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

CSW Industrials, Inc. and The Middleby Corporation are both Specialty Industrial Machinery companies. CSW Industrials, Inc. and The Middleby Corporation are of similar size ($4.9B and $4.8B). The Middleby Corporation has negative trailing earnings, so its P/E is not meaningful; CSW Industrials, Inc. trades at 40.5×. CSW Industrials, Inc. grew revenue faster over the last twelve months: 27.7% against 22.8%. CSW Industrials, Inc. has the higher net margin (10.3% vs −13.9%) and the lower return on invested capital (6.43% vs 8.97%). Both pay a dividend; CSW Industrials, Inc. yields more (0.34% vs 0.23%). Across the 22 metrics below, CSW Industrials, Inc. leads on 12 and The Middleby Corporation on 10.

Valuation

Metric CSW MIDD Specialty Industrial Machinery median
P/E 40.55 n/m 29.62
P/S 4.14 1.44 2.77
P/B 4.51 2.21 3.04
Price to free cash flow 33.54 10.15 23.81
EV/EBITDA 21.05 9.81 16.05
EV/Sales 4.83 1.98 2.94
Earnings yield 2.47% (8.60%) 3.08%
Free cash flow yield 2.98% 9.86% 3.12%

Profitability

Metric CSW MIDD Specialty Industrial Machinery median
Gross margin 42.38% 38.40% 35.90%
Operating margin 16.55% 17.07% 11.22%
Net margin 10.34% (13.91%) 7.80%
Free cash flow margin 12.36% 14.22% 9.51%
Return on equity 11.07% (16.16%) 11.10%
Return on assets 6.25% (7.42%) 4.63%
Return on invested capital 6.43% 8.97% 5.37%

Growth

Metric CSW MIDD Specialty Industrial Machinery median
Revenue growth (TTM) 27.71% 22.83% 6.45%
EPS growth (last fiscal year) (20.05%) (167.34%) —
Revenue growth, 5-year CAGR 20.89% 4.96% 8.31%
Net income growth, 5-year CAGR 22.82% 0.00% 5.04%

Health

Metric CSW MIDD Specialty Industrial Machinery median
Debt to equity 0.80 0.90 0.35
Current ratio 2.70 1.99 2.11
Net debt to EBITDA 3.53 2.87 1.32

Dividend

Metric CSW MIDD Specialty Industrial Machinery median
Dividend yield 0.34% 0.23% 1.12%
Payout ratio 0.11 0.00 0.17

Size

Metric CSW MIDD Specialty Industrial Machinery median
Market cap 4.80b 4.89b 1.97b

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