| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 39.1x | 17.3x | Bottom tier | |
Growth | 63 | 27.7% | 7.1% | Around median | |
Quality | 68 | 9.6% | 4.5% | Top tier | |
Safety | 61 | 3.3x | 2.6x | Around median | |
Capital Return | 74 | 0.38% | 0.19% | Top tier | |
Momentum | 65 | 24.8% | 0.2% | Around median | |
Sentiment | 47 | 4 | 3 | Around median |
The floor: what the company is worth if growth stopped today
81% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.27% as of 2026-10-06. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CSW Industrials operates as a diversified industrial company selling specialized products to the heating, ventilation, air conditioning, refrigeration, plumbing, and electrical markets, alongside industrial reliability solutions and engineered building products. The company generates revenue through three segments: Contractor Solutions, which includes repair, replacement, and installation products such as Mars, Aspen, and DuctStrip; Specialized Reliability Solutions, which provides products and solutions for industrial applications; and Engineered Building Solutions, which includes product lines such as Smoke Guard and VACO. In Q4 fiscal 2026, Contractor Solutions represented approximately 76% of consolidated revenue, generating $237 million, compared with $46 million for Specialized Reliability Solutions and $27.6 million for Engineered Building Solutions.
In Q1 fiscal 2027, revenue was $350.6 million, gross profit was $157.4 million, net income was $49.8 million, and earnings per share were $3.04. These figures equate to a gross margin of approximately 44.9% and a net income margin of approximately 14.2%. Fiscal 2027 trailing-twelve-month revenue was approximately $1.2 billion, with gross profit of $495.6 million and net income of $120.9 million.
Q4 fiscal 2026 results showed the nature of the growth that preceded the fiscal 2027 figures; revenue increased 34% to $309 million, but consolidated organic growth was limited to 2.8% because acquisitions were the largest driver. Adjusted gross profit was $135 million at a margin of 43.5%, down 70 basis points, while adjusted earnings before interest, taxes, depreciation, and amortization increased 39% to $83 million and its margin expanded to 26.8%. GAAP net income for the quarter was $20.2 million, while adjusted earnings per share were $3.14, up 21% year over year.
The analyst consensus on CSW shares is "Neutral," with an average price target of $299 and a relatively narrow target range of $285 to $313. The average target falls within the 52-week range of $230.45 to $355.483 and well below its high, reflecting the market's balance between acquisition growth and synergies on one hand, and higher debt and interest expense, margin dilution, and weak organic growth on the other. No price-to-earnings ratio is available in the provided data, so a reliable judgment based on the earnings multiple cannot be made.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue increased 34% to a record $309 million, while adjusted earnings before interest, taxes, depreciation, and amortization increased 39% to $83 million. Acquisitions were the largest driver, as consolidated organic growth was limited to 2.8%. In Contractor Solutions, acquisitions added $67 million of growth, compared with an organic contribution of $4.3 million.
Mars and Aspen increase the company's exposure to HVAC repair parts alongside its unit replacement business, making the Contractor Solutions portfolio more balanced between the repair and replacement cycles. Aspen achieved revenue growth of 10.4% in Q4 fiscal 2026, and its growth since the acquisition on May 1, 2025, was approximately 13.5%. For Mars, the company implemented more than $10 million of synergies and expects synergies to exceed $12 million, with an operating margin above 30% by November 2026.
The company acquired DuctStrip for $21 million in Q4 fiscal 2026. The product combines the conductors for mini-split HVAC systems into a single cable to accelerate installation. Management estimated the net addition to earnings before interest, taxes, depreciation, and amortization at approximately $2 million because CSW was a major distributor of the product before the acquisition. It also added $4.8 million to its investment in Flair, which develops smart vents and room-level thermal controls for ductless systems.
Automated analysis for informational purposes only — not investment advice.
The company ended fiscal 2026 with net debt of $843 million for covenant calculation purposes and a net-debt-to-earnings before interest, taxes, depreciation, and amortization ratio of 2.55 times. This ratio is within management's target range of one to three times, but it is clearly higher than the previous net cash position. Management expects interest expense of approximately $46 million in fiscal 2027, with available cash flow directed toward debt reduction when suitable acquisitions or share repurchases are not available.
The company classified GRD US as held for sale on March 31, 2026, and decided to exit GRD Canada because of weakness in the Canadian market and multifamily housing, as well as higher aluminum costs. The decisions resulted in an impairment charge of $15.6 million and expenses related to the Canadian exit of $2.1 million, with additional expected costs of between $1 million and $2 million. Excluding GRD, Engineered Building Solutions revenue in Q4 fiscal 2026 was approximately $21.7 million, and the adjusted earnings before interest, taxes, depreciation, and amortization margin was 25.8%.
Management expects growth in revenue, adjusted earnings before interest, taxes, depreciation, and amortization, adjusted earnings per share, and free cash flow during fiscal 2027, but it did not specify a numerical range for organic growth. Execution indicators include achieving more than $12 million of Mars synergies, improving Specialized Reliability Solutions margins, and completing the GRD exit. The recovery in free cash flow following its negative $6.8 million result in Q4 fiscal 2026 and the ability of pricing to offset material and freight inflation should also be monitored.
