CSW Industrials Inc. manufactures and sells industrial products, coatings, sealants and adhesives, and specialty chemicals in the United States and internationally. The company was founded in 2014 and is based in Dallas, Texas.
CSWI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CSWI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Csw Industrials Inc ranked in the 39th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CSWI, they are:
The company's balance sheet shows it gets 99% of its capital from equity, and 1% of its capital from debt. Its equity weight surpasses that of 96.95% of free cash flow generating stocks in the Industrials sector.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than merely 4.77% of the free cash flow producing stocks we're observing.
CSWI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 53.75% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CSWI, try AVY, MRCY, NES, CCRN, and ITW.
CSW Industrials (CSWI) is a company of which I would be happy to own 100%. The Dallas-based firm is best classified as an "industrial growth" company and embodies many of the characteristics I look for in a business. CSW provides specialty solutions for sticky and growing industrial markets, earns attractive...