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CSW Industrials (CSW Industrials) Graham Number : $19.22 (As of Dec. 2023)


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What is CSW Industrials Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-04-25), the stock price of CSW Industrials is $237.72. CSW Industrials's graham number for the quarter that ended in Dec. 2023 was $19.22. Therefore, CSW Industrials's Price to Graham Number ratio for today is 12.37.

The historical rank and industry rank for CSW Industrials's Graham Number or its related term are showing as below:

CSWI' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.58   Med: 2.7   Max: 29.11
Current: 12.37

During the past 11 years, the highest Price to Graham Number ratio of CSW Industrials was 29.11. The lowest was 1.58. And the median was 2.70.

CSWI's Price-to-Graham-Number is ranked worse than
98.46% of 2209 companies
in the Industrial Products industry
Industry Median: 1.51 vs CSWI: 12.37

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


CSW Industrials Graham Number Historical Data

The historical data trend for CSW Industrials's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CSW Industrials Graham Number Chart

CSW Industrials Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.71 25.17 - - -

CSW Industrials Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 5.71 18.04 19.22

Competitive Comparison of CSW Industrials's Graham Number

For the Specialty Industrial Machinery subindustry, CSW Industrials's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CSW Industrials's Price-to-Graham-Number Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, CSW Industrials's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where CSW Industrials's Price-to-Graham-Number falls into.



CSW Industrials Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

CSW Industrials's Graham Number for the fiscal year that ended in Mar. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*-2.324*6.2)
=N/A

CSW Industrials's Graham Number for the quarter that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*2.635*6.23)
=19.22

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


CSW Industrials  (NAS:CSWI) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

CSW Industrials's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Dec. 2023 )
=237.72/19.22
=12.37

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


CSW Industrials Graham Number Related Terms

Thank you for viewing the detailed overview of CSW Industrials's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


CSW Industrials (CSW Industrials) Business Description

Traded in Other Exchanges
Address
5420 Lyndon B. Johnson Freeway, Suite 500, Dallas, TX, USA, 75240
CSW Industrials Inc is a diversified industrial growth company with well-established, scalable platforms and domain expertise across three segments, Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The company's Contractor Solutions segment involves manufacturing efficient and performance-enhancing products for residential and commercial HVAC/R and plumbing applications, which are designed for professional end-use customers. Majority of the company revenue is generated from Contractor Solutions segment from US markets.
Executives
Joseph B Armes director, officer: Chief Executive Officer 5420 LYNDON B, JOHNSON FREEWAY, SUITE 500, DALLAS TX 75240
James E Perry officer: EVP, CFO 14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Luke Alverson officer: See Remarks 5400 LYNDON B. JOHNSON FRWY., STE. 1300, DALLAS TX 75240
Danielle Garde officer: SVP, Chief People Officer 5420 LYNDON B JOHNSON FWY #500, DALLAS TX 75240
Anne Motsenbocker director 1300 W SAM HOUSTON PARKWAY, SUITE 300, HOUSTON TX 77042
Bobby Griffin director 5420 LYNDON B JOHNSON FWY#500, DALLAS TX 75240
Michael R Gambrell director 2030 DOW CENTER, MIDLAND MI 48674
Storch Debra Von director 5420 LBJ FREEWAY, STE 500, DALLAS TX 75240
Robert M Swartz director 14911 QUORUM, SUITE 400, DALLAS TX 75254
Terry L Johnston director 2140 LAKE PARK BLVD., RICHARDSON TX 75080
Jay Kent Sweezey director 5420 LBJ FREEWAY, SUITE 500, DALLAS TX 75240
Greggory W Branning officer: EVP, CFO 1293 SOUTH MAIN STREET, AKRON OH 44301
Christopher J Mudd officer: See Remarks 5400 LBJ FREEWAY, SUITE 1300, DALLAS TX 75240
William F Quinn director
Craig James Foster officer: See Remarks 14612 LANDIS LAKES DRIVE, LOUISVILLE KY 40245