Overview Dividends

(CSWC) Capital Southwest - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1405011073

Credit, Mezzanine, Equity, Debt, Buyout

Asset Management & Custody Banks
Market Cap in USD: 1,236m

IPO / Inception: 1990-03-27
Return 12m vs S&P 500: -2.23%

EPS (Earnings per Share)

EPS CAGR: 3.01%
EPS Trend: 37.0%

Last SUE: -0.08
Qual. Beats: 0

Revenue

Rev. CAGR: 23.51%
Rev. Trend: 79.9%

Last SUE: -0.23
Qual. Beats: 0

Dividends

Dividend Yield	14.73%
Yield on Cost 5y	32.25%
Yield CAGR 5y	5.53%
Payout Consistency	26.5%
Payout Ratio	35.2%

Risk via 5d forecast
Volatility	18.0%
Value at Risk 5%th	30.6%
Relative Tail Risk	3.69%

Reward TTM
Sharpe Ratio	0.53
Alpha	-0.13
CAGR/Max DD	0.77

Character TTM
Hurst Exponent	0.570
Beta	0.803
Beta Downside	0.897

Drawdowns 3y
Max DD	27.74%
Mean DD	6.58%
Median DD	5.31%

Description: CSWC Capital Southwest November 16, 2025

Capital Southwest Corporation (NASDAQ:CSWC) focuses on credit, private-equity, and venture-capital investments in middle-market companies, targeting mezzanine, later-stage, mature, and emerging-growth opportunities, as well as buyouts, industry consolidation, recapitalizations, and growth-capital transactions.

The firm explicitly avoids startups, publicly traded entities, real-estate projects, project-finance deals, oil-and-gas exploration, distressed or turnaround situations, and companies experiencing significant senior-management turnover.

In the lower middle market, CSWC typically provides growth financing, funds bolt-on and platform acquisitions, supports refinancing and dividend recapitalizations, and participates in sponsor-led and management-buyout structures.

Investment vehicles include unitranche, subordinated, senior, first- and second-lien debt, as well as preferred and common equity; equity co-investments may reach up to 20 % of the total check, but the firm remains non-controlling.

While industry-agnostic, CSWC shows a preference for industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food & beverage, tech-enabled services, and SaaS models. Specific sub-focuses include energy services (excluding exploration & production), industrial automation & process controls, and specialty chemicals.

Key market data that shape CSWC’s opportunity set: as of Q3 2024 the firm reported approximately $1.2 billion in assets under management; median deal size in its target segment is roughly $45 million; and unitranche spreads in the middle market are trading around 350 bps over LIBOR, reflecting modest credit tightening. Additionally, SaaS revenue growth in the mid-market continues at an 18 % CAGR, while industrial automation spending is projected to rise 6 % annually, both supporting CSWC’s sector tilt.

For a deeper quantitative view of CSWC’s valuation metrics and peer comparison, the ValueRay platform offers a free, data-driven dashboard worth exploring.

Overview
Ticker Symbol: CSWC
Type: Common Stock
Country of Origin: United States
GICS Sub-Industry: Asset Management & Custody Banks

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (86.4m TTM) > 0 and > 6% of Revenue (6% = 11.6m TTM)

FCFTA -0.13 (>2.0%) and ΔFCFTA -8.50pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -53.64% (prev 49.30%; Δ -102.9pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.13 (>3.0%) and CFO -269.4m <= Net Income 86.4m (YES >=105%, WARN >=100%)

Net Debt (307.3m) to EBITDA (108.3m) ratio: 2.84 <= 3.0 (WARN <= 3.5)

Current Ratio 0.54 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (64.8m) change vs 12m ago 37.23% (target <= -2.0% for YES)

Gross Margin 68.36% (prev 66.88%; Δ 1.48pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 10.67% (prev 9.85%; Δ 0.82pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 1.66 (EBITDA TTM 108.3m / Interest Expense TTM 61.2m) >= 6 (WARN >= 3)

Altman Z'' -0.22

(A) -0.05 = (Total Current Assets 123.2m - Total Current Liabilities 226.9m) / Total Assets 2.02b

(B) -0.05 = Retained Earnings (Balance) -107.5m / Total Assets 2.02b

(D) -0.09 = Book Value of Equity -93.2m / Total Liabilities 1.07b

Total Rating: -0.22 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 49.96

1. Piotroski 4.0pt

2. FCF Yield -17.44%

3. FCF Margin data missing

4. Debt/Equity 0.42

5. Debt/Ebitda 2.84

6. ROIC - WACC (= -2.89)%

7. RoE 9.92%

8. Rev. Trend 79.95%

9. EPS Trend 37.04%

What is the price of CSWC shares?

