23.08 USD
-0.07 (-0.3%)
22.9596 USD
-0.12 (-0.52%)
CSWC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. Both the profitability and the financial health of CSWC get a neutral evaluation. Nothing too spectacular is happening here. CSWC has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years CSWC has always been profitable.
- In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.28%, CSWC is in the better half of the industry, outperforming 63.03% of the companies in the same industry.
- The Return On Equity of CSWC (9.13%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.94%, CSWC is in the better half of the industry, outperforming 63.87% of the companies in the same industry.
- CSWC had an Average Return On Invested Capital over the past 3 years of 5.02%. This is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 9.13% | ||
| ROIC | 4.94% |
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
1.3 Margins
- CSWC's Profit Margin of 39.79% is amongst the best of the industry. CSWC outperforms 85.29% of its industry peers.
- In the last couple of years the Profit Margin of CSWC has declined.
- Looking at the Operating Margin, with a value of 57.94%, CSWC belongs to the top of the industry, outperforming 94.54% of the companies in the same industry.
- CSWC's Operating Margin has improved in the last couple of years.
- The Gross Margin of CSWC (71.83%) is better than 79.41% of its industry peers.
- CSWC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.94% | ||
| PM (TTM) | 39.79% | ||
| GM | 71.83% |
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%
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.
- CSWC has a worse debt/assets ratio than last year.
2.2 Solvency
- CSWC has an Altman-Z score of 1.03. This is a bad value and indicates that CSWC is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.03, CSWC perfoms like the industry average, outperforming 56.30% of the companies in the same industry.
- CSWC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of CSWC (1.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- CSWC has a Current Ratio of 10.45. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
- CSWC has a better Current ratio (10.45) than 90.34% of its industry peers.
- CSWC has a Quick Ratio of 10.45. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
- CSWC's Quick ratio of 10.45 is amongst the best of the industry. CSWC outperforms 90.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.45 | ||
| Quick Ratio | 10.45 |
3. Growth
3.1 Past
- CSWC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.08%.
- The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
- CSWC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.39%.
- The Revenue has been growing by 26.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-12.08%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-13.64%
Revenue 1Y (TTM)11.39%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%16.92%
3.2 Future
- CSWC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.16% yearly.
- The Revenue is expected to grow by 2.00% on average over the next years.
EPS Next Y-4.05%
EPS Next 2Y-4.22%
EPS Next 3Y-3.16%
EPS Next 5YN/A
Revenue Next Year11.37%
Revenue Next 2Y9.48%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.91, which indicates a very decent valuation of CSWC.
- Compared to the rest of the industry, the Price/Earnings ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 71.01% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CSWC to the average of the S&P500 Index (27.32), we can say CSWC is valued rather cheaply.
- CSWC is valuated reasonably with a Price/Forward Earnings ratio of 10.23.
- 74.79% of the companies in the same industry are more expensive than CSWC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, CSWC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.91 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CSWC is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.15 |
4.3 Compensation for Growth
- A cheap valuation may be justified as CSWC's earnings are expected to decrease with -3.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-4.22%
EPS Next 3Y-3.16%
5. Dividend
5.1 Amount
- CSWC has a Yearly Dividend Yield of 9.80%, which is a nice return.
- CSWC's Dividend Yield is a higher than the industry average which is at 6.10.
- Compared to an average S&P500 Dividend Yield of 1.83, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.8% |
5.2 History
- The dividend of CSWC decreases each year by -2.03%.
- CSWC has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
- CSWC pays out 158.04% of its income as dividend. 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.
DP158.04%
EPS Next 2Y-4.22%
EPS Next 3Y-3.16%
CAPITAL SOUTHWEST CORP / CSWC FAQ
Can you provide the ChartMill fundamental rating for CAPITAL SOUTHWEST CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CSWC.
Can you provide the valuation status for CAPITAL SOUTHWEST CORP?
ChartMill assigns a valuation rating of 4 / 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 5 / 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 158.04%.