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
|Historical stock prices|
|Current Share Price||US$25.68|
|52 Week High||US$12.63|
|52 Week Low||US$28.33|
|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
|CSWC||US Capital Markets||US Market|
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.
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
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|
Is CSWC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CSWC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||2.57|
|Net Profit Margin||79.95%|
How did CSWC perform over the long term?See historical performance and comparison
10.4%Current Dividend Yield
Does 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 benchmarks
Is Capital Southwest undervalued compared to its fair value and its price relative to the market?
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).
How is Capital Southwest forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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%).
How has Capital Southwest performed over the past 5 years?
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.
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 ($467.7M).
Debt to Equity History and Analysis
Debt Level: CSWC's debt to equity ratio (122.7%) is considered high.
Reducing Debt: Insufficient data to determine if CSWC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CSWC's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: CSWC's interest payments on its debt are not well covered by EBIT (3x coverage).
What is Capital Southwest current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CSWC's dividend (10.44%) is higher than the bottom 25% of dividend payers in the US market (1.3%).
High Dividend: CSWC's dividend (10.44%) is in the top 25% of dividend payers in the US market (3.57%)
Stability and Growth of Payments
Stable Dividend: CSWC's dividend payments have been volatile in the past 10 years.
Growing Dividend: CSWC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.9%), CSWC's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Bowen Diehl (52 yo)
Mr. Bowen S. Diehl has been the Chief Executive Officer and President of Capital Southwest Corporation since September 30, 2015. He led the relaunch of Capital Southwest Corporation. Mr. Diehl served as th...
CEO Compensation Analysis
Compensation vs Market: Bowen's total compensation ($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.
Experienced Management: CSWC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: CSWC's board of directors are considered experienced (5.9 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.
Capital Southwest Corporation's employee growth, exchange listings and data sources
- 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
- Capital Southwest Corporation
- Lincoln Center Tower 1
- Suite 1300
- United States
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|
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.