CSW Industrials, Inc.
$271.18
+0.90%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 40.3).
Valuation inputs: P/E 40.3, earnings yield +2.5%, momentum +0.9%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +10.7%, ROIC +8.0%).
Profitability stack: net margin +10.3%, ROE +10.7%, ROIC +8.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +53.8%, momentum +0.9%, net margin +10.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
CSW Industrials, Inc. Market vs Earnings Trajectory
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CSW Industrials, Inc. Fair Value Envelope
CSW Industrials, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
CSW Industrials, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Declining FCF warrants attention. Investigate whether due to temporary factors or fundamental deterioration.
Working Capital Impact
Neutral working capital impact. Changes in current assets and liabilities balanced out.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
CSW Industrials, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
CSW Industrials, Inc. Street Expectations Map
Wall Street analysts project that CSW stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 316.25, with estimates ranging from a low of 285.00 to a high of 378.00.
The consensus 1-year price target stands at 316.25, with estimates ranging from a low of 285.00 to a high of 378.00.
Analyst Consensus Analysis
Upside Potential
Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
CSW Industrials, Inc. Insider Positioning
During the last 12 months, insiders have purchased $77K and sold $6.11M worth of CSW shares, resulting in $6.03M of net selling activity.
3 Months
300
76.99K
6.7K
1.87M
-1.8M
-$1.79M
3-6 Months
0
0.00
8.3K
2.54M
-2.5M
-$2.54M
6-9 Months
0
0.00
4.6K
1.18M
-1.2M
-$1.18M
9-12 Months
0
0.00
1.9K
524.87K
-525K
-$525K
Top Buyers
Ash Darron K
Director
$77K
Top Sellers
Armes Joseph B
Director, Officer: Chairman, President & Ceo
$3.12M
Sullivan Don
Officer: Evp, Chief Strategy Officer
$1.65M
Alverson Luke
Officer: Svp, Gc & Secretary
$794K
Perry James E
Officer: Evp, Cfo
$283K
Underwood Jeff
Officer: Svp, Gm Contractor Solutions
$103K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $6.03M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
csw Dividend History
Learning Layer
Related Guides
Build conviction on CSW by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.