CSW Industrials, Inc. (CSW) vs Gates Industrial Corporation PLC (GTES)

CSW Industrials, Inc. and Gates Industrial Corporation PLC are both Specialty Industrial Machinery companies. Gates Industrial Corporation PLC is the larger, with a market value of $6.7B against $4.8B — 1.4× the size. Gates Industrial Corporation PLC trades at the lower P/E: 18.9× against 40.5×. CSW Industrials, Inc. grew revenue faster over the last twelve months: 27.7% against 3.34%. Gates Industrial Corporation PLC has the higher net margin (10.4% vs 10.3%) and the lower return on invested capital (5.42% vs 6.43%). Across the 22 metrics below, Gates Industrial Corporation PLC leads on 14 and CSW Industrials, Inc. on 8.

Valuation

Metric CSW GTES Specialty Industrial Machinery median
P/E 40.55 18.92 29.62
P/S 4.14 1.94 2.77
P/B 4.51 1.75 3.04
Price to free cash flow 33.54 17.93 23.81
EV/EBITDA 21.05 12.06 16.05
EV/Sales 4.83 2.36 2.94
Earnings yield 2.47% 5.29% 3.08%
Free cash flow yield 2.98% 5.58% 3.12%

Profitability

Metric CSW GTES Specialty Industrial Machinery median
Gross margin 42.38% 39.69% 35.90%
Operating margin 16.55% 13.27% 11.22%
Net margin 10.34% 10.37% 7.80%
Free cash flow margin 12.36% 10.84% 9.51%
Return on equity 11.07% 9.69% 11.10%
Return on assets 6.25% 4.98% 4.63%
Return on invested capital 6.43% 5.42% 5.37%

Growth

Metric CSW GTES Specialty Industrial Machinery median
Revenue growth (TTM) 27.71% 3.34% 6.45%
EPS growth (last fiscal year) (20.05%) 29.73% —
Revenue growth, 5-year CAGR 20.89% 4.27% 8.31%
Net income growth, 5-year CAGR 22.82% 25.92% 5.04%

Health

Metric CSW GTES Specialty Industrial Machinery median
Debt to equity 0.80 0.59 0.35
Current ratio 2.70 3.24 2.11
Net debt to EBITDA 3.53 2.18 1.32

Dividend

Metric CSW GTES Specialty Industrial Machinery median
Dividend yield 0.34% — 1.12%
Payout ratio 0.11 0.00 0.17

Size

Metric CSW GTES Specialty Industrial Machinery median
Market cap 4.80b 6.65b 1.97b

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