CAPITAL SOUTHWEST CORP (CSWC) Stock Fundamental Analysis
USA - NASDAQ:CSWC - US1405011073 - Common Stock
20.35 USD
-0.16 (-0.78%)
CSWC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 237 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CSWC had positive earnings in the past year.
CSWC had a negative operating cash flow in the past year.
In the past 5 years CSWC has always been profitable.
CSWC had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
CSWC has a better Return On Assets (4.28%) than 65.82% of its industry peers.
The Return On Equity of CSWC (9.13%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 4.94%, CSWC is doing good in the industry, outperforming 63.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CSWC is below the industry average of 7.11%.
| 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
The Profit Margin of CSWC (39.79%) is better than 85.23% of its industry peers.
CSWC's Profit Margin has declined in the last couple of years.
CSWC has a better Operating Margin (57.94%) than 94.09% of its industry peers.
In the last couple of years the Operating Margin of CSWC has grown nicely.
CSWC has a better Gross Margin (71.83%) than 78.90% 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
Compared to 1 year ago, CSWC has more shares outstanding
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 0.92. This is a bad value and indicates that CSWC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CSWC (0.92) is comparable to the rest of the industry.
CSWC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
CSWC has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: CSWC outperforms 44.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
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 Current ratio of 10.45. This is amongst the best in the industry. CSWC outperforms 92.41% 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.
The Quick ratio of CSWC (10.45) is better than 92.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.45 | ||
| Quick Ratio | 10.45 |
3. Growth
3.1 Past
The earnings per share for CSWC have decreased strongly by -12.08% in the last year.
Measured over the past years, CSWC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.26% on average per year.
Looking at the last year, CSWC shows a quite strong growth in Revenue. The Revenue has grown by 11.39% in the last year.
Measured over the past years, CSWC shows a very strong growth in Revenue. The Revenue has been growing by 26.95% on average per year.
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
The Earnings Per Share is expected to decrease by -3.20% 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 11.36% on average per year.
EPS Next Y-5.84%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue Next Year11.98%
Revenue Next 2Y11.36%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.73, 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 76.37% of the companies listed in the same industry.
CSWC is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.70, which indicates a very decent valuation of CSWC.
Based on the Price/Forward Earnings ratio, CSWC is valued a bit cheaper than 77.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. CSWC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.7 |
4.2 Price Multiples
CSWC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSWC is cheaper than 77.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.75 |
4.3 Compensation for Growth
A cheap valuation may be justified as CSWC's earnings are expected to decrease with -3.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 11.12%, which is a nice return.
Compared to an average industry Dividend Yield of 8.48, CSWC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, CSWC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.12% |
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.
CSWC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP158.04%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
NASDAQ:CSWC (11/18/2025, 12:03:08 PM)
20.35
-0.16 (-0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners33.39%
Inst Owner Change-46.65%
Ins Owners3.04%
Ins Owner Change11.85%
Market Cap1.13B
Revenue(TTM)217.27M
Net Income(TTM)86.45M
Analysts77.14
Price Target24.03 (18.08%)
Short Float %5.41%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 11.12% |
Yearly Dividend2.56
Dividend Growth(5Y)-2.03%
DP158.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.29%
Min EPS beat(2)-1.38%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-3.93%
Min EPS beat(4)-12.51%
Max EPS beat(4)-0.63%
EPS beat(8)1
Avg EPS beat(8)-2.26%
EPS beat(12)4
Avg EPS beat(12)-0.34%
EPS beat(16)7
Avg EPS beat(16)0.11%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-0.14%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)1.58%
Revenue beat(8)4
Avg Revenue beat(8)0.49%
Revenue beat(12)7
Avg Revenue beat(12)0.08%
Revenue beat(16)9
Avg Revenue beat(16)0.23%
PT rev (1m)-0.79%
PT rev (3m)1.19%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-1.6%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-2.48%
Revenue NQ rev (1m)-0.55%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 8.7 | ||
| P/S | 5.21 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 15.75 |
EPS(TTM)2.33
EY11.45%
EPS(NY)2.34
Fwd EY11.5%
FCF(TTM)-4.79
FCFYN/A
OCF(TTM)-4.77
OCFYN/A
SpS3.91
BVpS17.02
TBVpS17.02
PEG (NY)N/A
PEG (5Y)0.94
Graham Number29.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 9.13% | ||
| ROCE | 6.25% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.17% | ||
| ROICexgc | 5.29% | ||
| OM | 57.94% | ||
| PM (TTM) | 39.79% | ||
| GM | 71.83% | ||
| 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%
ROICexgc growth 3Y13.4%
ROICexgc 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.8 | ||
| Cap/Depr | 20.38% | ||
| Cap/Sales | 0.63% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 10.45 | ||
| Quick Ratio | 10.45 | ||
| Altman-Z | 0.92 |
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)-12.08%
EPS 3Y9.57%
EPS 5Y9.26%
EPS Q2Q%-13.64%
EPS Next Y-5.84%
EPS Next 2Y-2.47%
EPS Next 3Y-3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)11.39%
Revenue growth 3Y35.49%
Revenue growth 5Y26.95%
Sales Q2Q%16.92%
Revenue Next Year11.98%
Revenue Next 2Y11.36%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.18%
EBIT growth 3Y40.64%
EBIT growth 5Y31.79%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-12.99%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-12.46%
OCF growth 3YN/A
OCF growth 5YN/A
CAPITAL SOUTHWEST CORP / CSWC FAQ
Can you provide the ChartMill fundamental rating for CAPITAL SOUTHWEST CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CSWC.
What is the valuation status for CSWC stock?
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.
What is the valuation of CAPITAL SOUTHWEST CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CAPITAL SOUTHWEST CORP (CSWC) is 8.73 and the Price/Book (PB) ratio is 1.2.
Can you provide the financial health for CSWC stock?
The financial health rating of CAPITAL SOUTHWEST CORP (CSWC) is 4 / 10.