CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis
NASDAQ:CSWC - Nasdaq - US1405011073 - Common Stock - Currency: USD
CSWC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. Both the profitability and the financial health of CSWC get a neutral evaluation. Nothing too spectacular is happening here. CSWC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSWC was profitable.
In the past year CSWC has reported a negative cash flow from operations.
In the past 5 years CSWC has always been profitable.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.75%, CSWC is in the better half of the industry, outperforming 62.23% of the companies in the same industry.
With a Return On Equity value of 7.98%, CSWC perfoms like the industry average, outperforming 50.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.08%, CSWC is in the better half of the industry, outperforming 62.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSWC is below the industry average of 7.84%.
The 3 year average ROIC (5.02%) for CSWC is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 7.98% | ||
| ROIC | 5.08% |
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
1.3 Margins
CSWC has a better Profit Margin (34.51%) than 78.97% of its industry peers.
In the last couple of years the Profit Margin of CSWC has declined.
CSWC has a Operating Margin of 58.92%. This is amongst the best in the industry. CSWC outperforms 93.99% of its industry peers.
CSWC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 73.12%, CSWC is in the better half of the industry, outperforming 77.68% of the companies in the same industry.
CSWC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.92% | ||
| PM (TTM) | 34.51% | ||
| GM | 73.12% |
OM growth 3Y3.8%
OM growth 5Y3.81%
PM growth 3Y-12.81%
PM growth 5YN/A
GM growth 3Y-1.19%
GM growth 5Y-0.38%
2. Health
2.1 Basic Checks
CSWC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CSWC has more shares outstanding
Compared to 1 year ago, CSWC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that CSWC is in the distress zone and has some risk of bankruptcy.
CSWC has a Altman-Z score of 1.02. This is comparable to the rest of the industry: CSWC outperforms 52.79% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that CSWC has dependencies on debt financing.
CSWC's Debt to Equity ratio of 1.08 is in line compared to the rest of the industry. CSWC outperforms 46.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CSWC has a Current Ratio of 5.19. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
CSWC's Current ratio of 5.19 is amongst the best of the industry. CSWC outperforms 87.12% of its industry peers.
A Quick Ratio of 5.19 indicates that CSWC has no problem at all paying its short term obligations.
The Quick ratio of CSWC (5.19) is better than 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.19 | ||
| Quick Ratio | 5.19 |
3. Growth
3.1 Past
The earnings per share for CSWC have decreased by -8.89% in the last year.
Measured over the past years, CSWC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.26% on average per year.
The Revenue has grown by 14.77% in the past year. This is quite good.
Measured over the past years, CSWC shows a very strong growth in Revenue. The Revenue has been growing by 26.95% on average per year.
EPS 1Y (TTM)-8.89%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%12.87%
3.2 Future
Based on estimates for the next years, CSWC will show a decrease in Earnings Per Share. The EPS will decrease by -1.25% on average per year.
Based on estimates for the next years, CSWC will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.
EPS Next Y-2.16%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
EPS Next 5YN/A
Revenue Next Year10.45%
Revenue Next 2Y11.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.44, the valuation of CSWC can be described as reasonable.
78.54% of the companies in the same industry are more expensive than CSWC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CSWC is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.65, the valuation of CSWC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 75.97% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CSWC to the average of the S&P500 Index (21.76), we can say CSWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 78.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
The decent profitability rating of CSWC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 20.05%, CSWC is a good candidate for dividend investing.
CSWC's Dividend Yield is rather good when compared to the industry average which is at 8.12. CSWC pays more dividend than 97.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.05% |
5.2 History
The dividend of CSWC decreases each year by -2.03%.
CSWC has been paying a dividend for at least 10 years, so it has a reliable track record.
CSWC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-2.03%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
177.56% of the earnings are spent on dividend by CSWC. This is not a sustainable payout ratio.
The Dividend Rate of CSWC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP177.56%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
23.23
+0.09 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners33.12%
Inst Owner Change0%
Ins Owners2.79%
Ins Owner Change4.32%
Market Cap1.27B
Analysts80
Price Target22.95 (-1.21%)
Short Float %4.01%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 20.05% |
Yearly Dividend2.56
Dividend Growth(5Y)-2.03%
DP177.56%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.57%
Min EPS beat(2)-12.51%
Max EPS beat(2)-0.63%
EPS beat(4)0
Avg EPS beat(4)-4.52%
Min EPS beat(4)-12.51%
Max EPS beat(4)-0.58%
EPS beat(8)2
Avg EPS beat(8)-1.6%
EPS beat(12)5
Avg EPS beat(12)-0.21%
EPS beat(16)7
Avg EPS beat(16)-0.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)7
Avg Revenue beat(12)0.13%
Revenue beat(16)9
Avg Revenue beat(16)0.24%
PT rev (1m)-4.55%
PT rev (3m)-6.25%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-3.93%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)-1.3%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 9.65 | ||
| P/S | 6.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)2.46
EY10.59%
EPS(NY)2.41
Fwd EY10.36%
FCF(TTM)-4.08
FCFYN/A
OCF(TTM)-4.05
OCFYN/A
SpS3.81
BVpS16.45
TBVpS16.45
PEG (NY)N/A
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 7.98% | ||
| ROCE | 6.43% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.2% | ||
| ROICexgc | 5.33% | ||
| OM | 58.92% | ||
| PM (TTM) | 34.51% | ||
| GM | 73.12% | ||
| FCFM | N/A |
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
ROICexc(3y)5.13%
ROICexc(5y)4.56%
ROICexgc(3y)5.25%
ROICexgc(5y)4.67%
ROCE(3y)6.36%
ROCE(5y)5.64%
ROICexcg growth 3Y13.4%
ROICexcg growth 5Y4.23%
ROICexc growth 3Y13.36%
ROICexc growth 5Y4.27%
OM growth 3Y3.8%
OM growth 5Y3.81%
PM growth 3Y-12.81%
PM growth 5YN/A
GM growth 3Y-1.19%
GM growth 5Y-0.38%
F-Score1
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.57 | ||
| Cap/Depr | 28.41% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5.19 | ||
| Quick Ratio | 5.19 | ||
| Altman-Z | 1.02 |
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)13.14%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.36%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.89%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-18.18%
EPS Next Y-2.16%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
EPS Next 5YN/A
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%12.87%
Revenue Next Year10.45%
Revenue Next 2Y11.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.56%
EBIT growth 3Y40.64%
EBIT growth 5Y31.79%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-16.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.26%
OCF growth 3YN/A
OCF growth 5YN/A