Is CSW a high-quality business?

AlphaMadera's AlphaQuality grade scores CSW Industrials, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CSW compares to a Buffett-style quality bar.

What is CSW Industrials, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CSW based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CSW a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CSW - CSW Industrials, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $322.20 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B 74.6 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

B- 66.1

5yr Avg ROIC 9.0% 55/100
Operating Margin Trend +1.46 pp/yr 92/100

Capital Efficiency

Weight: 15%

C- 46.6

5yr Avg ROE 8.7% 54/100
5yr Share-Count CAGR 1.9% 34/100

Growth Quality

Weight: 25%

A- 85.7

5yr Revenue CAGR 8.8% 77/100
5yr EPS CAGR 33.4% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

A 87.7

5yr FCF Margin 13.6% 79/100
5yr FCF/NI Conversion 1.07x 99/100

Balance Sheet

Weight: 10%

A+ 96.8

Net Debt / EBITDA -0.70x 99/100
Interest Coverage (EBIT/Int) 670.58x 100/100
Altman Z-Score 3.65 90/100

Stability

Weight: 5%

C- 49.8

EPS Volatility (σ/μ) 0.65 18/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

Not held by any curated guru.

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.