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CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis

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

22.8  +0.27 (+1.2%)

After market: 22.83 +0.03 (+0.13%)

Fundamental Rating

5

CSWC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. CSWC has an average financial health and profitability rating. CSWC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year CSWC was profitable.
CSWC had a negative operating cash flow in the past year.
In the past 5 years CSWC has always been 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 2025 0 100M -100M -200M

1.2 Ratios

The Return On Assets of CSWC (3.75%) is better than 62.23% of its industry peers.
The Return On Equity of CSWC (7.98%) is comparable to the rest of the industry.
The Return On Invested Capital of CSWC (5.08%) is better than 62.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSWC is below the industry average of 7.84%.
The last Return On Invested Capital (5.08%) for CSWC is above the 3 year average (5.02%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.75%
ROE 7.98%
ROIC 5.08%
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
CSWC Yearly ROA, ROE, ROICCSWC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15

1.3 Margins

With a decent Profit Margin value of 34.51%, CSWC is doing good in the industry, outperforming 78.97% of the companies in the same industry.
In the last couple of years the Profit Margin of CSWC has declined.
CSWC's Operating Margin of 58.92% is amongst the best of the industry. CSWC outperforms 93.99% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
The Gross Margin of CSWC (73.12%) is better than 77.68% of its industry peers.
CSWC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 58.92%
PM (TTM) 34.51%
GM 73.12%
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%
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 2025 0 100 200 300 400 500

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4

2. Health

2.1 Basic Checks

CSWC has more shares outstanding than it did 1 year ago.
CSWC has more shares outstanding than it did 5 years ago.
CSWC has a worse debt/assets ratio than last year.
CSWC Yearly Shares OutstandingCSWC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
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 2025 500M 1B 1.5B

2.2 Solvency

CSWC has an Altman-Z score of 1.01. 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 of 1.01. This is comparable to the rest of the industry: CSWC outperforms 52.79% of its industry peers.
CSWC has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
CSWC has a Debt to Equity ratio of 1.08. This is comparable to the rest of the industry: CSWC outperforms 46.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF N/A
Altman-Z 1.01
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 2025 0 200M -200M 400M 600M 800M

2.3 Liquidity

CSWC has a Current Ratio of 5.19. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
CSWC has a Current ratio of 5.19. This is amongst the best in the industry. CSWC outperforms 87.12% of its industry peers.
CSWC has a Quick Ratio of 5.19. 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 5.19, CSWC belongs to the top of the industry, outperforming 87.12% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.19
Quick Ratio 5.19
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 2025 50M 100M 150M 200M

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5

3. Growth

3.1 Past

CSWC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.89%.
The Earnings Per Share has been growing by 9.26% on average over the past years. This is quite good.
The Revenue has grown by 14.77% in the past year. This is quite good.
The Revenue has been growing by 26.95% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-8.89%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%12.87%

3.2 Future

The Earnings Per Share is expected to decrease by -1.25% on average over the next years.
Based on estimates for the next years, CSWC will show a quite strong growth in Revenue. The Revenue will grow by 11.34% on average per year.
EPS Next Y-2.16%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
EPS Next 5YN/A
Revenue Next Year10.45%
Revenue Next 2Y11.34%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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 2028 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.27, which indicates a very decent valuation of CSWC.
77.68% of the companies in the same industry are more expensive than CSWC, based on the Price/Earnings ratio.
CSWC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 9.47 indicates a reasonable valuation of CSWC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSWC indicates a somewhat cheap valuation: CSWC is cheaper than 75.97% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CSWC is valued rather cheaply.
Industry RankSector Rank
PE 9.27
Fwd PE 9.47
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 77.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.92
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 decent profitability rating of CSWC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 21.30%, CSWC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.00, CSWC pays a better dividend. On top of this CSWC pays more dividend than 97.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CSWC pays a better dividend.
Industry RankSector Rank
Dividend Yield 21.3%

