CAPITAL SOUTHWEST CORP (CSWC)
US1405011073 - Common Stock
We assign a fundamental rating of 5 out of 10 to CSWC. CSWC was compared to 219 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.
1. Profitability
1.1 Basic Checks
In the past year CSWC was profitable.
CSWC had a negative operating cash flow in the past year.
Of the past 5 years CSWC 4 years were profitable.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
CSWC's Return On Assets of 4.77% is fine compared to the rest of the industry. CSWC outperforms 61.40% of its industry peers.
CSWC has a Return On Equity (9.47%) which is comparable to the rest of the industry.
CSWC's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. CSWC outperforms 71.16% of its industry peers.
CSWC had an Average Return On Invested Capital over the past 3 years of 4.51%. This is significantly below the industry average of 17.77%.
The 3 year average ROIC (4.51%) for CSWC is below the current ROIC(6.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 9.47% | ||
| ROIC | 6.01% |
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
The Profit Margin of CSWC (38.92%) is better than 76.28% of its industry peers.
In the last couple of years the Profit Margin of CSWC has declined.
CSWC has a Operating Margin of 61.98%. This is amongst the best in the industry. CSWC outperforms 95.35% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
CSWC has a better Gross Margin (75.76%) than 77.21% of its industry peers.
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 | 61.98% | ||
| PM (TTM) | 38.92% | ||
| GM | 75.76% |
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%
2. Health
2.1 Basic Checks
The number of shares outstanding for CSWC has been increased compared to 1 year ago.
CSWC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CSWC has been reduced compared to a year ago.
2.2 Solvency
CSWC has an Altman-Z score of 1.28. 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 (1.28) which is in line with its industry peers.
CSWC has a Debt/Equity ratio of 0.95. This is a neutral value indicating CSWC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, CSWC perfoms like the industry average, outperforming 52.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CSWC has a Current Ratio of 8.15. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 8.15, CSWC belongs to the top of the industry, outperforming 89.77% of the companies in the same industry.
A Quick Ratio of 8.15 indicates that CSWC has no problem at all paying its short term obligations.
CSWC has a Quick ratio of 8.15. This is amongst the best in the industry. CSWC outperforms 89.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.15 | ||
| Quick Ratio | 8.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.59% 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.
The Revenue has grown by 37.93% in the past year. This is a very strong growth!
Measured over the past years, CSWC shows a very strong growth in Revenue. The Revenue has been growing by 27.97% on average per year.
EPS 1Y (TTM)24.59%
EPS 3Y17.37%
EPS 5Y13.71%
EPS Q2Q%52.31%
Revenue 1Y (TTM)37.93%
Revenue growth 3Y37.78%
Revenue growth 5Y27.97%
Sales Q2Q%27.24%
3.2 Future
CSWC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.72% yearly.
CSWC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.
EPS Next Y-2.28%
EPS Next 2Y-3.42%
EPS Next 3Y-4.72%
EPS Next 5YN/A
Revenue Next Year13.56%
Revenue Next 2Y7.86%
Revenue Next 3Y-0.79%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.48, which indicates a very decent valuation of CSWC.
76.74% of the companies in the same industry are more expensive than CSWC, based on the Price/Earnings ratio.
CSWC is valuated cheaply when we compare the Price/Earnings ratio to 31.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.24, 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 66.05% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.63. CSWC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CSWC is valued a bit cheaper than the industry average as 74.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.68 |
4.3 Compensation for Growth
A cheap valuation may be justified as CSWC's earnings are expected to decrease with -4.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y-3.42%
EPS Next 3Y-4.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.93%, CSWC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.55, CSWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.18, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
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
148.81% 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.
DP148.81%
EPS Next 2Y-3.42%
EPS Next 3Y-4.72%
CAPITAL SOUTHWEST CORP
NASDAQ:CSWC (10/22/2024, 1:29:03 PM)
25.78
-0.07 (-0.27%)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.48 | ||
| Fwd PE | 10.24 | ||
| 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)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 9.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 61.98% | ||
| PM (TTM) | 38.92% | ||
| GM | 75.76% | ||
| 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 Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.15 | ||
| Quick Ratio | 8.15 | ||
| 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)24.59%
EPS 3Y17.37%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)37.93%
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