CSW Industrials, Inc. (CSW) vs The Middleby Corporation (MIDD)

CSW Industrials, Inc. and The Middleby Corporation are both Specialty Industrial Machinery companies. The Middleby Corporation is the larger, with a market value of $5.9B against $4.5B — 1.3× the size. The Middleby Corporation has negative trailing earnings, so its P/E is not meaningful; CSW Industrials, Inc. trades at 35.2×. CSW Industrials, Inc. grew revenue faster over the last twelve months: 30.0% against 8.43%. CSW Industrials, Inc. has the higher net margin (10.2% vs −13.9%) and the lower return on invested capital (7.19% vs 8.97%). Across the 21 metrics below, CSW Industrials, Inc. leads on 11 and The Middleby Corporation on 10.

Valuation

Metric CSW MIDD Specialty Industrial Machinery median
P/E 35.20 n/m 25.64
P/S 3.59 1.74 2.81
P/B 4.02 2.67 2.99
Price to free cash flow 25.28 12.25 23.82
EV/EBITDA 17.85 11.30 15.15
EV/Sales 4.17 2.28 2.77
Earnings yield 2.84% (7.12%) 3.07%
Free cash flow yield 3.96% 8.16% 3.67%

Profitability

Metric CSW MIDD Specialty Industrial Machinery median
Gross margin 42.13% 38.40% 35.46%
Operating margin 16.93% 17.07% 10.04%
Net margin 10.17% (13.91%) 7.24%
Free cash flow margin 14.18% 14.22% 9.04%
Return on equity 11.35% (16.16%) 10.73%
Return on assets 6.63% (7.42%) 4.51%
Return on invested capital 7.19% 8.97% 5.00%

Growth

Metric CSW MIDD Specialty Industrial Machinery median
Revenue growth (TTM) 29.98% 8.43% 6.59%
EPS growth (last fiscal year) (20.05%) (167.34%) 5.97%
Revenue growth, 5-year CAGR 20.89% 4.96% 8.53%
Net income growth, 5-year CAGR 22.82% 0.00% 6.58%

Health

Metric CSW MIDD Specialty Industrial Machinery median
Debt to equity 0.68 0.90 0.33
Current ratio 2.35 1.99 2.08
Net debt to EBITDA 3.53 2.87 1.32

Dividend

Metric CSW MIDD Specialty Industrial Machinery median
Dividend yield 0.42% — 1.11%
Payout ratio 0.15 — 0.31

Size

Metric CSW MIDD Specialty Industrial Machinery median
Market cap 4.51b 5.89b 2.19b

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