5.2 History

The dividend of CSWC decreases each year by -2.03%.
CSWC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CSWC decreased in the last 3 years.
Dividend Growth(5Y)-2.03%
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 177.56% of its income as dividend. This is not a sustainable payout ratio.
CSWC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP177.56%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
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 2025 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 (7/3/2025, 7:14:23 PM)

After market: 22.83 +0.03 (+0.13%)

22.8

+0.27 (+1.2%)

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 Owners33.12%
Inst Owner Change16.2%
Ins Owners2.79%
Ins Owner Change4.32%
Market Cap1.22B
Analysts77.14
Price Target22.95 (0.66%)
Short Float %4.01%
Short Ratio3.83
Dividend
Industry RankSector Rank
Dividend Yield 21.3%
Yearly Dividend2.56
Dividend Growth(5Y)-2.03%
DP177.56%
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)-6.57%
Min EPS beat(2)-12.51%
Max EPS beat(2)-0.63%
EPS beat(4)0
Avg EPS beat(4)-4.52%
Min EPS beat(4)-12.51%
Max EPS beat(4)-0.58%
EPS beat(8)2
Avg EPS beat(8)-1.6%
EPS beat(12)5
Avg EPS beat(12)-0.21%
EPS beat(16)7
Avg EPS beat(16)-0.19%
Revenue beat(2)1
Avg Revenue beat(2)-0.47%
Min Revenue beat(2)-2.53%
Max Revenue beat(2)1.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)2.48%
Revenue beat(8)5
Avg Revenue beat(8)0.72%
Revenue beat(12)7
Avg Revenue beat(12)0.13%
Revenue beat(16)9
Avg Revenue beat(16)0.24%
PT rev (1m)-4.55%
PT rev (3m)-6.25%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-3.23%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.39%
Valuation
Industry RankSector Rank
PE 9.27
Fwd PE 9.47
P/S 5.99
P/FCF N/A
P/OCF N/A
P/B 1.39
P/tB 1.39
EV/EBITDA 16.92
EPS(TTM)2.46
EY10.79%
EPS(NY)2.41
Fwd EY10.56%
FCF(TTM)-4.08
FCFYN/A
OCF(TTM)-4.05
OCFYN/A
SpS3.81
BVpS16.45
TBVpS16.45
PEG (NY)N/A
PEG (5Y)1
Profitability
Industry RankSector Rank
ROA 3.75%
ROE 7.98%
ROCE 6.43%
ROIC 5.08%
ROICexc 5.2%
ROICexgc 5.33%
OM 58.92%
PM (TTM) 34.51%
GM 73.12%
FCFM N/A
ROA(3y)3.91%
ROA(5y)4.61%
ROE(3y)8.21%
ROE(5y)9.99%
ROIC(3y)5.02%
ROIC(5y)4.45%
ROICexc(3y)5.13%
ROICexc(5y)4.56%
ROICexgc(3y)5.25%
ROICexgc(5y)4.67%
ROCE(3y)6.36%
ROCE(5y)5.64%
ROICexcg growth 3Y13.4%
ROICexcg growth 5Y4.23%
ROICexc growth 3Y13.36%
ROICexc growth 5Y4.27%
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%
F-Score1
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF N/A
Debt/EBITDA 7.57
Cap/Depr 28.41%
Cap/Sales 0.81%
Interest Coverage 2.59
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.19
Quick Ratio 5.19
Altman-Z 1.01
F-Score1
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)13.14%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.36%
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 Y-2.16%
EPS Next 2Y-2.31%
EPS Next 3Y-1.25%
EPS Next 5YN/A
Revenue 1Y (TTM)14.77%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%12.87%
Revenue Next Year10.45%
Revenue Next 2Y11.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.56%
EBIT growth 3Y40.64%
EBIT growth 5Y31.79%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-16.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.26%
OCF growth 3YN/A
OCF growth 5YN/A