CAPITAL SOUTHWEST CORP (CSWC)

US1405011073 - Common Stock

26.93  -0.01 (-0.04%)

Fundamental Rating

5

Taking everything into account, CSWC scores 5 out of 10 in our fundamental rating. CSWC was compared to 213 industry peers in the Capital Markets industry. CSWC has only an average score on both its financial health and profitability. CSWC has a correct valuation and a medium growth rate.



6

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 4 of the past 5 years.
CSWC had a negative operating cash flow in each of the past 5 years.

1.2 Ratios

CSWC's Return On Assets of 5.36% is fine compared to the rest of the industry. CSWC outperforms 63.33% of its industry peers.
CSWC's Return On Equity of 11.03% is in line compared to the rest of the industry. CSWC outperforms 57.62% of its industry peers.
With a decent Return On Invested Capital value of 5.64%, CSWC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CSWC is below the industry average of 7.99%.
The 3 year average ROIC (4.51%) for CSWC is below the current ROIC(5.64%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.36%
ROE 11.03%
ROIC 5.64%
ROA(3y)4.13%
ROA(5y)3.09%
ROE(3y)8.94%
ROE(5y)6.74%
ROIC(3y)4.51%
ROIC(5y)4.26%

1.3 Margins

Looking at the Profit Margin, with a value of 46.81%, CSWC belongs to the top of the industry, outperforming 84.29% of the companies in the same industry.
In the last couple of years the Profit Margin of CSWC has declined.
The Operating Margin of CSWC (62.28%) is better than 94.76% of its industry peers.
CSWC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 75.81%, CSWC is doing good in the industry, outperforming 75.71% of the companies in the same industry.
CSWC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 62.28%
PM (TTM) 46.81%
GM 75.81%
OM growth 3Y7.54%
OM growth 5Y5.44%
PM growth 3Y-14.44%
PM growth 5Y-6%
GM growth 3Y1.01%
GM growth 5Y-0.18%

4

2. Health

2.1 Basic Checks

CSWC has more shares outstanding than it did 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 an improved debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.24, we must say that CSWC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CSWC (1.24) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that CSWC has dependencies on debt financing.
CSWC has a Debt to Equity ratio (1.02) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF N/A
Altman-Z 1.24
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 9.76 indicates that CSWC has no problem at all paying its short term obligations.
CSWC's Current ratio of 9.76 is amongst the best of the industry. CSWC outperforms 94.76% of its industry peers.
CSWC has a Quick Ratio of 9.76. 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 9.76, CSWC belongs to the top of the industry, outperforming 94.76% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 9.76
Quick Ratio 9.76

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.42% over the past year.
CSWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
Looking at the last year, CSWC shows a very strong growth in Revenue. The Revenue has grown by 49.32%.
The Revenue has been growing by 27.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)18.42%
EPS 3Y17.37%
EPS 5Y13.71%
EPS Q2Q%1.54%
Revenue 1Y (TTM)49.32%
Revenue growth 3Y37.78%
Revenue growth 5Y27.97%
Sales Q2Q%40.85%

3.2 Future

The Earnings Per Share is expected to decrease by -0.02% on average over the next years.
The Revenue is expected to grow by 10.20% on average over the next years. This is quite good.
EPS Next Y0.17%
EPS Next 2Y-0.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.83%
Revenue Next 2Y10.2%
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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.97, the valuation of CSWC can be described as reasonable.
Based on the Price/Earnings ratio, CSWC is valued a bit cheaper than 73.33% 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 29.19.
The Price/Forward Earnings ratio is 9.96, which indicates a very decent valuation of CSWC.
66.19% of the companies in the same industry are more expensive than CSWC, based on the Price/Forward Earnings ratio.
CSWC is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.63, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.97
Fwd PE 9.96

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CSWC is valued a bit cheaper than the industry average as 70.95% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.94

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CSWC may justify a higher PE ratio.
PEG (NY)60.4
PEG (5Y)0.73
EPS Next 2Y-0.02%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

CSWC has a Yearly Dividend Yield of 8.39%, which is a nice return.
CSWC's Dividend Yield is a higher than the industry average which is at 7.39.
CSWC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 8.39%

5.2 History

The dividend of CSWC has a limited annual growth rate of 0.11%.
CSWC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CSWC decreased recently.
Dividend Growth(5Y)0.11%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

123.44% of the earnings are spent on dividend by CSWC. This is not a sustainable payout ratio.
CSWC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP123.44%
EPS Next 2Y-0.02%
EPS Next 3YN/A

CAPITAL SOUTHWEST CORP

NASDAQ:CSWC (7/16/2024, 2:26:07 PM)

26.93

-0.01 (-0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.21B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 8.39%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.97
Fwd PE 9.96
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)60.4
PEG (5Y)0.73
Profitability
Industry RankSector Rank
ROA 5.36%
ROE 11.03%
ROCE
ROIC
ROICexc
ROICexgc
OM 62.28%
PM (TTM) 46.81%
GM 75.81%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 9.76
Quick Ratio 9.76
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)18.42%
EPS 3Y17.37%
EPS 5Y
EPS Q2Q%
EPS Next Y0.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.32%
Revenue growth 3Y37.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y