(CSWC) Capital Southwest - Overview
Stock: Credit, Equity, Debt, Growth, Buyouts
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 12.74% |
| Yield on Cost 5y | 27.26% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 35.6% |
| Payout Ratio | 35.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 18.6% |
| Relative Tail Risk | 3.25% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.53 |
| Alpha | 1.94 |
| Character TTM | |
|---|---|
| Beta | 0.822 |
| Beta Downside | 0.938 |
| Drawdowns 3y | |
|---|---|
| Max DD | 27.74% |
| CAGR/Max DD | 0.72 |
Description: CSWC Capital Southwest January 19, 2026
Capital Southwest Corporation (NASDAQ: CSWC) is a business-development company that focuses on credit-linked and private-equity investments in lower-middle-market firms. Its mandate covers mezzanine, later-stage, and mature growth-capital deals, typically structured as unitranche, senior, or subordinated debt, as well as preferred and common equity. The firm avoids startups, public equities, real-estate, oil-and-gas exploration, distressed turnarounds, and any transaction where senior management is exiting, and it limits equity co-investments to ≤20 % of the total check while staying non-controlling.
As of the latest filing (Q4 2023), CSWC reported approximately $1.2 billion in assets under management, a net asset value (NAV) per share of roughly $18.70, and an annualized dividend yield near 7.5 %, reflecting its high-yield BDC model. The company’s performance is sensitive to three macro drivers: (1) the health of the U.S. lower-middle-market M&A pipeline, which has been expanding at a 4-5 % YoY rate; (2) the level of corporate credit spreads, which dictate the risk-adjusted return on its unitranche and senior debt positions; and (3) interest-rate trends, because higher rates can compress the spread between its borrowing costs and the yields earned on portfolio assets. Recent sector focus on industrial automation, specialty chemicals, and SaaS-enabled business services aligns with a broader shift toward digital transformation and supply-chain resiliency, sectors that have seen earnings growth averaging 9 % YoY over the past two years.
For a deeper quantitative view of CSWC’s risk-adjusted return profile and peer comparison, you might explore the ValueRay analytics platform.
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income: 102.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA 13.08 > 1.0 |
| NWC/Revenue: -86.20% < 20% (prev 48.67%; Δ -134.9% < -1%) |
| CFO/TA -0.03 > 3% & CFO -69.7m > Net Income 102.7m |
| Net Debt (372.3m) to EBITDA (142.1m): 2.62 < 3 |
| Current Ratio: 0.19 > 1.5 & < 3 |
| Outstanding Shares: last quarter (66.8m) vs 12m ago 23.50% < -2% |
| Gross Margin: 77.38% > 18% (prev 0.66%; Δ 7672 % > 0.5%) |
| Asset Turnover: 11.46% > 50% (prev 9.92%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: 2.09 > 6 (EBITDA TTM 142.1m / Interest Expense TTM 64.5m) |
Altman Z'' -0.26
| A: -0.09 (Total Current Assets 42.6m - Total Current Liabilities 226.5m) / Total Assets 2.12b |
| B: -0.04 (Retained Earnings -76.5m / Total Assets 2.12b) |
| C: 0.07 (EBIT TTM 135.2m / Avg Total Assets 1.86b) |
| D: -0.05 (Book Value of Equity -61.6m / Total Liabilities 1.12b) |
| Altman-Z'' Score: -0.26 = B |
Beneish M -2.82
| DSRI: 0.99 (Receivables 41.9m/31.5m, Revenue 213.4m/159.1m) |
| GMI: 0.85 (GM 77.38% / 65.77%) |
| AQI: 1.03 (AQ_t 0.98 / AQ_t-1 0.95) |
| SGI: 1.34 (Revenue 213.4m / 159.1m) |
| TATA: 0.08 (NI 102.7m - CFO -69.7m) / TA 2.12b) |
| Beneish M-Score: -2.82 (Cap -4..+1) = A |
What is the price of CSWC shares?
Over the past week, the price has changed by -1.07%, over one month by +2.59%, over three months by +17.14% and over the past year by +14.92%.
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 | 24.3 | 4.6% |
| Analysts Target Price | 24.3 | 4.6% |
| ValueRay Target Price | 29.7 | 27.9% |
CSWC Fundamental Data Overview February 07, 2026
P/E Forward = 10.9051
P/S = 6.1052
P/B = 1.4019
P/EG = 12.5538
Revenue TTM = 213.4m USD
EBIT TTM = 135.2m USD
EBITDA TTM = 142.1m 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 = 1.75b USD (1.38b + Debt 414.8m - CCE 44.2m)
Interest Coverage Ratio = 2.09 (Ebit TTM 135.2m / Interest Expense TTM 64.5m)
EV/FCF = -25.55x (Enterprise Value 1.75b / FCF TTM -68.7m)
FCF Yield = -3.91% (FCF TTM -68.7m / Enterprise Value 1.75b)
FCF Margin = -32.19% (FCF TTM -68.7m / Revenue TTM 213.4m)
Net Margin = 48.14% (Net Income TTM 102.7m / Revenue TTM 213.4m)
Gross Margin = 77.38% ((Revenue TTM 213.4m - Cost of Revenue TTM 48.3m) / Revenue TTM)
Gross Margin QoQ = none% (prev 69.43%)
Tobins Q-Ratio = 0.83 (Enterprise Value 1.75b / Total Assets 2.12b)
Interest Expense / Debt = 4.35% (Interest Expense 18.1m / Debt 414.8m)
Taxrate = 0.22% (71.0k / 33.0m)
NOPAT = 134.9m (EBIT 135.2m * (1 - 0.22%))
Current Ratio = 0.19 (Total Current Assets 42.6m / Total Current Liabilities 226.5m)
Debt / Equity = 0.42 (Debt 414.8m / totalStockholderEquity, last quarter 995.6m)
Debt / EBITDA = 2.62 (Net Debt 372.3m / EBITDA 142.1m)
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 = 5.52% (Net Income 102.7m / Total Assets 2.12b)
RoE = 11.14% (Net Income TTM 102.7m / Total Stockholder Equity 922.4m)
RoCE = 12.15% (EBIT 135.2m / Capital Employed (Equity 922.4m + L.T.Debt 190.6m))
RoIC = 6.98% (NOPAT 134.9m / Invested Capital 1.93b)
WACC = 7.89% (E(1.38b)/V(1.80b) * Re(8.95%) + D(414.8m)/V(1.80b) * Rd(4.35%) * (1-Tc(0.00)))
Discount Rate = 8.95% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 26.89%
Fair Price DCF = unknown (Cash Flow -68.7m)
EPS Correlation: 28.03 | EPS CAGR: 6.80% | SUE: 0.53 | # QB: 0
Revenue Correlation: 81.94 | Revenue CAGR: 21.04% | SUE: 0.25 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.56 | Chg30d=-0.003 | Revisions Net=+1 | Analysts=6
EPS next Year (2027-03-31): EPS=2.24 | Chg30d=-0.006 | Revisions Net=+1 | Growth EPS=-6.2% | Growth Revenue=+9.6%