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CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis

NASDAQ:CSWC - Nasdaq - US1405011073 - Common Stock - Currency: USD

20.6  +0.01 (+0.05%)

After market: 20.8 +0.2 (+0.97%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CSWC. CSWC was compared to 230 industry peers in the Capital Markets industry. CSWC has an average financial health and profitability rating. CSWC has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year CSWC was profitable.
In the past year CSWC has reported a negative cash flow from operations.
Of the past 5 years CSWC 4 years were profitable.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M

1.2 Ratios

With a Return On Assets value of 3.71%, CSWC perfoms like the industry average, outperforming 57.83% of the companies in the same industry.
The Return On Equity of CSWC (8.00%) is comparable to the rest of the industry.
CSWC's Return On Invested Capital of 5.40% is fine compared to the rest of the industry. CSWC outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSWC is below the industry average of 7.27%.
The last Return On Invested Capital (5.40%) for CSWC is above the 3 year average (4.51%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.71%
ROE 8%
ROIC 5.4%
ROA(3y)4.13%
ROA(5y)3.09%
ROE(3y)8.94%
ROE(5y)6.74%
ROIC(3y)4.51%
ROIC(5y)4.26%
CSWC Yearly ROA, ROE, ROICCSWC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15

1.3 Margins

CSWC has a Profit Margin of 33.49%. This is in the better half of the industry: CSWC outperforms 75.65% of its industry peers.
CSWC's Profit Margin has declined in the last couple of years.
CSWC has a better Operating Margin (61.35%) than 95.65% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
CSWC has a better Gross Margin (74.20%) than 80.00% of its industry peers.
CSWC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 61.35%
PM (TTM) 33.49%
GM 74.2%
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%
CSWC Yearly Profit, Operating, Gross MarginsCSWC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 200 300 400 500

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4

2. Health

2.1 Basic Checks

CSWC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CSWC Yearly Shares OutstandingCSWC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
CSWC Yearly Total Debt VS Total AssetsCSWC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

CSWC has an Altman-Z score of 0.98. This is a bad value and indicates that CSWC is not financially healthy and even has some risk of bankruptcy.
CSWC has a Altman-Z score (0.98) which 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.
CSWC has a Debt to Equity ratio of 1.11. This is comparable to the rest of the industry: CSWC outperforms 48.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF N/A
Altman-Z 0.98
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M 600M

2.3 Liquidity

A Current Ratio of 5.48 indicates that CSWC has no problem at all paying its short term obligations.
CSWC's Current ratio of 5.48 is amongst the best of the industry. CSWC outperforms 88.26% of its industry peers.
A Quick Ratio of 5.48 indicates that CSWC has no problem at all paying its short term obligations.
CSWC's Quick ratio of 5.48 is amongst the best of the industry. CSWC outperforms 88.26% of its industry peers.
Industry RankSector Rank
Current Ratio 5.48
Quick Ratio 5.48
CSWC Yearly Current Assets VS Current LiabilitesCSWC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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2

3. Growth

3.1 Past

The earnings per share for CSWC have decreased by -8.89% in the last year.
CSWC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.26% yearly.
EPS 1Y (TTM)-8.89%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.87%

3.2 Future

The Earnings Per Share is expected to decrease by -0.24% on average over the next years.
The Revenue is expected to grow by 12.44% on average over the next years. This is quite good.
EPS Next Y1.11%
EPS Next 2Y-0.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.35%
Revenue Next 2Y12.44%
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.
CSWC Yearly Revenue VS EstimatesCSWC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 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 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

CSWC is valuated reasonably with a Price/Earnings ratio of 8.37.
Based on the Price/Earnings ratio, CSWC is valued cheaply inside the industry as 81.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.82. CSWC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.28, the valuation of CSWC can be described as reasonable.
CSWC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CSWC is cheaper than 82.61% of the companies in the same industry.
CSWC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 8.37
Fwd PE 8.28
CSWC Price Earnings VS Forward Price EarningsCSWC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

CSWC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSWC is cheaper than 78.70% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.65
CSWC Per share dataCSWC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.53
PEG (5Y)0.9
EPS Next 2Y-0.24%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 11.20%, CSWC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.12, CSWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, CSWC pays a better dividend.
Industry RankSector Rank
Dividend Yield 11.2%

