CSW Industrials (CSW) AI Stock Analysis

• Market Cap: $4.10B
• Dividend Yield: 0.22%
• Average Volume (3M): 135.46K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.52
• Revenue Growth: 12.27%
• EPS Growth: 19.05%
• Country: US
• Employees: 2,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.96
• Shares Outstanding: 16,802,467
• 10 Day Avg. Volume: 117,925
• 30 Day Avg. Volume: 135,461
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $278.00
• Price Target Upside: 13.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $265.00 ▲(8.57% Upside)

CSW Industrials' strong financial performance is the most significant factor, contributing positively to the overall score. However, the technical analysis and valuation metrics present challenges, with bearish momentum and a high P/E ratio suggesting potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Acquisition Strategy

Strategic acquisitions like MARS enhance product offerings and market reach, driving future growth and competitive positioning.

Profitability

High profitability margins reflect operational efficiency and competitive advantage, ensuring sustained earnings and reinvestment potential.

Negative Factors

Debt Financing

Increased debt to finance acquisitions may strain financial resources and limit flexibility, impacting long-term financial health.

Market Overvaluation Concerns

High valuation metrics could indicate market overvaluation, potentially leading to investor caution and affecting stock performance.

Dividend Yield

A low dividend yield may deter income-focused investors, limiting attractiveness compared to peers offering higher returns.

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 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 exhibits strong financial performance with robust revenue growth, high profitability margins, a solid balance sheet with low leverage, and efficient cash flow generation. These factors collectively contribute to its strong financial standing and growth potential.

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	915.77M	878.30M	792.84M	757.90M	626.43M	419.20M
Gross Profit	401.33M	393.31M	350.75M	318.21M	255.96M	184.80M
EBITDA	226.27M	223.39M	192.03M	174.73M	133.06M	76.29M
Net Income	138.99M	136.65M	101.65M	96.44M	66.39M	40.10M
Balance Sheet
Total Assets	1.54B	1.38B	1.04B	1.04B	995.36M	874.96M
Cash, Cash Equivalents and Short-Term Investments	37.99M	225.84M	22.16M	18.45M	16.62M	10.09M
Total Debt	95.00M	69.36M	215.37M	253.00M	252.78M	242.34M
Total Liabilities	405.66M	286.63M	408.25M	499.31M	510.95M	462.94M
Stockholders Equity	1.11B	1.07B	615.72M	525.67M	469.09M	412.01M
Cash Flow
Free Cash Flow	150.28M	152.10M	147.76M	107.50M	53.44M	57.42M
Operating Cash Flow	166.35M	168.36M	164.33M	121.45M	69.09M	66.25M
Investing Cash Flow	-425.66M	-102.22M	-45.45M	-72.17M	-51.46M	-289.89M
Financing Cash Flow	278.62M	138.05M	-114.07M	-46.84M	-13.04M	214.05M

CSW Industrials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 244.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 244.08 is above the 20-day moving average (MA) of 243.19, below the 50-day MA of 251.53, and below the 200-day MA of 289.59, indicating a neutral trend. The MACD of -2.16 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.98 is Neutral, 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	―	$4.02B	27.32	17.33%	1.03%	10.19%	20.71%
FELE	―	$4.24B	31.11	10.88%	1.06%	5.06%	-22.83%
NPO	―	$4.79B	56.62	5.78%	0.54%	4.99%	169.24%
KAI	―	$3.54B	34.52	11.25%	0.45%	-0.96%	-11.55%
MIR	―	$6.40B	618.92	1.58%	―	7.81%	―
CSW	―	$4.10B	28.93	15.79%	0.22%	12.27%	19.05%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CSW Industrials Corporate Events

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.