Capital Southwest (CSWC) Stock Overview
A business development company. More details
| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 1/6 |
| Past Performance | 5/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
CSWC Community Fair Values
Create NarrativeSee what 44 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
Capital Southwest Corporation Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$23.54 |
| 52 Week High | US$24.43 |
| 52 Week Low | US$19.37 |
| Beta | 0.74 |
| 1 Month Change | -1.42% |
| 3 Month Change | 6.95% |
| 1 Year Change | 10.46% |
| 3 Year Change | 17.76% |
| 5 Year Change | -9.98% |
| Change since IPO | 497.84% |
Recent News & Updates
Narrative Update • Jun 05
CSWC: Premium Equity Issuance And Joint Venture Expansion Will Shape Returns
Analysts have nudged their average price target for Capital Southwest up by $0.50 to $24.50, citing updated assumptions around discount rates, modestly higher revenue growth, slightly stronger profit margins, and a P/E multiple of about 14x as the key drivers behind the change. Analyst Commentary Recent Street research on Capital Southwest is limited, but the latest published target move provides some insight into how analysts are sizing up the stock around the updated US$24.50 price target and roughly 14x P/E assumption.Seeking Alpha • Jun 01
Capital Southwest: The Dividend Is Secure As NAV Dips
Summary Capital Southwest offers a well-secured 10% base double-digit dividend yield from a diversified, high-quality, first-lien senior secured credit portfolio. NII and NAV per share dipped sequentially in the fiscal 2026 fourth quarter, reflecting industry-wide impacts from rate cuts, not credit quality deterioration. CSWC maintained its monthly dividend and grew its investment portfolio’s fair value to $2.10 billion. Read the full article on Seeking AlphaRecent updates
Narrative Update • Jun 05
CSWC: Premium Equity Issuance And Joint Venture Expansion Will Shape Returns
Analysts have nudged their average price target for Capital Southwest up by $0.50 to $24.50, citing updated assumptions around discount rates, modestly higher revenue growth, slightly stronger profit margins, and a P/E multiple of about 14x as the key drivers behind the change. Analyst Commentary Recent Street research on Capital Southwest is limited, but the latest published target move provides some insight into how analysts are sizing up the stock around the updated US$24.50 price target and roughly 14x P/E assumption.Seeking Alpha • Jun 01
Capital Southwest: The Dividend Is Secure As NAV Dips
Summary Capital Southwest offers a well-secured 10% base double-digit dividend yield from a diversified, high-quality, first-lien senior secured credit portfolio. NII and NAV per share dipped sequentially in the fiscal 2026 fourth quarter, reflecting industry-wide impacts from rate cuts, not credit quality deterioration. CSWC maintained its monthly dividend and grew its investment portfolio’s fair value to $2.10 billion. Read the full article on Seeking AlphaNarrative Update • May 20
CSWC: Fair Outlook Suggests Earnings Guidance And Joint Venture Will Support Returns
Analysts have nudged their price target for Capital Southwest slightly higher to $24.90, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E. This is in line with recent Street research that lifted the stock's target to $24.50.Narrative Update • Apr 26
CSWC: Fair Outlook Suggests Joint Venture And Distributions Will Sustain Returns
Capital Southwest's analyst price target has shifted modestly higher to $24.80 from $24.40, as analysts factor in updated assumptions around revenue growth, profit margins and a slightly adjusted discount rate, informed by recent research that highlights value creation and margin resilience in comparable industrial names. Analyst Commentary Recent Street research on comparable industrial names helps explain why the Capital Southwest price target has edged higher, with analysts updating their models around revenue, margins and required returns.Narrative Update • Apr 12
CSWC: Stable Outlook Suggests Joint Ventures And Distributions Will Support Returns
Analysts have made a modest adjustment to the Capital Southwest price target to $24.40, reflecting updated assumptions around the discount rate and earnings multiple, while keeping the underlying fair value view unchanged. Analyst Commentary Recent research commentary on Capital Southwest sits in the context of broader coverage of credit and industrial names, with analysts updating price targets and refining their views on valuation and execution.Narrative Update • Mar 29
CSWC: Steady Fair Value And New JVs Will Support Future Upside
Analysts have kept Capital Southwest's fair value estimate steady at $24.40, with only modest tweaks to inputs like discount rate and forward P/E that reflect updated sector work, including recent research on CSW Industrials, where analysts cite value creation and solid margins as key reference points. Analyst Commentary Recent research on CSW Industrials is being used as a reference point for Capital Southwest, giving investors some context on how analysts are thinking about value creation, margins, and execution quality when they hold the fair value estimate at $24.40.Narrative Update • Mar 15
CSWC: Stable Fair Value And Supplemental Dividend Will Support Future Upside
The analyst price target for Capital Southwest has been revised slightly, with the current fair value estimate steady at $24.40. Analysts point to relatively unchanged growth, profitability, and forward P/E assumptions as the basis for only a modest adjustment.Narrative Update • Mar 01
CSWC: Lower Discount Rate And Higher P/E Outlook Will Support Upside
