CSW Industrials (CSW) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: 0.22%
• Average Volume (3M): 179.93K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.44
• Revenue Growth: 12.27%
• EPS Growth: 19.05%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Machinery
• EPS (TTM): 2.85
• Shares Outstanding: 16,802,467
• 10 Day Avg. Volume: 157,571
• 30 Day Avg. Volume: 179,931
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 12.44
• Enterprise Value/Ebitda: 22.07
• 1Y Price Target: $295.75
• Price Target Upside: 18.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $285.00 ▲(13.98% Upside)

CSW Industrials' overall stock score is driven by its strong financial performance, which is the most significant factor. However, the technical analysis and valuation suggest caution, as the stock shows potential bearish trends and appears overvalued. The positive corporate events provide some support, but the lack of earnings call data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth demonstrates the company's ability to expand its market reach and enhance product adoption, supporting long-term business sustainability.

Acquisition Strategy

Strategic acquisitions like Aspen Manufacturing enhance product offerings and are expected to drive significant revenue growth, strengthening market position.

Financial Stability

Strong cash reserves and operational cash flow indicate financial stability, allowing for reinvestment and resilience against economic fluctuations.

Negative Factors

Segment Revenue Decline

Declining revenue in key segments like Specialized Reliability Solutions could signal challenges in market demand, affecting overall growth potential.

Margin Pressures

Margin pressures from increased expenses may limit profitability, impacting the company's ability to maintain competitive pricing and reinvest in growth.

Revenue Timing Issues

Timing issues in project revenue recognition can lead to volatility in financial results, complicating forecasting and strategic planning.

CSW Industrials Business Overview & Revenue Model

Company Description

CSW Industrials (CSW) is a diversified industrial company that operates primarily in the sectors of industrial products, specialty chemicals, and construction materials. The company focuses on providing a wide range of high-quality products and solutions that cater to various industries, including HVAC, plumbing, electrical, and automotive sectors. CSW's core offerings include sealing and bonding solutions, maintenance, repair, and operations (MRO) products, as well as specialty lubricants and adhesives designed to improve operational efficiency and performance for its customers.

How the Company Makes Money

CSW Industrials generates revenue through multiple key streams, primarily from the sale of its diverse range of industrial products and specialty chemicals. The company benefits from a robust distribution network that allows it to reach a wide customer base across various sectors. Additionally, CSW has established significant partnerships with distributors and retailers, enhancing its market presence and enabling access to different customer segments. The company's revenue model is supported by a focus on innovation and product development, which helps maintain competitive advantages in the marketplace. Moreover, recurring revenues from maintenance and repair contracts contribute to its financial stability, alongside strategically targeted acquisitions that expand its product offerings and market reach.

CSW Industrials Financial Statement Overview

Summary

CSW Industrials exhibits strong financial performance with robust revenue growth, solid profitability, and a healthy balance sheet. The revenue increased by 10.8%, and the company maintains strong profit margins with a gross profit margin of 44.8% and a net profit margin of 15.6%. The balance sheet is stable with low leverage, evidenced by a debt-to-equity ratio of 0.06 and a return on equity of 12.7%. Cash flow generation is efficient, with positive free cash flow metrics supporting reinvestment and shareholder returns.

Income Statement

CSW Industrials demonstrates robust revenue growth with a revenue increase from $792.8M to $878.3M, marking a growth rate of approximately 10.8%. The company maintains strong profitability with a gross profit margin of 44.8% and a net profit margin of 15.6%. Additionally, both EBIT and EBITDA margins are solid at 20.6% and 25.4%, respectively. These figures indicate operational efficiency and strong competitive positioning.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.06, indicative of low leverage and financial stability. The return on equity is impressive at 12.7%, reflecting effective use of shareholders' capital. Furthermore, the equity ratio stands at 77.7%, showcasing a solid capital structure with a majority of assets financed by equity.

Cash Flow

CSW Industrials displays healthy cash flow metrics with a free cash flow growth rate of 2.9%. The operating cash flow to net income ratio of 1.23 indicates effective cash generation from operations. The free cash flow to net income ratio of 1.11 signals efficient conversion of earnings into cash, supporting potential for reinvestment and shareholder returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	915.77M	878.30M	792.84M	757.90M	626.43M	419.20M
Gross Profit	401.33M	393.31M	350.75M	318.21M	255.96M	184.80M
EBITDA	226.27M	223.39M	192.03M	174.73M	133.06M	76.29M
Net Income	138.99M	136.65M	101.65M	96.44M	66.39M	40.10M
Balance Sheet
Total Assets	1.54B	1.38B	1.04B	1.04B	995.36M	874.96M
Cash, Cash Equivalents and Short-Term Investments	37.99M	225.84M	22.16M	18.45M	16.62M	10.09M
Total Debt	95.00M	69.36M	215.37M	253.00M	252.78M	242.34M
Total Liabilities	405.66M	286.63M	408.25M	499.31M	510.95M	462.94M
Stockholders Equity	1.11B	1.07B	615.72M	525.67M	469.09M	412.01M
Cash Flow
Free Cash Flow	150.28M	152.10M	147.76M	107.50M	53.44M	57.42M
Operating Cash Flow	166.35M	168.36M	164.33M	121.45M	69.09M	66.25M
Investing Cash Flow	-425.66M	-102.22M	-45.45M	-72.17M	-51.46M	-289.89M
Financing Cash Flow	278.62M	138.05M	-114.07M	-46.84M	-13.04M	214.05M

CSW Industrials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 250.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSW, the sentiment is Negative. The current price of 250.04 is below the 20-day moving average (MA) of 263.41, below the 50-day MA of 272.29, and below the 200-day MA of 312.39, indicating a bearish trend. The MACD of -4.53 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSW.

CSW Industrials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FELE	73 Outperform	$4.21B	24.47	14.38%	1.10%	2.20%	-3.74%
MWA	72 Outperform	$3.98B	26.91	17.33%	1.07%	10.19%	20.71%
NPO	71 Outperform	$4.68B	55.61	5.78%	0.55%	4.99%	169.24%
KAI	69 Neutral	$3.69B	34.91	12.21%	0.42%	1.74%	-7.64%
MIR	65 Neutral	$5.32B	558.48	0.67%	―	7.88%	―
CSW	64 Neutral	$4.20B	29.89	15.79%	0.22%	12.27%	19.05%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%

CSW Industrials Corporate Events

CSW Industrials Holds Successful Annual Shareholders Meeting

On August 26, 2025, CSW Industrials announced the promotion of Fang Wang to Vice President and Chief Accounting Officer, succeeding James Perry in the role of principal accounting officer. This change is part of the company’s strategic leadership adjustments to strengthen its financial governance. Additionally, on August 28, 2025, CSW Industrials held its Annual Meeting of Shareholders, where all director nominees were elected, executive compensation was approved, and Grant Thornton LLP was ratified as the independent registered public accounting firm for fiscal 2026, reflecting strong shareholder support for the company’s governance and financial strategies.