Csw Industrials Inc (CSW)
NYSE:CSW
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CSW Industrials
(NYSE:CSW)
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Rating:66Neutral
Price Target:
$325.00
▲(11.86% Upside)
Action:ReiteratedDate:01/30/26
The score is driven primarily by strong underlying financial performance (high margins and solid free cash flow), supported by a generally positive earnings-call outlook on acquisition synergies and disciplined leverage. These positives are tempered by weak near-term technicals (oversold/downtrend versus key moving averages) and a demanding valuation (high P/E with low yield).
Positive Factors
High margins & profitability
Consistently strong gross and net margins indicate durable pricing power and operational leverage across CSW’s diversified product lines. High margins support internal cash generation and reinvestment capacity, cushioning the business through cyclical end markets and integration costs.
Negative Factors
Increased leverage and interest costs
A meaningful rise in debt and interest expense reduces net income and free cash flow available for growth or buybacks. Higher financing costs increase sensitivity to rate moves and elongate payback on acquisitions, raising refinancing and covenant monitoring risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & profitability
Consistently strong gross and net margins indicate durable pricing power and operational leverage across CSW’s diversified product lines. High margins support internal cash generation and reinvestment capacity, cushioning the business through cyclical end markets and integration costs.
Read all positive factors
CSW Industrials (CSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.79B
Dividend Yield0.26%
Average Volume (3M)133.01K
Price to Earnings (P/E)118.6
Beta (1Y)1.59
Revenue Growth14.87%
EPS Growth15.63%
CountryUS
Employees2,600
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.42
Shares Outstanding16,470,230
10 Day Avg. Volume110,163
30 Day Avg. Volume133,011
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)4.42
Price to Sales (P/S)5.39
P/FCF Ratio31.13
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.58
Enterprise Value/Gross Profit13.07
Enterprise Value/Ebitda24.43
Forecast
1Y Price Target
$329.60Price Target Upside13.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)11.8
Revenue Forecast (FY)$1.27B
CSW Industrials Business Overview & Revenue Model
Company Description
CSW Industrials, Inc. provides various industrial products in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Sol...
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 estab...
CSW Industrials Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and strategic picture: record revenue and adjusted EBITDA, strong free cash flow, substantial accretive acquisitions with early synergy progress, and disciplined capital actions (including meaningful buybacks). Offsetting these positives are shorter-term financial headwinds driven by acquisition-related amortization and higher interest expense, margin compression due to acquisition dilution and tariff-driven input cost pressure, and near-term organic weakness in the Contractor Solutions end market from customer destocking and housing softness. Management expresses confidence in integration, synergy realization, and eventual margin recovery while maintaining leverage within target levels.Positive Updates
Record Revenue and Adjusted EBITDA
Consolidated fiscal Q3 revenue of $233.0M, up 20% year-over-year, and record adjusted consolidated EBITDA of $45.0M, up 7% versus the prior year. Management emphasized adjusted EBITDA as the best multi-period comparison metric given recent acquisitions.
Negative Updates
Adjusted EPS and Interest Expense Pressure
Adjusted EPS was $1.42, down 21% year-over-year. The reduction was primarily driven by approximately $10M of higher interest expense as the company moved from a net cash to a net debt position (quarterly interest expense ~$8M vs. prior-year interest income of $2M).
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Consolidated fiscal Q3 revenue of $233.0M, up 20% year-over-year, and record adjusted consolidated EBITDA of $45.0M, up 7% versus the prior year. Management emphasized adjusted EBITDA as the best multi-period comparison metric given recent acquisitions.
