CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis
USA - NASDAQ:CSWC - US1405011073 - Common Stock
20.77 USD
+0.4 (+1.96%)
20.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CSWC. CSWC was compared to 237 industry peers in the Capital Markets industry. CSWC has an average financial health and profitability rating. 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.
CSWC had a negative operating cash flow in the past year.
CSWC had positive earnings in each of the past 5 years.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
The Return On Assets of CSWC (4.44%) is better than 65.82% of its industry peers.
With a Return On Equity value of 9.11%, CSWC perfoms like the industry average, outperforming 52.32% of the companies in the same industry.
CSWC's Return On Invested Capital of 5.15% is fine compared to the rest of the industry. CSWC outperforms 63.71% of its industry peers.
CSWC had an Average Return On Invested Capital over the past 3 years of 5.02%. This is below the industry average of 7.63%.
The last Return On Invested Capital (5.15%) for CSWC is above the 3 year average (5.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 9.11% | ||
| ROIC | 5.15% |
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's Profit Margin of 39.95% is amongst the best of the industry. CSWC outperforms 83.54% of its industry peers.
In the last couple of years the Profit Margin of CSWC has declined.
CSWC has a better Operating Margin (58.31%) than 94.09% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
With a decent Gross Margin value of 72.36%, CSWC is doing good in the industry, outperforming 79.32% of the companies in the same industry.
In the last couple of years the Gross Margin of CSWC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.31% | ||
| PM (TTM) | 39.95% | ||
| GM | 72.36% |
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
The number of shares outstanding for CSWC has been increased compared to 1 year ago.
The number of shares outstanding for CSWC has been increased compared to 5 years ago.
Compared to 1 year ago, CSWC has a worse debt to assets ratio.
2.2 Solvency
CSWC has an Altman-Z score of 0.99. This is a bad value and indicates that CSWC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CSWC (0.99) is comparable to the rest of the industry.
CSWC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSWC (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.88 indicates that CSWC has no problem at all paying its short term obligations.
CSWC has a better Current ratio (3.88) than 83.97% of its industry peers.
CSWC has a Quick Ratio of 3.88. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
CSWC has a Quick ratio of 3.88. This is amongst the best in the industry. CSWC outperforms 83.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
CSWC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.08%.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
Looking at the last year, CSWC shows a quite strong growth in Revenue. The Revenue has grown by 14.77% in the last year.
The Revenue has been growing by 26.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-12.08%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-13.64%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%16.92%
3.2 Future
CSWC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.20% yearly.
Based on estimates for the next years, CSWC will show a quite strong growth in Revenue. The Revenue will grow by 11.36% on average per year.
EPS Next Y-5.84%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue Next Year11.98%
Revenue Next 2Y11.36%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.91, which indicates a very decent valuation of CSWC.
76.37% of the companies in the same industry are more expensive than CSWC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.06. CSWC is valued rather cheaply when compared to this.
CSWC is valuated reasonably with a Price/Forward Earnings ratio of 8.88.
77.64% of the companies in the same industry are more expensive than CSWC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CSWC to the average of the S&P500 Index (32.73), we can say CSWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWC is valued a bit cheaper than the industry average as 78.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.88 |
4.3 Compensation for Growth
CSWC has a very decent profitability rating, which may justify a higher PE ratio.
CSWC's earnings are expected to decrease with -3.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.96
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 11.39%, which is a nice return.
Compared to an average industry Dividend Yield of 8.49, CSWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
5.2 History
The dividend of CSWC decreases each year by -2.03%.
CSWC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CSWC decreased in the last 3 years.
Dividend Growth(5Y)-2.03%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
156.98% 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.
DP156.98%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
20.77
+0.4 (+1.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners33.39%
Inst Owner Change-44.38%
Ins Owners3.04%
Ins Owner Change4.57%
Market Cap1.16B
Revenue(TTM)204.44M
Net Income(TTM)83.51M
Analysts77.14
Price Target24.03 (15.7%)
Short Float %5.73%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.39% |
Yearly Dividend2.56
Dividend Growth(5Y)-2.03%
DP156.98%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.85%
Min EPS beat(2)-12.51%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-3.73%
Min EPS beat(4)-12.51%
Max EPS beat(4)-0.58%
EPS beat(8)2
Avg EPS beat(8)-1.63%
EPS beat(12)4
Avg EPS beat(12)-0.32%
EPS beat(16)7
Avg EPS beat(16)-0.07%
Revenue beat(2)1
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.58%
Revenue beat(8)5
Avg Revenue beat(8)0.51%
Revenue beat(12)8
Avg Revenue beat(12)0.3%
Revenue beat(16)10
Avg Revenue beat(16)0.32%
PT rev (1m)-0.79%
PT rev (3m)1.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.36%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.88 | ||
| P/S | 5.53 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 15.88 |
EPS(TTM)2.33
EY11.22%
EPS(NY)2.34
Fwd EY11.27%
FCF(TTM)-3.95
FCFYN/A
OCF(TTM)-3.92
OCFYN/A
SpS3.76
BVpS16.47
TBVpS16.47
PEG (NY)N/A
PEG (5Y)0.96
Graham Number29.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.44% | ||
| ROE | 9.11% | ||
| ROCE | 6.52% | ||
| ROIC | 5.15% | ||
| ROICexc | 5.28% | ||
| ROICexgc | 5.41% | ||
| OM | 58.31% | ||
| PM (TTM) | 39.95% | ||
| GM | 72.36% | ||
| 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%
ROICexgc growth 3Y13.4%
ROICexgc 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 | 1.01 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.23 | ||
| Cap/Depr | 28.42% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 0.99 |
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)-12.08%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-13.64%
EPS Next Y-5.84%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%16.92%
Revenue Next Year11.98%
Revenue Next 2Y11.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y3.96%
EBIT growth 3Y40.64%
EBIT growth 5Y31.79%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2.34%
OCF growth 3YN/A
OCF growth 5YN/A
CAPITAL SOUTHWEST CORP / CSWC FAQ
Can you provide the ChartMill fundamental rating for CAPITAL SOUTHWEST CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CSWC.
What is the valuation status for CSWC stock?
ChartMill assigns a valuation rating of 5 / 10 to CAPITAL SOUTHWEST CORP (CSWC). This can be considered as Fairly Valued.
Can you provide the profitability details for CAPITAL SOUTHWEST CORP?
CAPITAL SOUTHWEST CORP (CSWC) has a profitability rating of 6 / 10.
What is the valuation of CAPITAL SOUTHWEST CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAPITAL SOUTHWEST CORP (CSWC) is 8.91 and the Price/Book (PB) ratio is 1.26.
Can you provide the financial health for CSWC stock?
The financial health rating of CAPITAL SOUTHWEST CORP (CSWC) is 4 / 10.