A forensic read on Csw Industrials, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.5
Distress distance
Clean
Earnings quality
6
Forensic signals
10.6%
ROE
23.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Csw Industrials, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.5, placing it in the Safe zone. 6 forensic signals were flagged in its latest SEC filings, led by inventory days.
What the filings flag
146d
FY2025→FY2026
Inventory days.Days inventory outstanding moved from 130 to 146 FY2025→FY2026 (against cost of goods sold; inventory +59% vs +30% in cost of sales). Inventory is outrunning what's being sold — a flag for softening demand or obsolescence risk ahead.
114% of FCF
FY2026
Shareholder returns.Returned $151M to shareholders (buybacks + dividends) in FY2026 — 114% of free cash flow. That is $18M (14%) more than free cash flow covered, and more than operating cash flow as well. The balance sheet covered it: cash fell $192M and total debt rose $869M over FY2026. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $15M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 125%.
+13.7%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +13.7% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $848.8M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by inventory up +59% against +30% in cost of sales and receivables up +35% against revenue +23%. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 3% of net operating assets, against an accruals ratio of 13.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
8.5%
FY2026
Return on invested capital.Return on invested capital is 8.5% in the latest fiscal year, against 12.8% in FY2024, having run between 8.5% and 14.5% across FY2024–FY2026 with no direction held. After-tax operating profit was $116M in FY2024 and $131M in FY2026, with operating income at 20.1% of revenue in FY2024, 20.6% in FY2025 and 15.6% in FY2026. The capital base behind it grew +71% across FY2024–FY2026, from $905M to $1.5B, while the return fell 4.3 points, so the dollars added over that window earned less than the 12.8% the older base was already earning.
+3.6%/yr
FY2024–FY2026
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2026 (+3.6%/yr). The count is growing — 15.6M shares in FY2024, 16.7M in FY2026: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~7%.
1.4% of rev
FY2026
Stock-based comp load.Stock-based compensation ran 1.4% of revenue and 11% of free cash flow in FY2026 — about $0.89 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 3.6% a year across FY2024–FY2026, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$1.08B
Revenue Growth YoY+23.3%
Revenue CAGR (2yr)+16.9%
Net Margin10.4%
Free Cash Flow$132.4M
Return on Equity10.6%
Debt / Equity0.83x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Csw Industrials, Inc.'s actual 10-K/10-Q/8-K filings?