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CSW Industrials, Inc. (CSWI)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$201.42 - $534.31$307.99
Multi-Stage$135.88 - $148.57$142.11
Blended Fair Value$225.05
Current Price$303.00
Upside-25.73%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS12.39%5.80%0.870.710.630.570.480.490.000.000.000.02
YoY Growth--23.52%11.84%11.59%17.02%-0.58%0.00%0.00%0.00%-100.00%-96.38%
Dividend Yield--0.29%0.27%0.38%0.55%0.41%0.70%0.00%0.00%0.00%0.06%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)143.59
(-) Cash Dividends Paid (M)17.13
(=) Cash Retained (M)126.46
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)28.7217.9510.77
Cash Retained (M)126.46126.46126.46
(-) Cash Required (M)-28.72-17.95-10.77
(=) Excess Retained (M)97.74108.51115.69
(/) Shares Outstanding (M)16.7216.7216.72
(=) Excess Retained per Share5.846.496.92
LTM Dividend per Share1.021.021.02
(+) Excess Retained per Share5.846.496.92
(=) Adjusted Dividend6.877.517.94
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$201.42$307.99$534.31
Upside / Downside-33.53%1.65%76.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)143.59152.92162.86173.45184.72196.73202.63
Payout Ratio11.93%27.55%43.16%58.77%74.39%90.00%92.50%
Projected Dividends (M)17.1342.1270.29101.94137.41177.06187.44

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)38.2538.6138.97
Year 2 PV (M)57.9559.0660.17
Year 3 PV (M)76.3278.5180.74
Year 4 PV (M)93.4097.00100.69
Year 5 PV (M)109.28114.56120.04
PV of Terminal Value (M)1,897.131,988.762,083.90
Equity Value (M)2,272.332,376.492,484.51
Shares Outstanding (M)16.7216.7216.72
Fair Value$135.88$142.11$148.57
Upside / Downside-55.15%-53.10%-50.97%

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