CSWC Stock Analysis: Capital Southwest | NASDAQ

Debt Financing, Private Equity, Mezzanine Capital, Growth Capital

Total Rating 36

Safety 33

Buy Signal -0.93

Asset Management
Industry Rotation: -5.2

Market Cap: 1.47B
Avg Turnover: 12.1M

Risk 3d forecast

Volatility25.1%

VaR 5^th Pctl4.61%

VaR vs Median11.3%

Reward TTM

Sharpe Ratio1.02

Rel. Str. IBD54.4

Rel. Str. Peer Group75 pctl

Character TTM

Beta0.627

Beta Downside0.579

Hurst Exponent0.441

Choppyness48.8%

Drawdowns 3y

Max DD27.74%

CAGR/Max DD0.54

CAGR/Mean DD2.39

EPS (Earnings per Share)

EPS CAGR: -5.80%
EPS Trend: -90.5%

Last SUE: 1.28
Qual. Beats: 1

Revenue

Rev. CAGR: 20.91%
Rev. Trend: 96.2%

Last SUE: 0.02
Qual. Beats: 0

Warnings

Below Avwap Earnings

Tailwinds

No distinct edge detected

Seasonality 11.7 years of data

Jan +1.4% 29

Feb -1.7% 21

Mar +0.2% 19

Apr +0.0% 5

May -1.2% 18

Jun +0.3% 19

Jul +1.3% 18

Aug +1.2% 6

Sep -0.9% 27

Oct -1.5% 14

Nov -0.2% 2

Dec -0.8% 14

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.

Description: CSWC Capital Southwest

Capital Southwest Corporation (CSWC) is a Business Development Company (BDC) that specializes in providing credit and private equity/venture capital investments to lower middle market companies. BDCs are regulated investment vehicles under the Investment Company Act of 1940, typically required to distribute the majority of their taxable income to shareholders, and they serve as a key source of financing for small and mid-sized private businesses that lack access to public capital markets.

The firm invests through a range of structures, including unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. It makes non-control investments only, with equity co-investments capped at approximately 20% of the total check size. CSWC explicitly avoids startups, publicly traded companies, real estate developments, project finance, oil and gas exploration, troubled companies, and turnaround situations.

While industry-agnostic, CSWC favors sectors such as industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, and tech-enabled services including SaaS models. Within energy services and products, the firm invests across upstream, midstream, and downstream segments (excluding exploration and production), with emphasis on differentiated products, equipment rental, consumables, and drilling and completion chemicals. In industrial technologies, focus areas include automation and process controls, handling and packaging equipment, industrial filtration, measurement and monitoring tools, professional tools, and sensors and instrumentation.

Headlines to Watch Out For

Fed rate hikes boost floating rate investment income
Credit quality holds as non-accrual rates stay low
Capital deployment accelerates in lower middle market

Piotroski VR-10 (Strict) 3.0

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)

Altman Z'' 0.76

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

What is the price of CSWC shares?

As of October 20, 2026, the stock is trading at USD 22.52 with a total of 810,514 shares traded. Over the past week, the price has changed by -3.46%, over one month by -3.12%, over three months by -3.08% and over the past year by +23.41%.

Current recommended Stop Loss: 21.90 (which is 2.8% or 1.6 ATR below the current price).

Is CSWC a buy, sell or hold?

Capital Southwest has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy CSWC.

StrongBuy: 3
Buy: 1
Hold: 3
Sell: 0
StrongSell: 0

What are the forecasts/targets for the CSWC price?

Analysts Target Price	25.1	11.4%

Capital Southwest (CSWC) - Fundamental Data Overview as of 18 October 2026

Market Cap USD = 1.47b (1.47b USD * 1.0 USD.USD)
P/E Trailing = 12.7514
P/E Forward = 11.4416
P/S = 6.2013
P/B = 1.4048
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 = 1.90b USD (1.47b + Debt 483.9m - CCE 58.5m)
Interest Coverage Ratio = 2.16 (Ebit TTM 150.7m / Interest Expense TTM 69.9m)
EV/FCF = -10.66x (Enterprise Value 1.90b / FCF TTM -177.8m)
FCF Yield = -9.38% (FCF TTM -177.8m / Enterprise Value 1.90b)
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 = 0.82 (Enterprise Value 1.90b / 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 = 9.27% (E(1.47b)/V(1.95b) * Re(7.75%) + D(483.9m)/V(1.95b) * Rd(14.44%) * (1-Tc(0.04)))
Discount Rate = 7.75% (= 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=0.55 | Chg30d=-0.63% | Revisions=+12% | Analysts=7
EPS next Quarter (2026-12-31): EPS=0.57 | Chg30d=-0.19% | Revisions=+12% | Analysts=7
EPS current Year (2027-03-31): EPS=2.24 | Chg30d=-0.13% | Revisions=-12% | GrowthEPS=-5.7% | GrowthRev=+14.9%
EPS next Year (2028-03-31): EPS=2.33 | Chg30d=-0.06% | Revisions=+38% | GrowthEPS=+4.3% | GrowthRev=+13.6%
[Analyst] Revisions Ratio: +17% (up=12, down=8)