Q: Is this stock is investable at this time after its decline has reversed in few months? Thanks.
5i Research Answer:
CSW.A pays a dividend yield of 5.7%, has a fairly small market cap of $410.5M, and a good cash balance of $117M. It has only slightly grown its top line over the past 10 years, its margins and debt levels are OK, and it's priced well at 2.2X price to book and 18.4X P/E. Most of its free cash flows are directed to dividends, and while we think it is at a good valuation, we are not fans of its weak momentum, and we would prefer to wait until the stock has found a floor and sales momentum improves.