Discounted Cash Flow (DCF) Analysis Unlevered
CSW Industrials, Inc. (CSWI)
$140.93
-1.53 (-1.07%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 326.22 | 350.15 | 385.87 | 419.20 | 626.43 | 744.85 | 885.64 | 1,053.04 | 1,252.09 | 1,488.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 20.93 | 76.24 | 74.84 | 76.54 | 132.87 | 129.68 | 154.19 | 183.34 | 218 | 259.20 |
| EBITDA (%) | ||||||||||
| EBIT | 6 | 62.40 | 59.99 | 53.50 | 95.98 | 94.29 | 112.11 | 133.30 | 158.50 | 188.46 |
| EBIT (%) | ||||||||||
| Depreciation | 14.93 | 13.84 | 14.85 | 23.04 | 36.89 | 35.39 | 42.09 | 50.04 | 59.50 | 70.75 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 11.71 | 26.65 | 18.34 | 10.09 | 16.62 | 31.30 | 37.22 | 44.25 | 52.62 | 62.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 63.38 | 66.14 | 74.88 | 96.69 | 122.80 | 149.55 | 177.82 | 211.44 | 251.40 | 298.92 |
| Account Receivables (%) | ||||||||||
| Inventories | 42.97 | 51.43 | 53.75 | 98.09 | 150.11 | 132.81 | 157.91 | 187.76 | 223.25 | 265.45 |
| Inventories (%) | ||||||||||
| Accounts Payable | 16.83 | 19.02 | 21.98 | 32.44 | 47.84 | 47.17 | 56.08 | 66.68 | 79.29 | 94.28 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -5.53 | -7.51 | -11.44 | -8.83 | -15.65 | -17 | -20.21 | -24.04 | -28.58 | -33.98 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 140.93 |
|---|---|
| Beta | 0.817 |
| Diluted Shares Outstanding | 15.81 |
| Cost of Debt | |
| Tax Rate | 27.42 |
| After-tax Cost of Debt | 1.21% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.494 |
| Total Debt | 325.32 |
| Total Equity | 2,227.68 |
| Total Capital | 2,553 |
| Debt Weighting | 12.74 |
| Equity Weighting | 87.26 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 326.22 | 350.15 | 385.87 | 419.20 | 626.43 | 744.85 | 885.64 | 1,053.04 | 1,252.09 | 1,488.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 20.93 | 76.24 | 74.84 | 76.54 | 132.87 | 129.68 | 154.19 | 183.34 | 218 | 259.20 |
| EBIT | 6 | 62.40 | 59.99 | 53.50 | 95.98 | 94.29 | 112.11 | 133.30 | 158.50 | 188.46 |
| Tax Rate | 124.63% | 25.82% | 20.35% | 21.19% | 27.42% | 43.88% | 43.88% | 43.88% | 43.88% | 43.88% |
| EBIAT | -1.48 | 46.29 | 47.78 | 42.17 | 69.66 | 52.91 | 62.91 | 74.81 | 88.95 | 105.76 |
| Depreciation | 14.93 | 13.84 | 14.85 | 23.04 | 36.89 | 35.39 | 42.09 | 50.04 | 59.50 | 70.75 |
| Accounts Receivable | - | -2.75 | -8.74 | -21.81 | -26.11 | -26.75 | -28.27 | -33.61 | -39.97 | -47.52 |
| Inventories | - | -8.46 | -2.32 | -44.33 | -52.03 | 17.30 | -25.10 | -29.85 | -35.49 | -42.20 |
| Accounts Payable | - | 2.20 | 2.95 | 10.47 | 15.39 | -0.67 | 8.92 | 10.60 | 12.60 | 14.99 |
| Capital Expenditure | -5.53 | -7.51 | -11.44 | -8.83 | -15.65 | -17 | -20.21 | -24.04 | -28.58 | -33.98 |
| UFCF | 7.92 | 43.60 | 43.08 | 0.69 | 28.15 | 61.19 | 40.33 | 47.95 | 57.01 | 67.79 |
| WACC | ||||||||||
| PV UFCF | 57.35 | 35.43 | 39.48 | 44 | 49.04 | |||||
| SUM PV UFCF | 225.31 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.69 |
| Free cash flow (t + 1) | 69.14 |
| Terminal Value | 1,474.31 |
| Present Value of Terminal Value | 1,066.52 |
Intrinsic Value
| Enterprise Value | 1,291.83 |
|---|---|
| Net Debt | 308.70 |
| Equity Value | 983.13 |
| Shares Outstanding | 15.81 |
| Equity Value Per Share | 62.20 |