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CSWC

Capital SouthwestNasdaqGS:CSWC Stock Report

Market Cap

US$570.1m

7D

0.4%

1Y

74.9%

Updated

27 Sep, 2021

Data

Company Financials +
CSWC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health1/6
Dividends4/6

CSWC Overview

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments.

Capital Southwest Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Capital Southwest
Historical stock prices
Current Share PriceUS$25.68
52 Week HighUS$12.63
52 Week LowUS$28.33
Beta1.27
1 Month Change-2.73%
3 Month Change8.72%
1 Year Change74.93%
3 Year Change33.33%
5 Year Change73.28%
Change since IPO323.59%

Recent News & Updates

Shareholder Returns

CSWCUS Capital MarketsUS Market
7D0.4%3.6%2.0%
1Y74.9%63.3%32.8%

Return vs Industry: CSWC exceeded the US Capital Markets industry which returned 63.3% over the past year.

Return vs Market: CSWC exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is CSWC's price volatile compared to industry and market?
CSWC volatility
CSWC Beta1.27
Industry Beta1.19
Market Beta1

Stable Share Price: CSWC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CSWC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196121Bowen Diehlhttps://www.capitalsouthwest.com

Capital Southwest Corporation is a business development company specializing in credit and private equity and venture capital investments in middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, recapitalizations and growth capital investments. It does not invest in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies in which significant senior management is departing. In lower middle market, the firm typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations.

Capital Southwest Fundamentals Summary

How do Capital Southwest's earnings and revenue compare to its market cap?
CSWC fundamental statistics
Market CapUS$570.09m
Earnings (TTM)US$57.15m
Revenue (TTM)US$71.48m

10.0x

P/E Ratio

8.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSWC income statement (TTM)
RevenueUS$71.48m
Cost of RevenueUS$0
Gross ProfitUS$71.48m
ExpensesUS$14.33m
EarningsUS$57.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.57
Gross Margin100.00%
Net Profit Margin79.95%
Debt/Equity Ratio122.7%

How did CSWC perform over the long term?

See historical performance and comparison

Dividends

10.4%

Current Dividend Yield

58%

Payout Ratio

Does CSWC pay a reliable dividends?

See CSWC dividend history and benchmarks
When do you need to buy CSWC by to receive an upcoming dividend?
Capital Southwest dividend dates
Ex Dividend DateDec 14 2021
Dividend Pay DateDec 31 2021
Days until Ex dividend77 days
Days until Dividend pay date94 days

Does CSWC pay a reliable dividends?

See CSWC dividend history and benchmarks

Valuation

Is Capital Southwest undervalued compared to its fair value and its price relative to the market?

5.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSWC ($25.68) is trading below our estimate of fair value ($27.19)

Significantly Below Fair Value: CSWC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CSWC is good value based on its PE Ratio (10x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: CSWC is good value based on its PE Ratio (10x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CSWC is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CSWC is good value based on its PB Ratio (1.5x) compared to the US Capital Markets industry average (61.3x).


Future Growth

How is Capital Southwest forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSWC's forecast earnings growth (8.4% per year) is above the savings rate (2%).

Earnings vs Market: CSWC's earnings (8.4% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: CSWC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSWC's revenue (12.9% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CSWC's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSWC's Return on Equity is forecast to be low in 3 years time (11.2%).


Past Performance

How has Capital Southwest performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSWC has a high level of non-cash earnings.

Growing Profit Margin: CSWC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CSWC has become profitable over the past 5 years, growing earnings by 0.8% per year.

Accelerating Growth: CSWC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CSWC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (78.6%).


Return on Equity

High ROE: CSWC's Return on Equity (15.5%) is considered low.


Financial Health

How is Capital Southwest's financial position?


Financial Position Analysis

Short Term Liabilities: CSWC's short term assets ($33.8M) exceed its short term liabilities ($298.0K).

Long Term Liabilities: CSWC's short term assets ($33.8M) do not cover its long term liabilities ($467.7M).


Debt to Equity History and Analysis

Debt Level: CSWC's debt to equity ratio (122.7%) is considered high.

Reducing Debt: Insufficient data to determine if CSWC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CSWC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CSWC's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is Capital Southwest current dividend yield, its reliability and sustainability?

10.44%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 28 2021Ex Dividend DateDec 14 2021Dividend Pay DateDec 31 202117 days from Ex DividendBuy in the next 77 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CSWC's dividend (10.44%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: CSWC's dividend (10.44%) is in the top 25% of dividend payers in the US market (3.57%)


Stability and Growth of Payments

Stable Dividend: CSWC's dividend payments have been volatile in the past 10 years.

Growing Dividend: CSWC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.9%), CSWC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Bowen Diehl (52 yo)

6yrs

Tenure

US$2,581,472

Compensation

Mr. Bowen S. Diehl has been the Chief Executive Officer and President of Capital Southwest Corporation since September 30, 2015. He led the relaunch of Capital Southwest Corporation. Mr. Diehl served as th...


CEO Compensation Analysis

Compensation vs Market: Bowen's total compensation ($USD2.58M) is above average for companies of similar size in the US market ($USD1.68M).

Compensation vs Earnings: Bowen's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CSWC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CSWC's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CSWC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Company Information

Capital Southwest Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Capital Southwest Corporation
  • Ticker: CSWC
  • Exchange: NasdaqGS
  • Founded: 1961
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$570.095m
  • Shares outstanding: 22.20m
  • Website: https://www.capitalsouthwest.com

Number of Employees


Location

  • Capital Southwest Corporation
  • Lincoln Center Tower 1
  • Suite 1300
  • Dallas
  • Texas
  • 75240
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:53
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.