(CSWC) Capital Southwest - Ratings and Ratios
Mezzanine,Subordinated,Debt,Equity,Growth
CSWC EPS (Earnings per Share)
CSWC Revenue
Description: CSWC Capital Southwest August 21, 2025
Capital Southwest Corporation (CSWC) is a US-based company operating in the Asset Management & Custody Banks sub-industry. As a business development company (BDC), CSWC provides financing to middle-market companies, generating income through interest and dividends.
To evaluate CSWCs performance, key drivers to consider include net investment income, dividend yield, and the overall health of its investment portfolio. A crucial metric is the companys ability to maintain a stable or growing dividend payout, which is often a key consideration for income-focused investors. The return on equity (RoE) of 9.76% indicates a reasonable level of profitability relative to shareholder equity.
From a valuation perspective, the price-to-earnings (P/E) ratio of 13.70 and forward P/E of 9.95 suggest that CSWCs stock may be undervalued relative to its earnings potential. The market capitalization of $1.25 billion indicates a moderate level of liquidity, supported by an average trading volume of over 510,000 shares.
Economic drivers influencing CSWCs performance include interest rates, credit market conditions, and the overall state of the US economy. Rising interest rates can increase the yield on CSWCs investments, potentially boosting net investment income. Conversely, economic downturns can lead to increased credit risk and potential defaults within the portfolio.
To further assess CSWCs investment potential, it is essential to monitor its portfolio composition, credit quality, and the effectiveness of its investment strategy in various economic environments. Key performance indicators (KPIs) such as the debt-to-equity ratio, investment yield, and the percentage of non-accrual investments can provide valuable insights into the companys financial health and operational efficiency.
CSWC Stock Overview
| Market Cap in USD | 1,130m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 1990-03-27 |
CSWC Stock Ratings
| Growth Rating | 58.9% |
| Fundamental | 48.3% |
| Dividend Rating | 53.1% |
| Return 12m vs S&P 500 | -11.4% |
| Analyst Rating | 3.71 of 5 |
CSWC Dividends
| Dividend Yield 12m | 15.26% |
| Yield on Cost 5y | 36.10% |
| Annual Growth 5y | 5.53% |
| Payout Consistency | 37.6% |
| Payout Ratio | 46.6% |
CSWC Growth Ratios
| Growth Correlation 3m | -70.5% |
| Growth Correlation 12m | 43.3% |
| Growth Correlation 5y | 77.8% |
| CAGR 5y | 15.34% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.55 |
| CAGR/Mean DD 3y (Pain Ratio) | 2.31 |
| Sharpe Ratio 12m | 0.29 |
| Alpha | -12.98 |
| Beta | 0.993 |
| Volatility | 22.89% |
| Current Volume | 676.8k |
| Average Volume 20d | 559k |
| Stop Loss | 20.1 (-3.2%) |
| Signal | -1.05 |
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (83.5m TTM) > 0 and > 6% of Revenue (6% = 11.0m TTM) |
| FCFTA -0.12 (>2.0%) and ΔFCFTA -5.21pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -100.2% (prev 36.93%; Δ -137.2pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.12 (>3.0%) and CFO -222.0m <= Net Income 83.5m (YES >=105%, WARN >=100%) |
| Net Debt (347.7m) to EBITDA (156.5m) ratio: 2.22 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.20 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (62.8m) change vs 12m ago 37.47% (target <= -2.0% for YES) |
| Gross Margin 89.19% (prev 96.98%; Δ -7.80pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 10.71% (prev 10.30%; Δ 0.41pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.82 (EBITDA TTM 156.5m / Interest Expense TTM 82.3m) >= 6 (WARN >= 3) |
Altman Z'' -0.31
| (A) -0.10 = (Total Current Assets 46.9m - Total Current Liabilities 230.9m) / Total Assets 1.88b |
| (B) -0.05 = Retained Earnings (Balance) -97.1m / Total Assets 1.88b |
| (C) 0.09 = EBIT TTM 150.2m / Avg Total Assets 1.71b |
| (D) -0.09 = Book Value of Equity -83.3m / Total Liabilities 965.9m |
| Total Rating: -0.31 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 48.26
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield -15.03% = -5.0 |
| 3. FCF Margin data missing |
| 4. Debt/Equity 0.43 = 2.41 |
| 5. Debt/Ebitda 2.22 = -0.43 |
| 6. ROIC - WACC (= -0.46)% = -0.57 |
| 7. RoE 9.76% = 0.81 |
| 8. Rev. Trend 72.75% = 5.46 |
| 9. EPS Trend -48.19% = -2.41 |
What is the price of CSWC shares?
