CSWC Stock Analysis: Capital Southwest | NASDAQ
Asset Management | NASDAQ, USA | Market Cap: 1.567m USD | 12M Return: 23.4% | US1405011073 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 15.1M
EPS Trend: -90.5%
Qual. Beats: 1
Rev. Trend: 96.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Capital Southwest Corporation (CSWC) is a Business Development Company (BDC) that provides financing to lower middle market companies through a mix of credit and equity investments. BDCs are regulated under the Investment Company Act of 1940 and are generally required to distribute the bulk of their taxable income as dividends, which is a defining feature of the business model.
The firm structures its investments primarily through debt instruments, including unitranche, senior, subordinated, first and second lien debt, alongside preferred and common equity. Equity participation is capped at roughly 20% of the total check size, and the firm only takes non-control positions. It explicitly avoids startups, public companies, real estate, oil and gas exploration, and distressed or turnaround situations.
Although industry agnostic overall, CSWC concentrates on industrial manufacturing and services, value-added distribution, healthcare, business services, specialty chemicals, food and beverage, and tech-enabled services and SaaS models. Within its three priority verticals, energy services and products, industrial technologies, and specialty chemicals and products, the firm targets specific niches such as drilling and completion chemicals, automation and process controls, and industrial filtration.
- Floating-rate loan portfolio benefits from higher rate environment
- Non-accrual rate trends reveal portfolio credit quality direction
- Net investment income growth supports dividend coverage and NAV accretion
| Net Income: 110.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.08 > 0.02 and ΔFCF/TA 4.12 > 1.0 |
| NWC/Revenue: -73.04% < 20% (prev -82.82%; Δ 9.78% < -1%) |
| CFO/TA -0.08 > 3% & CFO -177.4m > Net Income 110.7m |
| Net Debt (425.4m) to EBITDA (157.7m): 2.70 < 3 |
| Current Ratio: 0.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (70.5m) vs 12m ago 12.31% < -2% |
| Gross Margin: 93.93% > 18% (prev 68.12%; Δ 25.81% > 0.5%) |
| Asset Turnover: 10.95% > 50% (prev 9.63%; Δ 1.32% > 0%) |
| Interest Coverage Ratio: 2.16 > 6 (EBIT TTM 150.7m / Interest Expense TTM 69.9m) |
| A: -0.07 (Total Current Assets 58.5m - Total Current Liabilities 226.3m) / Total Assets 2.32b |
| B: -0.04 (Retained Earnings -93.9m / Total Assets 2.32b) |
| C: 0.07 (EBIT TTM 150.7m / Avg Total Assets 2.10b) |
| D: 0.84 (Book Value of Equity 1.06b / Total Liabilities 1.26b) |
| Altman-Z'' = 0.76 = B |
As of August 21, 2026, the stock is trading at USD 24.68 with a total of 560,874 shares traded. Over the past week, the price has changed by -1.50%, over one month by +4.24%, over three months by +9.06% and over the past year by +23.40%.
Current recommended Stop Loss: 24.10 (which is 2.4% or 1.5 ATR below the current price).
Capital Southwest has received a consensus analysts rating of 3.71. Therefore, it is recommended to hold CSWC.
- StrongBuy: 2
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 25.3 | 2.5% |
P/E Trailing = 13.5856
P/E Forward = 12.0773
P/S = 6.607
P/B = 1.4831
P/EG = 12.5385
Revenue TTM = 229.8m USD
EBIT TTM = 150.7m USD
EBITDA TTM = 157.7m USD
Long Term Debt = 258.9m USD (estimated: total debt 483.9m - short term 225.0m)
Short Term Debt = 225.0m USD (from shortTermDebt, last quarter)
Debt = 483.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 425.4m USD (calculated: Debt 483.9m - CCE 58.5m)
Enterprise Value = 1.99b USD (1.57b + Debt 483.9m - CCE 58.5m)
Interest Coverage Ratio = 2.16 (Ebit TTM 150.7m / Interest Expense TTM 69.9m)
EV/FCF = -11.21x (Enterprise Value 1.99b / FCF TTM -177.8m)
FCF Yield = -8.92% (FCF TTM -177.8m / Enterprise Value 1.99b)
FCF Margin = -77.38% (FCF TTM -177.8m / Revenue TTM 229.8m)
Net Margin = 48.19% (Net Income TTM 110.7m / Revenue TTM 229.8m)
Gross Margin = 93.93% ((Revenue TTM 229.8m - Cost of Revenue TTM 13.9m) / Revenue TTM)
Gross Margin QoQ = 94.15% (prev none%)
Tobins Q-Ratio = 0.86 (Enterprise Value 1.99b / Total Assets 2.32b)
Interest Expense / Debt = 14.44% (Interest Expense 69.9m / Debt 483.9m)
Taxrate = 3.65% (4.20m / 114.9m)
NOPAT = 145.2m (EBIT 150.7m * (1 - 3.65%))
Current Ratio = 0.26 (Total Current Assets 58.5m / Total Current Liabilities 226.3m)
Debt / Equity = 0.46 (Debt 483.9m / totalStockholderEquity, last quarter 1.06b)
Debt / EBITDA = 2.70 (Net Debt 425.4m / EBITDA 157.7m)
Debt / FCF = -2.39 (negative FCF - burning cash) (Net Debt 425.4m / FCF TTM -177.8m)
Total Stockholder Equity = 1.00b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.28% (Net Income 110.7m / Total Assets 2.32b)
RoE = 11.04% (Net Income TTM 110.7m / Total Stockholder Equity 1.00b)
RoCE = 11.94% (EBIT 150.7m / Capital Employed (Equity 1.00b + L.T.Debt 258.9m))
RoIC = 6.30% (NOPAT 145.2m / Invested Capital 2.30b)
WACC = 9.48% (E(1.57b)/V(2.05b) * Re(8.11%) + D(483.9m)/V(2.05b) * Rd(14.44%) * (1-Tc(0.04)))
Discount Rate = 8.11% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.61 | Cagr: 23.22%
[DCF] Fair Price = unknown (Cash Flow -177.8m)
EPS Correlation: -90.47 | EPS CAGR: -5.80% | SUE: 1.28 | # QB: 1
Revenue Correlation: 96.22 | Revenue CAGR: 20.91% | SUE: 0.02 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.56 | Chg30d=+2.02% | Revisions=+12% | Analysts=6
EPS next Quarter (2026-12-31): EPS=0.57 | Chg30d=+3.70% | Revisions=+12% | Analysts=6
EPS current Year (2027-03-31): EPS=2.24 | Chg30d=+2.86% | Revisions=-12% | GrowthEPS=-5.6% | GrowthRev=+14.5%
EPS next Year (2028-03-31): EPS=2.33 | Chg30d=+5.23% | Revisions=+38% | GrowthEPS=+4.3% | GrowthRev=+13.2%
[Analyst] Revisions Ratio: +17% (up=12, down=8)