The analyst price target for Capital Southwest has increased by $0.40 to $24.40. Analysts attribute this change to modestly higher revenue growth assumptions, a slightly lower discount rate, and an updated future P/E outlook, which are partly offset by a lower projected profit margin.Analysis Article • Nov 06
Capital Southwest Corporation Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next
The quarterly results for Capital Southwest Corporation ( NASDAQ:CSWC ) were released last week, making it a good time...Analysis Article • May 17
Earnings Miss: Capital Southwest Corporation Missed EPS By 15% And Analysts Are Revising Their Forecasts
It's been a good week for Capital Southwest Corporation ( NASDAQ:CSWC ) shareholders, because the company has just...Seeking Alpha • Mar 26
Capital Southwest: A Solid BDC, But This Isn't The Entry Point
Summary Capital Southwest offers a high dividend yield and strong underwriting but is riskier than larger peers like ARCC due to its size and business model. Despite solid fundamentals and attractive valuation, economic uncertainties suggest holding off on new investments in CSWC to avoid potential sharp declines. CSWC's diversified portfolio, primarily in first-lien senior secured loans, provides some protection, but the company remains vulnerable to economic downturns. Existing investors should continue collecting dividends but stay vigilant about macroeconomic trends and be ready to exit if conditions worsen. Read the full article on Seeking AlphaSeeking Alpha • Feb 24
Ride The Fat Dividend Train, +10% Yield: Capital Southwest
Summary I don't buy holdings hoping and praying that they climb in value. I buy holdings to get paid. A promised value increase tomorrow does little for me or you today. Collect income. It's the most powerful resource in the world. Read the full article on Seeking AlphaSeeking Alpha • Feb 17
Capital Southwest: Higher Rates Can Lead To A Higher Premium (Rating Upgrade)
Summary Capital Southwest focuses on generating attractive returns through a diverse portfolio of debt investments, showing meaningful growth in portfolio fair value last quarter. CSWC's Q4 earnings were solid, but non-accrual rates increased to 2.7% of fair portfolio value, raising concerns about credit quality. In addition, PIK income increased. The current dividend yield is around 10.8% and is fully supported by net investment income. Despite the rise in non-accruals, CSWC's overall performance and dividend yield remain attractive for investors seeking income. Read the full article on Seeking AlphaSeeking Alpha • Jan 14
Capital Southwest: Good For Income, Questionable For Superior Returns
Summary Over the past couple of quarters, CSWC has lagged behind the market. While CSWC is somewhat similar to MAIN, the return divergence between the two has been massive. By taking a closer look at the recent earnings report, I see an interesting opportunity for income investors to lock in high and durable yield. Yet, I am skeptical about CSWC's ability to produce solid total returns. Read the full article on Seeking AlphaSeeking Alpha • Dec 18
Capital Southwest: Time To Pull The Buy Trigger (Upgrade)
Summary Capital Southwest's stock correction, triggered by higher non-accruals and lower net investment income, presents a buying opportunity at $21.50 for passive income investors. Despite the increased non-accrual ratio, Capital Southwest's First Lien portfolio grew to $1.4 billion, with cash interest collection up 2% QoQ. The base dividend was raised to $0.58 per share, but the rising dividend pay-out ratio to 100% raises concerns about future supplemental dividends. To restore investor confidence, Capital Southwest needs to lower its non-accrual ratio, avoid dilutive convertibles, and improve its dividend pay-out ratio to 80-85%. Read the full article on Seeking AlphaSeeking Alpha • Dec 06
Capital Southwest: Buying The Dip Despite Dividend Risks
Summary Capital Southwest is an internally managed BDC with a diversified portfolio, primarily focused on first-lien debt, offering a 10% regular dividend yield. Despite recent stock price volatility and increased non-accruals, CSWC's long-term value creation has provided my portfolio with attractive returns. Lower interest rates could improve the Company's equity investments and credit situation, but dynamic rate cuts may pressure dividend coverage, potentially reducing yield-on-cost. I prepared a sensitivity analysis of CSWC's dividend coverage considering different Fed-related scenarios to help you examine the risk yourself. Read the full article on Seeking AlphaSeeking Alpha • Nov 11
Buy The Dip With +10% Yield: Capital Southwest
Summary Panic selling is a terrible way to destroy your income stream, and retirees are often guilty of this practice. We review the recent earnings and dip to see if the sell-off is overdone. I collect income from all corners of the economy to fund my retirement. Read the full article on Seeking AlphaSeeking Alpha • Nov 05
Capital Southwest: Mediocre Quarter? Don't Ignore The Growth
Summary Capital Southwest's recent earnings report showed a decline in net investment income and total investment income, but impressive portfolio growth and solid credit quality. Despite a slight drop in NAV, this grew on an absolute basis. Their balance sheet remains strong with significant liquidity and one of the lowest leverages amongst their peers. Investors should wait for a pullback to around $18 or below for a better entry point, as the stock is currently expensive. Capital Southwest remains a top BDC due to its high-quality investments and resilience in a competitive market. If interest rates continue to lower as expected, I suspect investors may get a better entry price in the next 6 - 12 months. Read the full article on Seeking AlphaSeeking Alpha • Oct 17
