CAPITAL SOUTHWEST CORP (CSWC)
US1405011073 - Common Stock
Overall CSWC gets a fundamental rating of 6 out of 10. We evaluated CSWC against 210 industry peers in the Capital Markets industry. CSWC has only an average score on both its financial health and profitability. CSWC is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
CSWC had positive earnings in 4 of the past 5 years.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
CSWC has a better Return On Assets (6.16%) than 71.15% of its industry peers.
The Return On Equity of CSWC (12.22%) is better than 62.98% of its industry peers.
The Return On Invested Capital of CSWC (5.76%) is better than 64.90% of its industry peers.
CSWC had an Average Return On Invested Capital over the past 3 years of 3.85%. This is below the industry average of 8.34%.
The 3 year average ROIC (3.85%) for CSWC is below the current ROIC(5.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 12.22% | ||
| ROIC | 5.76% |
ROA(3y)4.65%
ROA(5y)3.22%
ROE(3y)10.3%
ROE(5y)6.57%
ROIC(3y)3.85%
ROIC(5y)3.85%
1.3 Margins
With an excellent Profit Margin value of 52.16%, CSWC belongs to the best of the industry, outperforming 87.98% 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 (61.53%) is better than 95.19% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
CSWC has a better Gross Margin (76.05%) than 77.88% of its industry peers.
In the last couple of years the Gross Margin of CSWC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.53% | ||
| PM (TTM) | 52.16% | ||
| GM | 76.05% |
OM growth 3Y5.78%
OM growth 5Y3.74%
PM growth 3YN/A
PM growth 5Y-24.35%
GM growth 3Y0.56%
GM growth 5Y-2.57%
2. Health
2.1 Basic Checks
Compared to 1 year ago, CSWC has more shares outstanding
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
Based on the Altman-Z score of 1.26, we must say that CSWC is in the distress zone and has some risk of bankruptcy.
CSWC has a Altman-Z score (1.26) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.94 indicates that CSWC is somewhat dependend on debt financing.
CSWC has a Debt to Equity ratio (0.94) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.26 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 6.09 indicates that CSWC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 6.09, CSWC belongs to the best of the industry, outperforming 89.42% of the companies in the same industry.
A Quick Ratio of 6.09 indicates that CSWC has no problem at all paying its short term obligations.
CSWC's Quick ratio of 6.09 is amongst the best of the industry. CSWC outperforms 89.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.09 | ||
| Quick Ratio | 6.09 |
3. Growth
3.1 Past
CSWC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.29%, which is quite impressive.
Measured over the past years, CSWC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.69% on average per year.
CSWC shows a strong growth in Revenue. In the last year, the Revenue has grown by 63.75%.
The Revenue has been growing by 27.72% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.29%
EPS 3Y13%
EPS 5Y17.69%
EPS growth Q2Q12.9%
Revenue 1Y (TTM)63.75%
Revenue growth 3Y24.38%
Revenue growth 5Y27.72%
Revenue growth Q2Q48.2%
3.2 Future
Based on estimates for the next years, CSWC will show a small growth in Earnings Per Share. The EPS will grow by 3.87% on average per year.
Based on estimates for the next years, CSWC will show a quite strong growth in Revenue. The Revenue will grow by 17.16% on average per year.
EPS Next Y20.36%
EPS Next 2Y8.28%
EPS Next 3Y3.87%
EPS Next 5YN/A
Revenue Next Year50.11%
Revenue Next 2Y28.59%
Revenue Next 3Y17.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
CSWC is valuated reasonably with a Price/Earnings ratio of 9.55.
Based on the Price/Earnings ratio, CSWC is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
CSWC is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.61 indicates a reasonable valuation of CSWC.
Based on the Price/Forward Earnings ratio, CSWC is valued a bit cheaper than 68.27% 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 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 70.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.19 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CSWC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.47
PEG (5Y)0.54
EPS Next 2Y8.28%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 9.04%, which is a nice return.
CSWC's Dividend Yield is a higher than the industry average which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.45, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
5.2 History
On average, the dividend of CSWC grows each year by 15.04%, which is quite nice.
CSWC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CSWC decreased recently.
Dividend Growth(5Y)15.04%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
CSWC pays out 108.34% of its income as dividend. This is not a sustainable payout ratio.
CSWC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP108.34%
EPS Next 2Y8.28%
EPS Next 3Y3.87%
CAPITAL SOUTHWEST CORP
NASDAQ:CSWC (4/23/2024, 4:20:01 PM)
After market: 25.66 -0.03 (-0.12%)25.69
+0.28 (+1.1%)
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 Cap1.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 9.61 | ||
| 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)0.47
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 12.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 61.53% | ||
| PM (TTM) | 52.16% | ||
| GM | 76.05% | ||
| 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 | 0.94 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.09 | ||
| Quick Ratio | 6.09 | ||
| 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)
Growth
EPS 1Y (TTM)26.29%
EPS 3Y13%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)63.75%
Revenue growth 3Y24.38%
Revenue growth 5Y
Revenue growth 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