CSW Industrials (CSW) AI Stock Analysis

• Market Cap: $4.58B
• Dividend Yield: 0.2%
• Average Volume (3M): 174.33K
• Price to Earnings (P/E): 32.6
• Beta (1Y): 1.45
• Revenue Growth: 12.27%
• EPS Growth: 19.05%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 2.85
• Shares Outstanding: 16,802,467
• 10 Day Avg. Volume: 188,473
• 30 Day Avg. Volume: 174,326
• 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: 1.09
• Enterprise Value/Revenue: 5.45
• Enterprise Value/Gross Profit: 12.44
• Enterprise Value/Ebitda: 22.07
• 1Y Price Target: $299.33
• Price Target Upside: 12.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $295.00 ▲(10.70% Upside)

CSW Industrials' strong financial performance and positive earnings call sentiment are the most significant factors contributing to the overall score. However, the technical analysis indicates a bearish trend, and the high P/E ratio suggests potential overvaluation, which tempers the overall score.

Positive Factors

Acquisition and Growth Potential

Management noted a 'good path to accretion in the near term' for the recent Aspen acquisition, which is seen as a constructive signal for future profitability.

Industry Positioning

CSWI remains a quality operator with a track record of scaling niche platforms and allocating capital with discipline.

Negative Factors

Cost Pressures

Increased uncertainty around tariff-related cost pressures and near-term margin dilution from the Aspen acquisition tempered the overall beat.

Valuation Concerns

The stock is up 98% YTD and trading at 26.5x forward EBITDA forecast, indicating much of this growth is already reflected in the valuation.

CSW Industrials Business Overview & Revenue Model

Company Description

CSW Industrials, Inc. is a diversified industrial growth company operating in the United States and internationally. The company operates through three main segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. Its product portfolio includes cements, diffusers, grilles, registers, solvents, thread sealants, traps, vents, architectural railings, fire and smoke protection solutions, and industrial lubricants and sealants. CSW serves end markets such as HVAC/R, plumbing, general industrial, architectural building products, energy, mining, and rail. The company has a global presence with operations spanning 26 locations across five countries. Founded in 2014 and headquartered in Dallas, Texas, CSW Industrials focuses on providing niche, value-added products known for performance and reliability.

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: Neutral
• Last Price: 266.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSW, the sentiment is Neutral. The current price of 266.48 is above the 20-day moving average (MA) of 263.02, below the 50-day MA of 278.38, and below the 200-day MA of 321.89, indicating a neutral trend. The MACD of -4.01 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 32.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CSW.

CSW Industrials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SPXC	78 Outperform	$8.83B	42.23	15.02%	―	8.90%	29.18%
MWA	75 Outperform	$4.20B	28.75	17.33%	1.00%	10.19%	20.71%
GTES	74 Outperform	$6.50B	32.43	6.31%	―	-2.67%	-17.55%
FLS	74 Outperform	$7.00B	24.28	13.91%	1.58%	3.15%	14.18%
CSW	72 Outperform	$4.58B	32.59	15.79%	0.20%	12.27%	19.05%
KAI	69 Neutral	$4.01B	37.96	12.21%	0.39%	1.74%	-7.64%
Sector *	64 Neutral	$10.82B	16.31	8.85%	2.03%	2.58%	-16.43%

CSW Industrials Corporate Events

CSW Industrials Completes Merger with Aspen Manufacturing

On May 1, 2025, CSW Industrials‘ subsidiary, RectorSeal, completed a merger with Aspen Manufacturing, making Aspen a wholly owned subsidiary. The merger, valued at $313.5 million, aims to enhance CSW Industrials’ market position. Additionally, the company announced its decision to transfer its stock listing from Nasdaq to the New York Stock Exchange, effective June 9, 2025, to gain increased liquidity and visibility for its shareholders.

Spark’s Take on CSWI Stock

According to Spark, TipRanks’ AI Analyst, CSWI is a Outperform.

CSW Industrials has a strong financial foundation with robust revenue growth and a debt-free balance sheet, which are significant strengths. The recent earnings call provided an optimistic outlook with record revenues and strategic acquisitions, although some challenges remain in profitability margins and cash flow. Technical analysis suggests a cautious approach due to neutral momentum indicators, and the valuation signals the stock may be overvalued relative to industry averages. These factors collectively result in a balanced overall score.

To see Spark’s full report on CSWI stock, click here.

CSW Industrials Expands with Aspen Manufacturing Acquisition

On March 17, 2025, CSW Industrials, through its subsidiary RectorSeal, entered into a definitive agreement to acquire Aspen Manufacturing for $313.5 million. This acquisition is expected to expand CSWI’s HVAC/R product portfolio and enhance its market position by adding Aspen’s evaporative coils and air handler offerings. The transaction aligns with CSWI’s strategic expansion goals and is anticipated to be immediately accretive to its earnings per share and EBITDA, while maintaining a strong balance sheet.