Csw Industrials Inc (CSW)
NYSE:CSW
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CSW Industrials
(NYSE:CSW)
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Rating:61Neutral
Price Target:
$293.00
▲(0.92% Upside)
Action:Reiterated
Date:05/26/26
The score is primarily supported by solid underlying operating performance and constructive FY27 guidance, but is held back by the pronounced increase in leverage and recent cash-flow/profitability softness. Valuation is a major constraint due to the very high P/E, while technical signals are mixed with slightly negative momentum.
Positive Factors
Sustained Revenue Growth
Multi-year top-line expansion that crossed $1.0B reflects durable demand across contractor, reliability and building end markets. A larger, diversified revenue base improves resiliency, funds reinvestment and makes synergy capture and scale economics more sustainable over the next 2–6 months.
Negative Factors
Elevated Leverage
A sharp increase in leverage reduces balance-sheet flexibility and raises refinancing and covenant risk. Higher debt levels increase fixed interest obligations, constrain discretionary capital allocation and magnify downside in cyclical end markets, making deleveraging a multi‑quarter priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Multi-year top-line expansion that crossed $1.0B reflects durable demand across contractor, reliability and building end markets. A larger, diversified revenue base improves resiliency, funds reinvestment and makes synergy capture and scale economics more sustainable over the next 2–6 months.
Read all positive factors
CSW Industrials (CSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.44B
Dividend Yield0.26%
Average Volume (3M)133.49K
Price to Earnings (P/E)40.4
Beta (1Y)1.55
Revenue Growth23.25%
EPS Growth-20.66%
CountryUS
Employees2,600
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)6.73
Shares Outstanding16,319,483
10 Day Avg. Volume127,802
30 Day Avg. Volume133,486
Financial Highlights & Ratios
PEG Ratio-1.94
Price to Book (P/B)4.13
Price to Sales (P/S)4.01
P/FCF Ratio32.78
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue5.01
Enterprise Value/Gross Profit11.94
Enterprise Value/Ebitda29.64
Forecast
1Y Price Target
$310.80Price Target Upside7.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)12.02
Revenue Forecast (FY)$1.27B
CSW Industrials Business Overview & Revenue Model
Company Description
CSW Industrials, Inc. is a global enterprise that supplies a diverse portfolio of industrial products across the United States and international markets. The company's business activities are structured into three primary divisions: Contractor Sol...
How the Company Makes Money
CSW Industrials makes money primarily by selling branded, specialized industrial and building products through its operating segments. (1) Contractor Solutions generates revenue from products used by contractors and technicians—particularly in HVA...
CSW Industrials Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: management delivered record Q4 revenue ($309M, +34% YoY), record adjusted EBITDA ($83M, +39%), record adjusted EPS ($3.14, +21%), and crossed $1.0B in annual revenue while completing multiple strategic acquisitions that are already producing synergies. At the same time, the company faces near-term headwinds including higher interest expense from a shift to net debt, elevated amortization (~$61M annualized), Q4 cash-flow weakness, acquisition-related margin dilution and one-time impairment/exit charges tied to the GRD businesses. Management emphasized realized synergies, pricing and restructuring actions, balance-sheet discipline (net debt/EBITDA 2.55x), and expectations for improved FY27 adjusted EBITDA, EPS (adjusted) and free cash flow. Overall, the positive operating momentum, record metrics, and clear synergy execution outweigh the meaningful but largely non-operational and transitional lowlights reported for the quarter.Positive Updates
Record Quarterly Revenue
Fiscal Q4 revenue of $309.0M, up 34% year-over-year, marking a record quarter and contributing to crossing $1.0B in annual revenue for fiscal 2026.
