CSW Industrials (CSW) AI Stock Analysis

• Market Cap: $5.08B
• Dividend Yield: 0.27%
• Average Volume (3M): 173.84K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 1.65
• Revenue Growth: 14.87%
• EPS Growth: 15.63%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.96
• Shares Outstanding: 16,686,708
• 10 Day Avg. Volume: 169,175
• 30 Day Avg. Volume: 173,844
• PEG Ratio: 1.21
• Price to Book (P/B): 4.42
• Price to Sales (P/S): 5.39
• P/FCF Ratio: 31.13
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: $304.25
• Price Target Upside: 2.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 10.32
• Revenue Forecast (FY): $1.07B

• Rating: 76 Outperform
• Price Target: $334.00 ▲(12.88% Upside)

CSW Industrials presents a strong financial position with consistent revenue growth and strategic acquisitions, positioning it well for future growth. However, the stock is relatively expensive, and there are challenges with organic revenue and margin contractions. The technical indicators show bullish momentum, but caution is advised due to overbought conditions.

Positive Factors

Revenue Growth

The significant revenue growth, primarily from strategic acquisitions, indicates CSW's ability to expand its market reach and enhance its competitive position.

Strategic Acquisitions

The acquisition of MARS Parts strengthens CSW's product offerings and market position, supporting long-term growth and competitive advantage in the HVAC/R sector.

Balance Sheet Health

A strong balance sheet with low leverage provides CSW with financial flexibility to pursue growth opportunities and withstand economic fluctuations.

Negative Factors

Organic Revenue Decline

The decline in organic revenue suggests challenges in maintaining growth without acquisitions, potentially impacting long-term revenue sustainability.

Margin Contraction

Margin contraction across business segments may pressure profitability, affecting CSW's ability to sustain earnings growth over time.

Challenges in Engineered Building Solutions

Revenue and EBITDA declines in the Engineered Building Solutions segment indicate potential structural challenges that could hinder future performance.

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 by selling its diverse range of industrial and specialty chemical products to a variety of end markets. The company benefits from a strong distribution network and has established partnerships with major distributors and retailers, which facilitates broad market access and enhances sales. Additionally, CSW engages in direct sales to industrial clients, which contributes significantly to its revenue. The company also focuses on innovation and product development, allowing it to expand its product offerings and capture new market opportunities, thereby driving growth and profitability.

CSW Industrials Financial Statement Overview

Summary

CSW Industrials demonstrates strong revenue growth and profitability with a solid net profit margin and efficient operations. The balance sheet is healthy with low leverage, but there are slight weaknesses in cash flow metrics, such as a decline in free cash flow growth.

Income Statement

CSW Industrials demonstrates strong revenue growth with a TTM increase of 5.35% and consistent profitability, reflected in a solid net profit margin of 14.88%. The EBIT and EBITDA margins are robust at 19.28% and 24.40% respectively, indicating efficient operations. However, there is a slight decline in gross profit margin from the previous annual report, which could be a point of concern if the trend continues.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.12, suggesting prudent financial management. The return on equity is strong at 13.19%, indicating effective use of shareholder funds. However, the equity ratio stands at 74.45%, which is stable but shows a slight decrease in equity proportion compared to total assets over time.

Cash Flow

CSW Industrials shows a slight decline in free cash flow growth at -1.72% in the TTM, which may indicate potential cash flow challenges. The operating cash flow to net income ratio is nearly 1, suggesting efficient conversion of income to cash. The free cash flow to net income ratio is strong at 91.53%, reflecting good cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	964.79M	878.30M	792.84M	757.90M	626.43M	626.43M
Gross Profit	416.62M	393.31M	350.75M	318.21M	252.69M	255.96M
EBITDA	235.87M	223.39M	198.90M	174.52M	133.06M	133.80M
Net Income	143.59M	136.65M	101.65M	96.44M	66.39M	66.39M
Balance Sheet
Total Assets	1.52B	1.38B	1.04B	1.04B	995.36M	995.36M
Cash, Cash Equivalents and Short-Term Investments	31.47M	225.84M	22.16M	18.45M	16.62M	16.62M
Total Debt	135.46M	69.36M	233.56M	318.37M	325.32M	325.32M
Total Liabilities	369.40M	286.63M	408.25M	499.31M	510.95M	510.95M
Stockholders Equity	1.13B	1.07B	615.72M	525.67M	469.09M	469.09M
Cash Flow
Free Cash Flow	147.70M	152.10M	147.76M	107.50M	53.44M	57.42M
Operating Cash Flow	161.36M	168.36M	164.33M	121.45M	69.09M	66.25M
Investing Cash Flow	-392.31M	-102.22M	-45.45M	-69.72M	-51.46M	-289.89M
Financing Cash Flow	-9.41M	138.05M	-114.07M	-49.29M	-13.04M	214.05M

CSW Industrials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 295.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSW, the sentiment is Positive. The current price of 295.88 is above the 20-day moving average (MA) of 267.33, above the 50-day MA of 253.35, and above the 200-day MA of 278.30, indicating a bullish trend. The MACD of 14.21 indicates Negative momentum. The RSI at 72.34 is Negative, neither overbought nor oversold. The STOCH value of 85.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSW.

CSW Industrials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MWA	77 Outperform	$3.84B	20.19	21.40%	1.11%	8.75%	64.82%
CSW	76 Outperform	$5.08B	35.72	13.29%	0.27%	14.87%	15.63%
FELE	71 Outperform	$4.19B	30.74	10.89%	1.13%	5.06%	-22.73%
KAI	68 Neutral	$3.39B	33.31	11.32%	0.48%	-0.96%	-11.55%
MIR	66 Neutral	$6.35B	214.69	1.58%	―	7.81%	―
NPO	64 Neutral	$4.77B	55.68	5.80%	0.56%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CSW Industrials Corporate Events

CSW Industrials Completes Acquisition of MARS Parts

On November 4, 2025, CSW Industrials completed the acquisition of MARS Parts for approximately $650 million, expanding its HVAC/R product portfolio with motors, capacitors, and other components. This strategic acquisition aligns with CSW’s growth strategy by enhancing its product offerings and leveraging existing distribution channels, while maintaining strong financial health through a new credit agreement and term loan.

CSW Industrials Acquires Motors & Armatures for $650M

On October 1, 2025, CSW Industrials announced a definitive agreement to acquire Motors & Armatures Parts for $650 million, aiming to expand its HVAC/R product portfolio and enhance its market position. The acquisition is expected to be immediately accretive to CSW’s earnings, with significant cost synergies and a projected EBITDA margin of over 30% within a year, positioning CSW for accelerated growth and increased shareholder value.