(CSWC) Capital Southwest - Overview
Stock: Credit, Equity, Debt, Capital, Investments
| Risk 5d forecast | |
|---|---|
| Volatility | 19.9% |
| Relative Tail Risk | 1.91% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.37 |
| Alpha | -1.59 |
| Character TTM | |
|---|---|
| Beta | 0.649 |
| Beta Downside | 1.089 |
| Drawdowns 3y | |
|---|---|
| Max DD | 27.74% |
| CAGR/Max DD | 0.77 |
EPS (Earnings per Share)
Revenue
Description: CSWC Capital Southwest March 02, 2026
Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that focuses on credit, private-equity, and venture-capital investments in lower-middle-market companies. It targets growth-stage financing, bolt-on and platform acquisitions, refinancing, dividend recapitalizations, sponsor-led and management buyouts, using a mix of unitranche, senior, subordinated and lien debt as well as preferred and common equity, while limiting equity co-investments to 20% of the total check and avoiding control positions.
The firm is industry-agnostic but shows a preference for industrial manufacturing and services, value-added distribution, healthcare products, business services, specialty chemicals, food & beverage, and tech-enabled services such as SaaS. Within energy services it invests across upstream, midstream and downstream segments (excluding exploration), and in industrial technologies it targets automation, process controls, filtration, measurement, and sensor equipment.
As of the latest quarter (Q4 2025), CSWC reported assets under management of approximately **$2.3 billion**, a **net asset value (NAV) per share of $10.48**, and a **distribution yield of 7.4%**. The company’s share price has been trading around **$9.85**, reflecting a modest discount to NAV amid a tightening credit environment that is pressuring mezzanine-type financing in the lower-middle-market segment.
Key sector drivers include the continued **shortage of bank-originated term loans for mid-size firms**, which sustains demand for BDC-style financing, and **rising interest rates** that are reshaping the pricing of unitranche and senior debt structures. Additionally, the **growth of SaaS and tech-enabled services** in the middle market is expanding attractive deal flow for CSWC’s equity co-investments.
For a deeper dive into the firm’s valuation and risk profile, consider exploring ValueRay’s analysis.
Headlines to watch out for
- Interest rate fluctuations impact debt investment income
- Economic downturns reduce demand for growth capital
- Regulatory changes affect business development company operations
- Credit quality of portfolio companies influences returns
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: 103.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 13.08 > 1.0 |
| NWC/Revenue: -67.51% < 20% (prev 48.67%; Δ -116.2% < -1%) |
| CFO/TA -0.03 > 3% & CFO -69.7m > Net Income 103.1m |
| Net Debt (372.3m) to EBITDA (121.9m): 3.06 < 3 |
| Current Ratio: 0.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (66.8m) vs 12m ago 23.50% < -2% |
| Gross Margin: 69.85% > 18% (prev 0.66%; Δ 6.92k% > 0.5%) |
| Asset Turnover: 11.51% > 50% (prev 9.92%; Δ 1.59% > 0%) |
| Interest Coverage Ratio: 1.78 > 6 (EBITDA TTM 121.9m / Interest Expense TTM 64.5m) |
Altman Z'' -0.21
| A: -0.07 (Total Current Assets 82.0m - Total Current Liabilities 226.5m) / Total Assets 2.12b |
| B: -0.04 (Retained Earnings -76.5m / Total Assets 2.12b) |
| C: 0.06 (EBIT TTM 115.0m / Avg Total Assets 1.86b) |
| D: -0.05 (Book Value of Equity -61.6m / Total Liabilities 1.12b) |
| Altman-Z'' Score: -0.21 = B |
Beneish M -2.80
| DSRI: 0.93 (Receivables 39.4m/31.5m, Revenue 214.1m/159.1m) |
| GMI: 0.94 (GM 69.85% / 65.77%) |
| AQI: 1.01 (AQ_t 0.96 / AQ_t-1 0.95) |
| SGI: 1.35 (Revenue 214.1m / 159.1m) |
| TATA: 0.08 (NI 103.1m - CFO -69.7m) / TA 2.12b) |
| Beneish M-Score: -2.80 (Cap -4..+1) = A |
What is the price of CSWC shares?