Read all positive updates
Company Guidance
Guidance highlights: management reiterated a target net-debt-to-EBITDA range of 1.0–3.0x (quarter-end net debt for covenant purposes $764M, leverage 2.3x) and said they’ll provide a clearer fiscal‑2027 outlook on the fiscal Q4 call in May; they funded the $650M Mars Parts deal with a $600M five‑year term loan A (SOFR+200bps, hedged in part with a SOFR swap at 3.416% for three years) and had $200M revolver outstanding at quarter end, and opportunistically repurchased $70M of stock (283,000 shares at $246 avg); on Mars Parts they reiterated a $10M run‑rate synergy target and 30% EBITDA margin within 12 months and said they now expect to exceed that goal; annualized amortization from recent acquisitions is expected to be about $63M; Contractor Solutions remains a mid‑to‑high single‑digit organic growth target through the cycle (noting Q3 inorganic‑driven consolidated revenue of $233M, +20% YoY, with a 2.9% consolidated organic decline and Contractor Solutions revenue $168M, +27% overall but -5.1% organic), and they expect China to be ~10% of Contractor Solutions COGS by end‑FY26, Vietnam the low‑30s%, other Asia ~15%; SRS is targeting a sustained 20% EBITDA margin with restructuring benefits effective April 1; and tax guidance for FY2026 was ~23% GAAP (~26% adjusted), all while continuing to prioritize disciplined capital allocation.CSW Industrials Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
73
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 878.30M | 792.84M | 757.90M | 626.43M | 626.43M |
| Gross Profit | 428.95M | 393.31M | 350.75M | 318.21M | 252.69M | 255.96M |
| EBITDA | 229.48M | 223.39M | 198.90M | 174.52M | 133.06M | 133.80M |
| Net Income | 126.90M | 136.65M | 101.65M | 96.44M | 66.39M | 66.39M |
Balance Sheet | ||||||
| Total Assets | 2.29B | 1.38B | 1.04B | 1.04B | 995.36M | 995.36M |
| Cash, Cash Equivalents and Short-Term Investments | 40.24M | 225.84M | 22.16M | 18.45M | 16.62M | 16.62M |
| Total Debt | 797.76M | 69.36M | 233.56M | 318.37M | 325.32M | 325.32M |
| Total Liabilities | 1.20B | 286.63M | 408.25M | 499.31M | 510.95M | 510.95M |
| Stockholders Equity | 1.07B | 1.07B | 615.72M | 525.67M | 469.09M | 469.09M |
Cash Flow | ||||||
| Free Cash Flow | 161.97M | 152.10M | 147.76M | 107.50M | 53.44M | 57.42M |
| Operating Cash Flow | 178.63M | 168.36M | 164.33M | 121.45M | 69.09M | 66.25M |
| Investing Cash Flow | -1.02B | -102.22M | -45.45M | -69.72M | -51.46M | -289.89M |
| Financing Cash Flow | 663.62M | 138.05M | -114.07M | -49.29M | -13.04M | 214.05M |
CSW Industrials Technical Analysis
Positive
290.54
Price Trends
278.40
Positive
288.64
Positive
274.78
Positive
Market Momentum
0.47
Negative
63.73
Neutral
89.22
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 290.54 is above the 20-day moving average (MA) of 264.87, above the 50-day MA of 278.40, and above the 200-day MA of 274.78, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 89.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSW.
CSW Industrials Risk Analysis
CSW Industrials disclosed 30 risk factors in its most recent earnings report. CSW Industrials reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSW Industrials Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.64B | 21.55 | 21.00% | 1.09% | 8.75% | 64.82% | |
71 Outperform | $5.87B | 111.03 | 5.80% | 0.56% | 6.44% | 101.24% | |
70 Outperform | $4.45B | 29.38 | 11.30% | 1.06% | 5.06% | -22.73% | |
69 Neutral | $3.83B | 33.07 | 11.32% | 0.46% | -0.96% | -11.55% | |
66 Neutral | $4.79B | 118.57 | 11.59% | 0.26% | 14.87% | 15.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $4.83B | 187.00 | 1.73% | ― | 7.81% | ― |
* Industrials Sector Average
CSW
CSW Industrials
290.54
-7.38
-2.48%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.