📊 CSW Key Takeaways
Investment Thesis
CSW Industrials demonstrates solid operational fundamentals with double-digit revenue growth (10.8% YoY) and strong free cash flow generation (139.2M, 18% FCF margin), indicating efficient capital deployment. The company maintains healthy profitability metrics with 16.7% operating margin and manageable leverage (0.72x debt-to-equity), though modest ROE (8.6%) and ROA (4.0%) suggest room for operational improvement in asset utilization.
CSW Strengths
- Strong free cash flow generation at $139.2M with 18% FCF margin demonstrates operational efficiency
- Solid revenue growth of 10.8% YoY in adhesives & sealants sector with gross margins at 42.3%
- Conservative balance sheet with manageable 0.72x debt-to-equity ratio and healthy current ratio of 2.36x
- EPS growth of 28.5% YoY outpacing net income growth suggests disciplined capital structure
CSW Risks
- Net income declined 0.6% YoY despite 10.8% revenue growth, indicating margin compression or higher operating expenses
- Low absolute return on assets (4.0%) and ROE (8.6%) relative to total asset base of $2.3B suggests capital inefficiency
- Quick ratio of 0.97x is below 1.0, indicating potential near-term liquidity constraints if current assets decline
- Limited cash position ($40.2M) relative to long-term debt ($768.3M) constrains financial flexibility
Key Metrics to Watch
- Operating margin trend - monitor if margins stabilize or continue compressing
- Free cash flow sustainability - ensure FCF conversion remains above 18% as revenue scales
- Return on assets and equity trends - track capital efficiency improvements
- Debt reduction progress - monitor deleveraging given relatively high absolute debt levels
CSW Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.36x current ratio provides a solid financial cushion.
CSW Profitability Ratios
CSW vs Default Sector
How CSW INDUSTRIALS, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CSW Balance Sheet & Liquidity
CSW 5-Year Financial Trend
5-Year Trend Summary: CSW INDUSTRIALS, INC.'s revenue has grown significantly by 110% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.20 reflects profitable operations.
CSW Growth Metrics (YoY)
CSW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $193.6M | $10.3M | $0.62 |
| Q2 2026 | $227.9M | $36.1M | $2.26 |
| Q1 2026 | $226.2M | $38.6M | $2.43 |
| Q3 2025 | $175.0M | $9.2M | $0.59 |
| Q2 2025 | $203.7M | $30.1M | $1.93 |
| Q1 2025 | $203.4M | $30.6M | $1.97 |
| Q3 2024 | $171.1M | $9.2M | $0.59 |
| Q2 2024 | $191.2M | $24.3M | $1.57 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CSW Capital Allocation
CSW SEC Filings
Access official SEC EDGAR filings for CSW INDUSTRIALS, INC. (CIK: 0001624794)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSW
What is the AI rating for CSW?
CSW INDUSTRIALS, INC. (CSW) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSW's key strengths?
Strong free cash flow generation at $139.2M with 18% FCF margin demonstrates operational efficiency. Solid revenue growth of 10.8% YoY in adhesives & sealants sector with gross margins at 42.3%.
What are the risks of investing in CSW?
Net income declined 0.6% YoY despite 10.8% revenue growth, indicating margin compression or higher operating expenses. Low absolute return on assets (4.0%) and ROE (8.6%) relative to total asset base of $2.3B suggests capital inefficiency.
What is CSW's revenue and growth?
CSW INDUSTRIALS, INC. reported revenue of $773.6M.
Does CSW pay dividends?
CSW INDUSTRIALS, INC. pays dividends, with $13.6M distributed to shareholders in the trailing twelve months.
Where can I find CSW SEC filings?
Official SEC filings for CSW INDUSTRIALS, INC. (CIK: 0001624794) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSW's EPS?
CSW INDUSTRIALS, INC. has a diluted EPS of $5.47.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.