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CSW Industrials
(NYSE:CSW)
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Rating:63Neutral
Price Target:
$290.00
▲(0.28% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by solid operating performance and cash generation, but is held back by the clear increase in leverage and a premium valuation. Near-term technical trend weakness further tempers the outlook, while the latest earnings call was supportive due to positive FY27 growth/FCF expectations despite higher interest and amortization headwinds.
Positive Factors
Diversified contractor & industrial consumables model
CSW's business sells branded, contractor‑facing and industrial consumables through broad distribution channels. That mix of recurring consumables, contractor exposure and MRO end markets supports durable demand, cross‑selling and cash visibility across construction and maintenance cycles.
Negative Factors
Higher leverage reduces flexibility
Leverage has moved up materially from prior-year lows, leaving less cushion for cyclical downturns. A net‑debt/EBITDA around 2.5x tightens covenant headroom and limits optionality for further large M&A or buybacks, making the company more sensitive to earnings volatility and macro slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified contractor & industrial consumables model
CSW's business sells branded, contractor‑facing and industrial consumables through broad distribution channels. That mix of recurring consumables, contractor exposure and MRO end markets supports durable demand, cross‑selling and cash visibility across construction and maintenance cycles.
Read all positive factors
CSW Industrials (CSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.20B
Dividend Yield0.36%
Average Volume (3M)149.13K
Price to Earnings (P/E)43.4
Beta (1Y)1.55
Revenue Growth27.71%
EPS Growth-12.90%
CountryUS
Employees2,700
SectorIndustrials
Sector Strength72
IndustryIndustrial - Specialties
Share Statistics
EPS (TTM)7.35
Shares Outstanding16,293,488
10 Day Avg. Volume165,606
30 Day Avg. Volume149,125
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$347.83Price Target Upside20.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)12.44
Revenue Forecast (FY)$1.28B
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 makes money primarily by manufacturing and selling branded specialty products through two reportable segments: (1) Contractor Solutions and (2) Specialized Reliability Solutions. In Contractor Solutions, revenue is generated from the sale of b...
CSW Industrials Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.17B | 1.08B | 878.30M | 792.84M | 757.90M | 626.43M |
| Gross Profit | 495.60M | 453.68M | 393.31M | 350.75M | 318.21M | 252.69M |
| EBITDA | 281.06M | 249.86M | 223.39M | 198.90M | 174.52M | 133.06M |
| Net Income | 120.86M | 112.03M | 136.65M | 101.65M | 96.44M | 66.39M |
Balance Sheet | ||||||
| Total Assets | 2.33B | 2.32B | 1.38B | 1.04B | 1.04B | 995.36M |
| Cash, Cash Equivalents and Short-Term Investments | 47.49M | 33.80M | 225.84M | 22.16M | 18.45M | 16.62M |
| Total Debt | 855.45M | 931.98M | 69.36M | 233.56M | 318.37M | 325.32M |
| Total Liabilities | 1.24B | 1.25B | 286.63M | 408.25M | 499.31M | 510.95M |
| Stockholders Equity | 1.07B | 1.05B | 1.07B | 615.72M | 525.67M | 469.09M |
Cash Flow | ||||||
| Free Cash Flow | 144.28M | 132.40M | 152.10M | 147.76M | 107.50M | 53.44M |
| Operating Cash Flow | 164.63M | 149.65M | 168.36M | 164.33M | 121.45M | 69.09M |
| Investing Cash Flow | -722.35M | -1.04B | -102.22M | -45.45M | -69.72M | -51.46M |
| Financing Cash Flow | 567.71M | 701.47M | 138.05M | -114.07M | -49.29M | -13.04M |
CSW Industrials Technical Analysis
Positive
289.18
Price Trends
282.44
Positive
277.87
Positive
280.83
Positive
Market Momentum
13.37
Negative
70.77
Negative
91.81
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 289.18 is below the 20-day moving average (MA) of 293.71, above the 50-day MA of 282.44, and above the 200-day MA of 280.83, indicating a bullish trend. The MACD of 13.37 indicates Negative momentum. The RSI at 70.77 is Negative, neither overbought nor oversold. The STOCH value of 91.81 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 32 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.63B | 29.92 | 11.58% | 1.03% | 7.38% | -10.43% | |
73 Outperform | $3.63B | 35.06 | 10.74% | 0.45% | 4.88% | -7.08% | |
71 Outperform | $3.95B | 18.84 | 20.74% | 1.10% | 6.57% | 43.96% | |
68 Neutral | $6.63B | 152.39 | 2.83% | 0.38% | 10.21% | -48.98% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $5.20B | 43.39 | 11.19% | 0.38% | 27.71% | -12.90% | |
59 Neutral | $3.73B | 151.31 | 1.33% | ― | 15.68% | 133.41% |
* 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.