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FMP

CSW Industrials, Inc. (NASDAQ:CSWI) Financial Performance Analysis

  • CSW Industrials, Inc. (NASDAQ:CSWI) demonstrates strong capital efficiency with a ROIC to WACC ratio of 1.61, indicating effective use of capital to generate profits.
  • Hamilton Lane Incorporated (HLNE) leads in capital efficiency with a ROIC to WACC ratio of 4.43, significantly outperforming peers.
  • Equity Bancshares, Inc. (EQBK) and FRP Holdings, Inc. (FRPH) show concerns with ROIC to WACC ratios below 1, indicating returns below their cost of capital.

CSW Industrials, Inc. (NASDAQ:CSWI) is a diversified industrial growth company that provides niche, value-added products in the industrial, HVAC, and construction markets. The company focuses on delivering high-performance solutions that enhance safety, reliability, and efficiency. CSWI competes with other industrial companies like PC Connection, Inc. (CNXN), Hamilton Lane Incorporated (HLNE), Equity Bancshares, Inc. (EQBK), FRP Holdings, Inc. (FRPH), and Omega Flex, Inc. (OFLX).

CSWI's Return on Invested Capital (ROIC) is 12.64%, while its Weighted Average Cost of Capital (WACC) is 7.85%. This results in a ROIC to WACC ratio of 1.61, indicating that CSWI is generating returns significantly above its cost of capital. This suggests that the company is effectively using its capital to generate profits, which is a positive sign for investors.

In comparison, PC Connection, Inc. (CNXN) has a ROIC of 10.23% and a WACC of 7.28%, resulting in a ROIC to WACC ratio of 1.41. While CNXN is also generating returns above its cost of capital, its ratio is lower than CSWI's, indicating slightly less efficiency in capital utilization.

Hamilton Lane Incorporated (HLNE) stands out with a remarkable ROIC of 43.18% and a WACC of 9.76%, leading to a ROIC to WACC ratio of 4.43. This high ratio suggests that HLNE is exceptionally efficient in generating returns on its invested capital, outperforming its peers, including CSWI, in this aspect.

On the other hand, Equity Bancshares, Inc. (EQBK) and FRP Holdings, Inc. (FRPH) show lower efficiency with ROIC to WACC ratios of 0.17 and 0.37, respectively. These figures indicate that both companies are generating returns below their cost of capital, which could be a concern for investors. Omega Flex, Inc. (OFLX) performs well with a ROIC to WACC ratio of 3.25, showcasing strong capital efficiency, though still trailing behind HLNE.