generate some growth or do you continue to view it as an income stock. Would you buy, sell or hold the stock. If sell what would you buy instead?
CSW has no Street analysts, so no estimates. Q3 revenue grew 50% and adjusted earnings rose 91%. Results reflect some organic growth, the acquisition of ABG brands and good cost controls. Organic domestic case growth was 2%. International sales rebounded nicely with 44% sales growth. Certainly we would consider this a good quarter after several anemic results. The terms of the Nude acquisition have not been disclosed but it looks like a good tuck-in from a brand perspective. The new board member also looks fine. With earnings per share still below the levels of 10 years ago, we can still only see it as an income stock. It remains net debt-free, and produces good cash flow, but for now it is hard to see big capital gains. One quarter does not make a trend, but we think we would HOLD for now to see how the year further progresses. PRMW can be suggested as an alternative, with less income but more growth.