Negative Updates
Higher Interest Expense and Shift to Net Debt
Interest expense increased materially: Q4 interest expense $11.8M vs prior-year interest income $1.6M; net interest expense in Q4 was ~$13.4M. Fiscal 2027 interest expense is estimated at approximately $46M as the company moved from net cash to net debt ($871.5M outstanding across revolver and Term Loan A at quarter end).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Revenue
Fiscal Q4 revenue of $309.0M, up 34% year-over-year, marking a record quarter and contributing to crossing $1.0B in annual revenue for fiscal 2026.
Read all positive updates
Company Guidance
The company guided to full‑year fiscal 2027 revenue growth across all segments (EBS growth excludes the exiting GRD businesses) and “significant” adjusted EPS growth while noting GAAP EPS will be pressured by higher interest and a step‑up in amortization; key quantified assumptions include ~ $61M of annualized intangible amortization, roughly $46M of interest expense, a GAAP tax rate of ~23% and an adjusted tax rate of ~26%, and a net‑debt position of $843M (net debt / EBITDA 2.55x with covenants targeted at 1–3x) with $871.5M outstanding on the revolver/Term Loan A and a $300M swap fixing SOFR at 3.42% for three years; segment specifics call for Contractor Solutions to deliver solid revenue and EBITDA growth with Mars synergies now expected to exceed $12M and Mars parts targeting >30% run‑rate EBITDA by the first anniversary, Specialized Reliability Solutions to realize higher full‑year EBITDA margin (sustained ~20% target) as acquisition synergies and restructuring take effect, Engineered Building Solutions (ex‑GRD) to deliver revenue growth and an EBITDA margin well in excess of 20%, and the company to generate materially stronger free cash flow versus fiscal 2026.CSW Industrials Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.08B | 878.30M | 792.84M | 757.90M | 626.43M |
| Gross Profit | 453.68M | 393.31M | 350.75M | 318.21M | 252.69M |
| EBITDA | 182.78M | 223.39M | 198.90M | 174.52M | 133.06M |
| Net Income | 112.03M | 136.65M | 101.65M | 96.44M | 66.39M |
Balance Sheet | |||||
| Total Assets | 2.32B | 1.38B | 1.04B | 1.04B | 995.36M |
| Cash, Cash Equivalents and Short-Term Investments | 33.80M | 225.84M | 22.16M | 18.45M | 16.62M |
| Total Debt | 931.98M | 69.36M | 233.56M | 318.37M | 325.32M |
| Total Liabilities | 1.25B | 286.63M | 408.25M | 499.31M | 510.95M |
| Stockholders Equity | 1.05B | 1.07B | 615.72M | 525.67M | 469.09M |
Cash Flow | |||||
| Free Cash Flow | 132.40M | 152.10M | 147.76M | 107.50M | 53.44M |
| Operating Cash Flow | 149.65M | 168.36M | 164.33M | 121.45M | 69.09M |
| Investing Cash Flow | -1.04B | -102.22M | -45.45M | -69.72M | -51.46M |
| Financing Cash Flow | 701.47M | 138.05M | -114.07M | -49.29M | -13.04M |
CSW Industrials Technical Analysis
Neutral
290.34
Price Trends
277.83
Negative
280.60
Negative
274.97
Negative
Market Momentum
-1.08
Negative
49.47
Neutral
38.38
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 290.34 is above the 20-day moving average (MA) of 270.52, above the 50-day MA of 277.83, and above the 200-day MA of 274.97, indicating a neutral trend. The MACD of -1.08 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.07B | 162.67 | 2.83% | 0.56% | 10.21% | -48.98% | |
71 Outperform | $4.04B | 19.47 | 20.74% | 1.09% | 6.57% | 43.96% | |
70 Outperform | $4.58B | 30.42 | 11.47% | 1.06% | 7.98% | -13.65% | |
69 Neutral | $3.34B | 32.21 | 11.03% | 0.46% | 4.88% | -7.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.44B | 40.44 | 10.28% | 0.26% | 23.25% | -20.66% | |
57 Neutral | $4.15B | 161.42 | 1.43% | ― | 12.73% | ― |
* Industrials Sector Average
CSW
CSW Industrials
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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.