| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 4/6 |
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.
Rewards
Risk Analysis
Capital Southwest Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$25.68 |
| 52 Week High | US$12.63 |
| 52 Week Low | US$28.33 |
| Beta | 1.27 |
| 1 Month Change | -2.73% |
| 3 Month Change | 8.72% |
| 1 Year Change | 74.93% |
| 3 Year Change | 33.33% |
| 5 Year Change | 73.28% |
| Change since IPO | 323.59% |
Recent News & Updates
Shareholder Returns
| CSWC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | 0.4% | 3.6% | 2.0% |
| 1Y | 74.9% | 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
| CSWC volatility | |
|---|---|
| CSWC Beta | 1.27 |
| Industry Beta | 1.19 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1961 | 21 | Bowen Diehl | https://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
| CSWC fundamental statistics | |
|---|---|
| Market Cap | US$570.09m |
| Earnings (TTM) | US$57.15m |
| Revenue (TTM) | US$71.48m |
10.0x
P/E Ratio8.0x
P/S RatioIs CSWC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CSWC income statement (TTM) | |
|---|---|
| Revenue | US$71.48m |
| Cost of Revenue | US$0 |
| Gross Profit | US$71.48m |
| Expenses | US$14.33m |
| Earnings | US$57.15m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 2.57 |
| Gross Margin | 100.00% |
| Net Profit Margin | 79.95% |
| Debt/Equity Ratio | 122.7% |
How did CSWC perform over the long term?
See historical performance and comparisonDividends
10.4%
Current Dividend Yield58%
Payout RatioDoes CSWC pay a reliable dividends?
See CSWC dividend history and benchmarks| Capital Southwest dividend dates | |
|---|---|
| Ex Dividend Date | Dec 14 2021 |
| Dividend Pay Date | Dec 31 2021 |
| Days until Ex dividend | 77 days |
| Days until Dividend pay date | 94 days |
Does CSWC pay a reliable dividends?
See CSWC dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 22:53 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
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.