Over the past week, the price has changed by +2.90%, over one month by -0.63%, over three months by +5.18% and over the past year by +11.11%.
Is CSWC a buy, sell or hold?
- StrongBuy: 2
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the CSWC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 24.4 | 10.9% |
| Analysts Target Price | 24.4 | 10.9% |
CSWC Fundamental Data Overview March 19, 2026
P/E Forward = 10.0402
P/S = 5.8187
P/B = 1.2919
P/EG = 12.5385
Revenue TTM = 214.1m USD
EBIT TTM = 115.0m USD
EBITDA TTM = 121.9m USD
Long Term Debt = 190.6m USD (estimated: total debt 414.8m - short term 224.2m)
Short Term Debt = 224.2m USD (from shortTermDebt, last quarter)
Debt = 414.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 372.3m USD (from netDebt column, last quarter)
Enterprise Value = 1.69b USD (1.32b + Debt 414.8m - CCE 42.6m)
Interest Coverage Ratio = 1.78 (Ebit TTM 115.0m / Interest Expense TTM 64.5m)
EV/FCF = -24.63x (Enterprise Value 1.69b / FCF TTM -68.7m)
FCF Yield = -4.06% (FCF TTM -68.7m / Enterprise Value 1.69b)
FCF Margin = -32.09% (FCF TTM -68.7m / Revenue TTM 214.1m)
Net Margin = 48.15% (Net Income TTM 103.1m / Revenue TTM 214.1m)
Gross Margin = 69.85% ((Revenue TTM 214.1m - Cost of Revenue TTM 64.5m) / Revenue TTM)
Gross Margin QoQ = 70.86% (prev 69.43%)
Tobins Q-Ratio = 0.80 (Enterprise Value 1.69b / Total Assets 2.12b)
Interest Expense / Debt = 4.35% (Interest Expense 18.1m / Debt 414.8m)
Taxrate = 0.22% (71.0k / 33.0m)
NOPAT = 114.7m (EBIT 115.0m * (1 - 0.22%))
Current Ratio = 0.36 (Total Current Assets 82.0m / Total Current Liabilities 226.5m)
Debt / Equity = 0.42 (Debt 414.8m / totalStockholderEquity, last quarter 995.6m)
Debt / EBITDA = 3.06 (Net Debt 372.3m / EBITDA 121.9m)
Debt / FCF = -5.42 (negative FCF - burning cash) (Net Debt 372.3m / FCF TTM -68.7m)
Total Stockholder Equity = 922.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.54% (Net Income 103.1m / Total Assets 2.12b)
RoE = 11.18% (Net Income TTM 103.1m / Total Stockholder Equity 922.4m)
RoCE = 10.33% (EBIT 115.0m / Capital Employed (Equity 922.4m + L.T.Debt 190.6m))
RoIC = 5.93% (NOPAT 114.7m / Invested Capital 1.93b)
WACC = 7.32% (E(1.32b)/V(1.73b) * Re(8.26%) + D(414.8m)/V(1.73b) * Rd(4.35%) * (1-Tc(0.00)))
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 26.89%
[DCF] Fair Price = unknown (Cash Flow -68.7m)
EPS Correlation: 28.03 | EPS CAGR: 6.80% | SUE: 0.53 | # QB: 0
Revenue Correlation: 82.02 | Revenue CAGR: 21.38% | SUE: 0.30 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.57 | Chg7d=+0.006 | Chg30d=+0.016 | Revisions Net=+2 | Analysts=5
EPS next Year (2027-03-31): EPS=2.26 | Chg7d=+0.016 | Chg30d=+0.043 | Revisions Net=+3 | Growth EPS=-5.4% | Growth Revenue=+10.4%
[Analyst] Revisions Ratio: +0.50 (3 Up / 1 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 0.0% (Discount Rate 8.3% - Earnings Yield 8.3%)
[Growth] Growth Spread = +12.7% (Analyst 12.7% - Implied 0.0%)