Over the past week, the price has changed by +2.21%, over one month by +0.18%, over three months by -4.99% and over the past year by +1.01%.
Is Capital Southwest a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CSWC is around 22.64 USD . This means that CSWC is currently overvalued and has a potential downside of 9%.
Is CSWC a buy, sell or hold?
- 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 | 13.5% |
| Analysts Target Price | 23.6 | 13.5% |
| ValueRay Target Price | 25.2 | 21.1% |
CSWC Fundamental Data Overview November 04, 2025
P/E Trailing = 12.3902
P/E Forward = 9.6525
P/S = 5.4076
P/B = 1.3378
P/EG = 12.5538
Beta = 0.993
Revenue TTM = 183.5m USD
EBIT TTM = 150.2m USD
EBITDA TTM = 156.5m USD
Long Term Debt = 171.1m USD (estimated: total debt 394.6m - short term 223.5m)
Short Term Debt = 223.5m USD (from shortTermDebt, last quarter)
Debt = 394.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 347.7m USD (from netDebt column, last quarter)
Enterprise Value = 1.48b USD (1.13b + Debt 394.6m - CCE 46.9m)
Interest Coverage Ratio = 1.82 (Ebit TTM 150.2m / Interest Expense TTM 82.3m)
FCF Yield = -15.03% (FCF TTM -222.2m / Enterprise Value 1.48b)
FCF Margin = -121.0% (FCF TTM -222.2m / Revenue TTM 183.5m)
Net Margin = 45.50% (Net Income TTM 83.5m / Revenue TTM 183.5m)
Gross Margin = 89.19% ((Revenue TTM 183.5m - Cost of Revenue TTM 19.9m) / Revenue TTM)
Gross Margin QoQ = 80.40% (prev 94.05%)
Tobins Q-Ratio = 0.79 (Enterprise Value 1.48b / Total Assets 1.88b)
Interest Expense / Debt = 3.87% (Interest Expense 15.3m / Debt 394.6m)
Taxrate = 11.38% (3.47m / 30.5m)
NOPAT = 133.1m (EBIT 150.2m * (1 - 11.38%))
Current Ratio = 0.20 (Total Current Assets 46.9m / Total Current Liabilities 230.9m)
Debt / Equity = 0.43 (Debt 394.6m / totalStockholderEquity, last quarter 916.5m)
Debt / EBITDA = 2.22 (Net Debt 347.7m / EBITDA 156.5m)
Debt / FCF = -1.57 (negative FCF - burning cash) (Net Debt 347.7m / FCF TTM -222.2m)
Total Stockholder Equity = 855.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.44% (Net Income 83.5m / Total Assets 1.88b)
RoE = 9.76% (Net Income TTM 83.5m / Total Stockholder Equity 855.5m)
RoCE = 14.63% (EBIT 150.2m / Capital Employed (Equity 855.5m + L.T.Debt 171.1m))
RoIC = 7.60% (NOPAT 133.1m / Invested Capital 1.75b)
WACC = 8.05% (E(1.13b)/V(1.52b) * Re(9.67%) + D(394.6m)/V(1.52b) * Rd(3.87%) * (1-Tc(0.11)))
Discount Rate = 9.67% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 22.97%
Fair Price DCF = unknown (Cash Flow -222.2m)
EPS Correlation: -48.19 | EPS CAGR: -57.53% | SUE: -4.0 | # QB: 0
Revenue Correlation: 72.75 | Revenue CAGR: 75.44% | SUE: 1.30 | # QB: 1
Additional Sources for CSWC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle