CAPITAL SOUTHWEST CORP (CSWC)
US1405011073 - Common Stock
CSWC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 206 industry peers in the Capital Markets industry. CSWC has only an average score on both its financial health and profitability. CSWC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
CSWC had positive earnings in the past year.
CSWC had a negative operating cash flow in the past year.
CSWC had positive earnings in 4 of the past 5 years.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
CSWC has a Return On Assets of 4.77%. This is in the better half of the industry: CSWC outperforms 64.53% of its industry peers.
CSWC's Return On Equity of 10.27% is fine compared to the rest of the industry. CSWC outperforms 62.07% of its industry peers.
The Return On Invested Capital of CSWC (5.18%) is better than 65.02% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSWC is significantly below the industry average of 9.52%.
The last Return On Invested Capital (5.18%) for CSWC is above the 3 year average (3.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 10.27% | ||
| ROIC | 5.18% |
ROA(3y)4.65%
ROA(5y)3.22%
ROE(3y)10.3%
ROE(5y)6.57%
ROIC(3y)3.85%
ROIC(5y)3.85%
1.3 Margins
With an excellent Profit Margin value of 44.13%, CSWC belongs to the best of the industry, outperforming 83.74% of the companies in the same industry.
CSWC's Profit Margin has declined in the last couple of years.
CSWC has a better Operating Margin (60.64%) than 95.07% 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 75.89%, CSWC is doing good in the industry, outperforming 77.34% of the companies in the same industry.
In the last couple of years the Gross Margin of CSWC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.64% | ||
| PM (TTM) | 44.13% | ||
| GM | 75.89% |
OM growth 3Y5.78%
OM growth 5Y3.74%
PM growth 3YN/A
PM growth 5Y-24.35%
GM growth 3Y0.56%
GM growth 5Y-2.57%
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 an improved debt to assets ratio.
2.2 Solvency
CSWC has an Altman-Z score of 1.00. 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 (1.00) is comparable to the rest of the industry.
CSWC has a Debt/Equity ratio of 1.11. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CSWC (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 21.55 indicates that CSWC has no problem at all paying its short term obligations.
CSWC has a better Current ratio (21.55) than 98.03% of its industry peers.
CSWC has a Quick Ratio of 21.55. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 21.55, CSWC belongs to the top of the industry, outperforming 98.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 21.55 | ||
| Quick Ratio | 21.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.21% over the past year.
The Earnings Per Share has been growing by 17.69% on average over the past years. This is quite good.
Looking at the last year, CSWC shows a very strong growth in Revenue. The Revenue has grown by 65.19%.
The Revenue has been growing by 27.72% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.21%
EPS 3Y13%
EPS 5Y17.69%
EPS growth Q2Q32.69%
Revenue 1Y (TTM)65.19%
Revenue growth 3Y24.38%
Revenue growth 5Y27.72%
Revenue growth Q2Q59.63%
3.2 Future
CSWC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.20% yearly.
CSWC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.13% yearly.
EPS Next Y17.66%
EPS Next 2Y8.06%
EPS Next 3Y2.2%
EPS Next 5YN/A
Revenue Next Year44.85%
Revenue Next 2Y27.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.54, the valuation of CSWC can be described as reasonable.
CSWC's Price/Earnings ratio is a bit cheaper when compared to the industry. CSWC is cheaper than 74.88% of the companies in the same industry.
CSWC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.46.
A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of CSWC.
73.40% 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 (19.59), we can say CSWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWC is valued a bit cheaper than the industry average as 63.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CSWC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.48
PEG (5Y)0.48
EPS Next 2Y8.06%
EPS Next 3Y2.2%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 9.81%, which is a nice return.
CSWC's Dividend Yield is a higher than the industry average which is at 7.84.
Compared to an average S&P500 Dividend Yield of 2.63, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
5.2 History
The dividend of CSWC is nicely growing with an annual growth rate of 15.04%!
CSWC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)15.04%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CSWC pays out 130.11% of its income as dividend. This is not a sustainable payout ratio.
CSWC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP130.11%
EPS Next 2Y8.06%
EPS Next 3Y2.2%
CAPITAL SOUTHWEST CORP
NASDAQ:CSWC (11/29/2023, 4:20:00 PM)
After market: 22.3 0 (0%)22.3
+0.05 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-30 2023-10-30/amc
Earnings (Next)01-29 2024-01-29/amc
Inst Owners21.28%
Inst Owner Change3.9%
Ins Owners6.46%
Ins Owner Change6.33%
Market Cap890.88M
Analysts80
Price Target23.14 (3.77%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.81% |
Dividend Growth(5Y)15.04%
DP130.11%
Div Incr Years0
Div Non Decr Years0
Ex-Date12-14 2023-12-14 (0.06)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.35%
Min EPS beat(2)-0.97%
Max EPS beat(2)3.67%
EPS beat(4)3
Avg EPS beat(4)3.51%
Min EPS beat(4)-0.97%
Max EPS beat(4)7.72%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.01%
Max Revenue beat(2)2.13%
Revenue beat(4)4
Avg Revenue beat(4)2.14%
Min Revenue beat(4)0.01%
Max Revenue beat(4)5.45%
PT rev (1m)0%
PT rev (3m)5.22%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)2.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)2.89%
Revenue NQ rev (3m)7.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 8.38 | ||
| P/S | 5.82 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 16.61 |
EPS(TTM)2.61
EY11.7%
EPS(NY)2.66
Fwd EY11.94%
FCF(TTM)-5.91
FCFYN/A
OCF(TTM)-5.9
OCFYN/A
SpS3.83
BVpS16.47
TBVpS16.47
PEG (NY)0.48
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 10.27% | ||
| ROCE | 6.56% | ||
| ROIC | 5.18% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 5.42% | ||
| OM | 60.64% | ||
| PM (TTM) | 44.13% | ||
| GM | 75.89% | ||
| FCFM | N/A |
ROA(3y)4.65%
ROA(5y)3.22%
ROE(3y)10.3%
ROE(5y)6.57%
ROIC(3y)3.85%
ROIC(5y)3.85%
ROICexc(3y)3.94%
ROICexc(5y)3.94%
ROICexgc(3y)4.03%
ROICexgc(5y)4.03%
ROCE(3y)4.87%
ROCE(5y)4.87%
ROICexcg growth 3Y1.44%
ROICexcg growth 5Y5.63%
ROICexc growth 3Y1.6%
ROICexc growth 5Y5.91%
OM growth 3Y5.78%
OM growth 5Y3.74%
PM growth 3YN/A
PM growth 5Y-24.35%
GM growth 3Y0.56%
GM growth 5Y-2.57%
F-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.61 | ||
| Cap/Depr | 2.94% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 2.74 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 21.55 | ||
| Quick Ratio | 21.55 | ||
| Altman-Z | 1 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y (TTM)29.21%
EPS 3Y13%
EPS 5Y17.69%
EPS growth Q2Q32.69%
EPS Next Y17.66%
EPS Next 2Y8.06%
EPS Next 3Y2.2%
EPS Next 5YN/A
Revenue 1Y (TTM)65.19%
Revenue growth 3Y24.38%
Revenue growth 5Y27.72%
Revenue growth Q2Q59.63%
Revenue Next Year44.85%
Revenue Next 2Y27.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y80.48%
EBIT growth 3Y31.56%
EBIT growth 5Y32.49%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-88.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.27%
OCF growth 3YN/A
OCF growth 5YN/A