CAPITAL SOUTHWEST CORP (CSWC) Fundamental Analysis & Valuation

NASDAQ:CSWC • US1405011073

Current stock price

21.63 USD
-0.42 (-1.9%)
At close:
21.67 USD
+0.04 (+0.18%)
After Hours:

This CSWC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. CSWC Profitability Analysis

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.
CSWC Yearly Net Income VS EBIT VS OCF VS FCFCSWC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M -200M

1.2 Ratios

  • The Return On Assets of CSWC (4.87%) is better than 67.36% of its industry peers.
  • The Return On Equity of CSWC (10.35%) is better than 61.98% of its industry peers.
  • CSWC's Return On Invested Capital of 4.87% is fine compared to the rest of the industry. CSWC outperforms 69.01% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CSWC is below the industry average of 7.14%.
Industry RankSector Rank
ROA 4.87%
ROE 10.35%
ROIC 4.87%
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
CSWC Yearly ROA, ROE, ROICCSWC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

  • CSWC has a better Profit Margin (45.46%) than 88.02% of its industry peers.
  • In the last couple of years the Profit Margin of CSWC has declined.
  • CSWC's Operating Margin of 57.26% is amongst the best of the industry. CSWC outperforms 93.80% of its industry peers.
  • CSWC's Operating Margin has improved in the last couple of years.
  • CSWC has a better Gross Margin (71.53%) than 78.93% of its industry peers.
  • CSWC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 57.26%
PM (TTM) 45.46%
GM 71.53%
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%
CSWC Yearly Profit, Operating, Gross MarginsCSWC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 100

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4

2. CSWC Health Analysis

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
  • CSWC has a worse debt/assets ratio than last year.
CSWC Yearly Shares OutstandingCSWC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
CSWC Yearly Total Debt VS Total AssetsCSWC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • Based on the Altman-Z score of 0.99, we must say that CSWC is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.99, CSWC is in line with its industry, outperforming 55.37% of the companies in the same industry.
  • A Debt/Equity ratio of 1.08 is on the high side and indicates that CSWC has dependencies on debt financing.
  • With a Debt to Equity ratio value of 1.08, CSWC perfoms like the industry average, outperforming 47.52% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACCN/A
WACCN/A
CSWC Yearly LT Debt VS Equity VS FCFCSWC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 5.70 indicates that CSWC has no problem at all paying its short term obligations.
  • CSWC has a better Current ratio (5.70) than 89.67% of its industry peers.
  • CSWC has a Quick Ratio of 5.70. 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 5.70, CSWC belongs to the top of the industry, outperforming 89.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.7
Quick Ratio 5.7
CSWC Yearly Current Assets VS Current LiabilitesCSWC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CSWC Growth Analysis

3.1 Past

  • CSWC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.30%.
  • CSWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.26% yearly.
  • CSWC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.25%.
  • 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)-9.3%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%1.59%
Revenue 1Y (TTM)14.25%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%18.23%

3.2 Future

  • The Earnings Per Share is expected to decrease by -3.16% on average over the next years.
  • The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-1.01%
EPS Next 2Y-3.76%
EPS Next 3Y-3.16%
EPS Next 5YN/A
Revenue Next Year14.16%
Revenue Next 2Y12.19%
Revenue Next 3Y2%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CSWC Yearly Revenue VS EstimatesCSWC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 50M 100M 150M 200M 250M
CSWC Yearly EPS VS EstimatesCSWC Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

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5

4. CSWC Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.24, 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 67.77% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.23, CSWC is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.49, the valuation of CSWC can be described as reasonable.
  • 69.42% of the companies in the same industry are more expensive than CSWC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. CSWC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.24
Fwd PE 9.49
CSWC Price Earnings VS Forward Price EarningsCSWC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CSWC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSWC is cheaper than 73.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.24
CSWC Per share dataCSWC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 -3.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-3.76%
EPS Next 3Y-3.16%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. CSWC Dividend Analysis

5.1 Amount

  • CSWC has a Yearly Dividend Yield of 10.53%, which is a nice return.
  • Compared to an average industry Dividend Yield of 6.91, CSWC pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, CSWC pays a better dividend.
Industry RankSector Rank
Dividend Yield 10.53%

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
CSWC Yearly Dividends per shareCSWC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 138.14% 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.
DP138.14%
EPS Next 2Y-3.76%
EPS Next 3Y-3.16%
CSWC Yearly Income VS Free CF VS DividendCSWC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M -100M -200M
CSWC Dividend Payout.CSWC Dividend Payout, showing the Payout Ratio.CSWC Dividend Payout.PayoutRetained Earnings

