.

Yield below Treasuries

The 0.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; CSW Industrials yields 0.3%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 14.7% of net income.

Covered by free cash flow

Dividends take 10.6% of free cash flow.