Capital Southwest: High Quality And Stable 10% Yield At The Right Time
Summary Capital Southwest is a top-tier BDC, offering a high-quality 10% yield. The data points from the previous earnings report clearly confirm this. In the article, I emphasize the most important advantages of CSWC (based on recent earnings data) that long-term investors have to take into account. Plus, I explain in more detail what could be the key drivers for CSWC's solid performance going forward. Read the full article on Seeking AlphaSeeking Alpha • Sep 16
Capital Southwest: 10% Quality Yield Has Its Price
Summary Capital Southwest is a well-managed BDC with a focus on highly collateralized First Liens, offering a well-covered 10% yield and robust net investment income. Despite a 50% premium to net asset value, the quality of Capital Southwest's credit portfolio and consistent supplementary dividends justify the investment for passive income seekers. The BDC's net investment income surged 25% YoY due to substantial investments in floating-rate loans, though future growth may moderate with potential interest rate cuts. Capital Southwest's dividend payout metrics show a high margin of safety, with a stable $0.06 supplementary dividend and a leading dividend yield of 10.3%. Read the full article on Seeking Alpha
New Narrative • Sep 15
Calculated Leverage And Diversified Investments Propel Revenue And Secure Margins
Emphasis on strategic risk management and targeted investments in lower-middle-market companies indicate a conservative yet growth-oriented approach.Seeking Alpha • Aug 22
My 10% Yield Keeps Growing: Capital Southwest
Summary My income stream keeps growing, enabling my portfolio to keep rapidly growing. Capital Southwest hiked its dividend once more and continues to show its strength in the face of a recession. Meet your expenses head-on, with recurring income, instead of destroying your portfolio slowly. Read the full article on Seeking AlphaSeeking Alpha • Aug 16
Capital Southwest: Looking To Add But Waiting For A Further Drop In Price
Summary Capital Southwest's share price has pulled back due to expected interest rate declines, but still trades at a P/NAV of 1.44x, significantly higher than some peers like ARCC & BXSL. CSWC saw strong growth year-over-year, their portfolio value increasing double-digits. Management has also taken a more defensive posture with increased exposure to first-lien loans. Although dividend coverage is strong, and they're well-prepared for potential volatility, Capital Southwest remains a hold with potential to buy on a further price drop. If we enter into a recession, CSWC could see a rise in PIK income and non-accruals, impacting their financials going forward. CSWC has nearly doubled their cash position, which indicates they could be preparing for a downturn in the economy. Read the full article on Seeking AlphaShareholder Returns
| CSWC | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -0.3% | -0.5% | -3.3% |
| 1Y | 10.5% | 9.0% | 22.3% |
Return vs Industry: CSWC exceeded the US Capital Markets industry which returned 7.7% over the past year.
Return vs Market: CSWC underperformed the US Market which returned 22.5% over the past year.
Price Volatility
| CSWC volatility | |
|---|---|
| CSWC Average Weekly Movement | 2.8% |
| Capital Markets Industry Average Movement | 3.6% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: CSWC has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: CSWC's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1961 | 36 | Michael Sarner | www.capitalsouthwest.com |
Capital Southwest Corporation is a business development company. The firm specializes in credit and private equity and venture capital investments in lower middle market companies, mezzanine, later stage, mature, late venture, emerging growth, buyouts, industry consolidation, recapitalizations and growth capital investments. The firm 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.
Capital Southwest Corporation Fundamentals Summary
| CSWC fundamental statistics | |
|---|---|
| Market cap | US$1.45b |
| Earnings (TTM) | US$111.78m |
| Revenue (TTM) | US$232.11m |
13.1x
P/E Ratio6.3x
P/S RatioIs CSWC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CSWC income statement (TTM) | |
|---|---|
| Revenue | US$232.11m |
| Cost of Revenue | US$0 |
| Gross Profit | US$232.11m |
| Other Expenses | US$120.33m |
| Earnings | US$111.78m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.80 |
| Gross Margin | 100.00% |
| Net Profit Margin | 48.16% |
| Debt/Equity Ratio | 111.9% |
How did CSWC perform over the long term?
See historical performance and comparisonDividends
10.9%
Current Dividend Yield117%
Payout RatioDoes CSWC pay a reliable dividends?
See CSWC dividend history and benchmarks| Capital Southwest dividend dates | |
|---|---|
| Ex Dividend Date | Jun 15 2026 |
| Dividend Pay Date | Jun 30 2026 |
| Days until Ex dividend | 4 days |
| Days until Dividend pay date | 19 days |
Does CSWC pay a reliable dividends?
See CSWC dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/09 16:46 |
| End of Day Share Price | 2026/06/09 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2026/03/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
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.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Capital Southwest Corporation is covered by 10 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Bryce Rowe | Baird |
| Mitchel Penn | Brean Capital Historical (Janney Montgomery) |
| Sean-Paul Adams | B. Riley Securities, Inc. |