More info and screens

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CSWC Fundamentals: All Metrics, Ratios and Statistics

CAPITAL SOUTHWEST CORP

NASDAQ:CSWC (3/20/2026, 8:00:01 PM)

After market: 21.67 +0.04 (+0.18%)

21.63

-0.42 (-1.9%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-02
Earnings (Next)05-12
Inst Owners26.87%
Inst Owner Change-7.3%
Ins Owners2.82%
Ins Owner Change0.12%
Market Cap1.30B
Revenue(TTM)226.75M
Net Income(TTM)103.08M
Analysts78.57
Price Target24.91 (15.16%)
Short Float %6.91%
Short Ratio6.04
Dividend
Industry RankSector Rank
Dividend Yield 10.53%
Yearly Dividend2.56
Dividend Growth(5Y)-2.03%
DP138.14%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-15
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.76%
Min EPS beat(2)-1.38%
Max EPS beat(2)10.91%
EPS beat(4)1
Avg EPS beat(4)-1.05%
Min EPS beat(4)-12.51%
Max EPS beat(4)10.91%
EPS beat(8)1
Avg EPS beat(8)-1.4%
EPS beat(12)4
Avg EPS beat(12)-0.07%
EPS beat(16)7
Avg EPS beat(16)0.45%
Revenue beat(2)1
Avg Revenue beat(2)2.35%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)4.84%
Revenue beat(4)2
Avg Revenue beat(4)0.65%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)4.84%
Revenue beat(8)4
Avg Revenue beat(8)0.41%
Revenue beat(12)7
Avg Revenue beat(12)0.03%
Revenue beat(16)9
Avg Revenue beat(16)0.15%
PT rev (1m)3.27%
PT rev (3m)4.54%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)0.3%
EPS NY rev (1m)3.09%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)3.71%
Revenue NQ rev (3m)4.91%
Revenue NY rev (1m)2.51%
Revenue NY rev (3m)2.67%
Valuation
Industry RankSector Rank
PE 9.24
Fwd PE 9.49
P/S 5.74
P/FCF N/A
P/OCF N/A
P/B 1.31
P/tB 1.31
EV/EBITDA 17.24
EPS(TTM)2.34
EY10.82%
EPS(NY)2.28
Fwd EY10.53%
FCF(TTM)-3.22
FCFYN/A
OCF(TTM)-3.21
OCFYN/A
SpS3.77
BVpS16.55
TBVpS16.55
PEG (NY)N/A
PEG (5Y)1
Graham Number29.52
Profitability
Industry RankSector Rank
ROA 4.87%
ROE 10.35%
ROCE 6.16%
ROIC 4.87%
ROICexc 4.97%
ROICexgc 5.09%
OM 57.26%
PM (TTM) 45.46%
GM 71.53%
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-Score4
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF N/A
Debt/EBITDA 7.84
Cap/Depr 9.2%
Cap/Sales 0.28%
Interest Coverage 2.35
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.7
Quick Ratio 5.7
Altman-Z 0.99
F-Score4
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)-9.3%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%1.59%
EPS Next Y-1.01%
EPS Next 2Y-3.76%
EPS Next 3Y-3.16%
EPS Next 5YN/A
Revenue 1Y (TTM)14.25%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%18.23%
Revenue Next Year14.16%
Revenue Next 2Y12.19%
Revenue Next 3Y2%
Revenue Next 5YN/A
EBIT growth 1Y6.63%
EBIT growth 3Y40.64%
EBIT growth 5Y31.79%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-61.04%
OCF growth 3YN/A
OCF growth 5YN/A

CAPITAL SOUTHWEST CORP / CSWC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CAPITAL SOUTHWEST CORP?

ChartMill assigns a fundamental rating of 5 / 10 to CSWC.


Can you provide the valuation status for CAPITAL SOUTHWEST CORP?

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.


How financially healthy is CAPITAL SOUTHWEST CORP?

The financial health rating of CAPITAL SOUTHWEST CORP (CSWC) is 4 / 10.


How sustainable is the dividend of CAPITAL SOUTHWEST CORP (CSWC) stock?

The dividend rating of CAPITAL SOUTHWEST CORP (CSWC) is 5 / 10 and the dividend payout ratio is 138.14%.