5.2 History

The dividend of CSWC has a limited annual growth rate of 0.11%.
CSWC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CSWC decreased in the last 3 years.
Dividend Growth(5Y)0.11%
Div Incr Years2
Div Non Decr Years2
CSWC Yearly Dividends per shareCSWC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

CSWC pays out 180.48% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of CSWC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP180.48%
EPS Next 2Y-0.24%
EPS Next 3YN/A
CSWC Yearly Income VS Free CF VS DividendCSWC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M
CSWC Dividend Payout.CSWC Dividend Payout, showing the Payout Ratio.CSWC Dividend Payout.PayoutRetained Earnings

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CAPITAL SOUTHWEST CORP

NASDAQ:CSWC (5/23/2025, 6:40:55 PM)

After market: 20.8 +0.2 (+0.97%)

20.6

+0.01 (+0.05%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)05-14 2025-05-14/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners31.5%
Inst Owner Change16.2%
Ins Owners4.14%
Ins Owner Change0.02%
Market Cap1.11B
Analysts77.14
Price Target24.04 (16.7%)
Short Float %4.34%
Short Ratio3.3
Dividend
Industry RankSector Rank
Dividend Yield 11.2%
Yearly Dividend2.54
Dividend Growth(5Y)0.11%
DP180.48%
Div Incr Years2
Div Non Decr Years2
Ex-Date06-13 2025-06-13 (0.06)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.61%
Min EPS beat(2)-0.63%
Max EPS beat(2)-0.58%
EPS beat(4)0
Avg EPS beat(4)-1.75%
Min EPS beat(4)-4.35%
Max EPS beat(4)-0.58%
EPS beat(8)3
Avg EPS beat(8)0.42%
EPS beat(12)6
Avg EPS beat(12)0.95%
EPS beat(16)7
Avg EPS beat(16)-0.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)-0.28%
Revenue beat(12)7
Avg Revenue beat(12)-0.01%
Revenue beat(16)9
Avg Revenue beat(16)0.13%
PT rev (1m)-1.79%
PT rev (3m)-6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.74%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.95%
Valuation
Industry RankSector Rank
PE 8.37
Fwd PE 8.28
P/S 5.57
P/FCF N/A
P/OCF N/A
P/B 1.33
P/tB 1.33
EV/EBITDA 15.65
EPS(TTM)2.46
EY11.94%
EPS(NY)2.49
Fwd EY12.07%
FCF(TTM)-4.88
FCFYN/A
OCF(TTM)-4.85
OCFYN/A
SpS3.7
BVpS15.46
TBVpS15.46
PEG (NY)7.53
PEG (5Y)0.9
Profitability
Industry RankSector Rank
ROA 3.71%
ROE 8%
ROCE 6.83%
ROIC 5.4%
ROICexc 5.51%
ROICexgc 5.65%
OM 61.35%
PM (TTM) 33.49%
GM 74.2%
FCFM N/A
ROA(3y)4.13%
ROA(5y)3.09%
ROE(3y)8.94%
ROE(5y)6.74%
ROIC(3y)4.51%
ROIC(5y)4.26%
ROICexc(3y)4.59%
ROICexc(5y)4.36%
ROICexgc(3y)4.69%
ROICexgc(5y)4.47%
ROCE(3y)5.7%
ROCE(5y)5.4%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y9.62%
ROICexc growth 3Y14.47%
ROICexc growth 5Y9.65%
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%
F-Score1
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.11
Debt/FCF N/A
Debt/EBITDA 7.24
Cap/Depr 23.84%
Cap/Sales 0.64%
Interest Coverage 2.75
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.48
Quick Ratio 5.48
Altman-Z 0.98
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)33.98%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.9%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.89%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-18.18%
EPS Next Y1.11%
EPS Next 2Y-0.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%12.87%
Revenue Next Year10.35%
Revenue Next 2Y12.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y17.15%
EBIT growth 3Y48.18%
EBIT growth 5Y34.94%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-9.87%
OCF growth 3YN/A
OCF growth 5YN/A