CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis
NASDAQ:CSWC - US1405011073 - Common Stock
23 USD
+0.16 (+0.7%)
23 USD
0 (0%)
Taking everything into account, CSWC scores 5 out of 10 in our fundamental rating. CSWC was compared to 239 industry peers in the Capital Markets industry. CSWC has an average financial health and profitability rating. CSWC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CSWC had positive earnings in the past year.
In the past year CSWC has reported a negative cash flow from operations.
CSWC had positive earnings in each of the past 5 years.
CSWC had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
CSWC has a better Return On Assets (4.44%) than 66.53% of its industry peers.
CSWC's Return On Equity of 9.11% is in line compared to the rest of the industry. CSWC outperforms 53.56% of its industry peers.
CSWC's Return On Invested Capital of 5.15% is fine compared to the rest of the industry. CSWC outperforms 64.02% 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 7.59%.
The 3 year average ROIC (5.02%) for CSWC is below the current ROIC(5.15%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 39.95%, CSWC belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
In the last couple of years the Profit Margin of CSWC has declined.
CSWC has a Operating Margin of 58.31%. This is amongst the best in the industry. CSWC outperforms 93.72% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
Looking at the Gross Margin, with a value of 72.36%, CSWC is in the better half of the industry, outperforming 79.08% 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.
Compared to 5 years ago, CSWC has more shares outstanding
CSWC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that CSWC is in the distress zone and has some risk of bankruptcy.
CSWC has a Altman-Z score of 1.07. This is comparable to the rest of the industry: CSWC outperforms 54.39% of its industry peers.
CSWC has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, CSWC is in line with its industry, outperforming 51.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CSWC has a Current Ratio of 3.88. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.88, CSWC belongs to the best of the industry, outperforming 84.10% of the companies in the same industry.
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's Quick ratio of 3.88 is amongst the best of the industry. CSWC outperforms 84.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The earnings per share for CSWC have decreased by -9.70% in the last year.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
The Revenue has grown by 10.52% 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)-9.7%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-6.35%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%8.94%
3.2 Future
The Earnings Per Share is expected to decrease by -2.14% on average over the next years.
CSWC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.82% yearly.
EPS Next Y-3.63%
EPS Next 2Y-2.3%
EPS Next 3Y-2.14%
EPS Next 5YN/A
Revenue Next Year11.54%
Revenue Next 2Y10.82%
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.
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
With a Price/Earnings ratio of 9.50, the valuation of CSWC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 77.82% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. CSWC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.79, which indicates a very decent valuation of CSWC.
Based on the Price/Forward Earnings ratio, CSWC is valued a bit cheaper than the industry average as 74.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, CSWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 9.79 |
4.2 Price Multiples
79.50% of the companies in the same industry are more expensive than CSWC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.77 |
4.3 Compensation for Growth
The decent profitability rating of CSWC may justify a higher PE ratio.
A cheap valuation may be justified as CSWC's earnings are expected to decrease with -2.14% in the coming years.
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-2.3%
EPS Next 3Y-2.14%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 10.15%, which is a nice return.
CSWC's Dividend Yield is a higher than the industry average which is at 7.91.
CSWC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
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.
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
CSWC pays out 156.98% of its income as dividend. This is not a sustainable payout ratio.
CSWC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP156.98%
EPS Next 2Y-2.3%
EPS Next 3Y-2.14%
23
+0.16 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners32.95%
Inst Owner Change76.45%
Ins Owners3.07%
Ins Owner Change4.57%
Market Cap1.28B
Analysts78.46
Price Target24.41 (6.13%)
Short Float %5.41%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.15% |
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)4.04%
PT rev (3m)1.52%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-4.69%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-1.12%
Revenue NY rev (1m)1.39%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 9.79 | ||
| P/S | 6.12 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.4 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 16.77 |
EPS(TTM)2.42
EY10.52%
EPS(NY)2.35
Fwd EY10.21%
FCF(TTM)-3.95
FCFYN/A
OCF(TTM)-3.92
OCFYN/A
SpS3.76
BVpS16.47
TBVpS16.47
PEG (NY)N/A
PEG (5Y)1.03
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%
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 | 1.01 | ||
| 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 | 1.07 |
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)-9.7%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-6.35%
EPS Next Y-3.63%
EPS Next 2Y-2.3%
EPS Next 3Y-2.14%
EPS Next 5YN/A
Revenue 1Y (TTM)10.52%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%8.94%
Revenue Next Year11.54%
Revenue Next 2Y10.82%
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