CSW Industrials (CSW) AI Stock Analysis

• Market Cap: $4.06B
• Dividend Yield: 0.34%
• Average Volume (3M): 153.50K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 1.69
• 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: 170,118
• 30 Day Avg. Volume: 153,500
• 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: 1.04
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: $278.75
• Price Target Upside: 14.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 10.35
• Revenue Forecast (FY): $1.07B

• Rating: 73 Outperform
• Price Target: $276.00 ▲(13.56% Upside)

CSW Industrials' strong financial performance and strategic acquisitions are significant strengths, contributing to a solid overall score. However, high valuation metrics and technical indicators showing mixed signals, along with challenges in organic growth and margin pressures, temper the overall outlook.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful integration of acquisitions, enhancing long-term business prospects.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth opportunities.

Successful Acquisitions

Strategic acquisitions expand product offerings and market reach, positioning CSW for sustained growth and competitive advantage.

Negative Factors

Organic Revenue Decline

Declining organic revenue suggests challenges in core business growth, potentially impacting long-term revenue sustainability.

Margin Contraction

Margin contraction across segments indicates cost pressures and competitive challenges, potentially affecting profitability.

Challenges in Engineered Building Solutions

Revenue and EBITDA declines in this segment highlight operational challenges, affecting overall business performance and growth.

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 shows strong financial performance with robust revenue growth, solid profitability, and a strong balance sheet. The company maintains low leverage and efficient cash flow generation, indicating a well-positioned financial standing.

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	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	215.37M	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: Negative
• Last Price: 243.04
• 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 243.04 is below the 20-day moving average (MA) of 245.11, below the 50-day MA of 245.49, and below the 200-day MA of 280.72, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 18.19 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
CSW	73 Outperform	$4.06B	28.23	13.29%	0.34%	14.87%	15.63%
FELE	71 Outperform	$4.10B	30.07	10.89%	1.17%	5.06%	-22.73%
MWA	71 Outperform	$3.62B	19.02	21.40%	1.17%	8.75%	64.82%
MIR	66 Neutral	$6.19B	202.55	1.58%	―	7.81%	―
NPO	64 Neutral	$4.31B	50.29	5.80%	0.54%	6.44%	101.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KAI	61 Neutral	$2.95B	28.97	11.32%	0.53%	-0.96%	-11.55%

CSW Industrials Corporate Events

CSW Industrials Reports Record Earnings and Strategic Growth

CSW Industrials, Inc. is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions, providing niche, value-added products with a focus on performance and reliability across various markets including HVAC/R, plumbing, and electrical.

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.

The most recent analyst rating on (CSW) stock is a Hold with a $285.00 price target. To see the full list of analyst forecasts on CSW Industrials stock, see the CSW Stock Forecast page.

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.

The most recent analyst rating on (CSW) stock is a Buy with a $295.00 price target. To see the full list of analyst forecasts on CSW Industrials stock, see the CSW Stock Forecast page.

CSW Industrials Reports Record First Quarter Results

CSW Industrials, Inc. is a diversified industrial growth company operating in three primary segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions, providing niche, value-added products across various markets including HVAC/R, plumbing, and electrical.