As of December 24, 2025, the stock is trading at USD 21.52 with a total of 399,322 shares traded.
Over the past week, the price has changed by -0.97%, over one month by +3.10%, over three months by -2.75% and over the past year by +14.44%.

Is CSWC a buy, sell or hold?

Capital Southwest has received a consensus analysts rating of 3.71. Therefor, it is recommend to hold CSWC.

Strong Buy: 2
Buy: 1
Hold: 4
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the CSWC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	23.6	9.6%
Analysts Target Price	23.6	9.6%
ValueRay Target Price	28	30.2%

CSWC Fundamental Data Overview December 24, 2025

Market Cap USD = 1.24b (1.24b USD * 1.0 USD.USD)
P/E Trailing = 13.4375
P/E Forward = 9.9502
P/S = 5.6866
P/B = 1.3095
P/EG = 12.5538
Beta = 0.801
Revenue TTM = 193.4m USD
EBIT TTM = 101.6m USD
EBITDA TTM = 108.3m USD
Long Term Debt = 170.9m USD (estimated: total debt 394.8m - short term 223.8m)
Short Term Debt = 223.8m USD (from shortTermDebt, last quarter)
Debt = 394.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 307.3m USD (from netDebt column, last quarter)
Enterprise Value = 1.54b USD (1.24b + Debt 394.8m - CCE 87.4m)
Interest Coverage Ratio = 1.66 (Ebit TTM 101.6m / Interest Expense TTM 61.2m)
FCF Yield = -17.44% (FCF TTM -269.1m / Enterprise Value 1.54b)
FCF Margin = -139.1% (FCF TTM -269.1m / Revenue TTM 193.4m)
Net Margin = 44.69% (Net Income TTM 86.4m / Revenue TTM 193.4m)
Gross Margin = 68.36% ((Revenue TTM 193.4m - Cost of Revenue TTM 61.2m) / Revenue TTM)
Gross Margin QoQ = 69.43% (prev 71.58%)
Tobins Q-Ratio = 0.76 (Enterprise Value 1.54b / Total Assets 2.02b)
Interest Expense / Debt = 4.06% (Interest Expense 16.0m / Debt 394.8m)
Taxrate = 13.06% (3.85m / 29.5m)
NOPAT = 88.4m (EBIT 101.6m * (1 - 13.06%))
Current Ratio = 0.54 (Total Current Assets 123.2m / Total Current Liabilities 226.9m)
Debt / Equity = 0.42 (Debt 394.8m / totalStockholderEquity, last quarter 947.0m)
Debt / EBITDA = 2.84 (Net Debt 307.3m / EBITDA 108.3m)
Debt / FCF = -1.14 (negative FCF - burning cash) (Net Debt 307.3m / FCF TTM -269.1m)
Total Stockholder Equity = 871.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.28% (Net Income 86.4m / Total Assets 2.02b)
RoE = 9.92% (Net Income TTM 86.4m / Total Stockholder Equity 871.3m)
RoCE = 9.75% (EBIT 101.6m / Capital Employed (Equity 871.3m + L.T.Debt 170.9m))
RoIC = 4.77% (NOPAT 88.4m / Invested Capital 1.85b)
WACC = 7.65% (E(1.24b)/V(1.63b) * Re(8.97%) + D(394.8m)/V(1.63b) * Rd(4.06%) * (1-Tc(0.13)))
Discount Rate = 8.97% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 24.97%
Fair Price DCF = unknown (Cash Flow -269.1m)
EPS Correlation: 37.04 | EPS CAGR: 3.01% | SUE: -0.08 | # QB: 0
Revenue Correlation: 79.95 | Revenue CAGR: 23.51% | SUE: -0.23 | # QB: 0
EPS current Year (2026-03-31): EPS=2.32 | Chg30d=-0.017 | Revisions Net=-3 | Growth EPS=-5.6% | Growth Revenue=+11.7%
EPS next Year (2027-03-31): EPS=2.24 | Chg30d=-0.050 | Revisions Net=-5 | Growth EPS=-3.4% | Growth Revenue=+7.6%

Additional Sources for CSWC Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle