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NASDAQ: CSWC
Capital Southwest Corp Stock

$19.63+0.28 (+1.45%)
Updated Jun 8, 2023
CSWC Price
$19.63
Fair Value Price
$20.32
Market Cap
$720.87M
52 Week Low
$16.28
52 Week High
$21.55
P/E
17.85x
P/B
1.22x
P/S
4.47x
PEG
0.22x
Dividend Yield
11.61%
Revenue
$119.30M
Earnings
$33.09M
Gross Margin
100%
Operating Margin
33.58%
Profit Margin
27.7%
Debt to Equity
1.13
Operating Cash Flow
-$227M
Beta
0.73
Next Earnings
Jul 31, 2023
Ex-Dividend
Jun 14, 2023
Next Dividend
Jun 30, 2023

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. 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. The investment structures are Unitranche debt, subordinated debt, senior debt, first and second lien debt, and preferred and common equity. The firm makes equity co-investments alongside debt investments, up to 20% of total check and only makes non-control investments. It prefers to invest in Industrial manufacturing and services, value-added distribution, healthcare products and services, business services, specialty chemicals, food and beverage, tech-enabled services and SaaS models. The firm seeks to invest in energy services and products, industrial technologies, and specialty chemicals and products. Within energy services and products, the firm seeks to invest in each segment of the industry, including upstream, midstream and downstream, excluding exploration and production with a focus on differentiated products and services, equipment and tool rental, consumable products, and drilling and completion chemicals. Within industrial technologies, it seeks to invest in automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring and testing, professional tools, and sensors and instrumentation. Within and specialty chemicals and products, the firm seeks to invest in businesses that develop and manufacture highly differentiated chemicals and products including adhesives, coatings and sealants, catalysts and absorbents, cosmeceuticals, fine chemicals, flavors and fragrances, performance lubricants, polymers, plastics and composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, specified high performance materials for fire protection and oilfield applications. It may also invest in exceptional opportunities in building products. The firm seeks to invest in the United States. The firm seeks to make investments ranging from $5 to $25 million in securities. It seeks to make equity investments ranging from $5 million to $50 million and debt investments between $5 million and $20 million and co-invest in transaction size up to $40 million. It prefers to invest in companies with revenues approaching above $10 million, profitable operations, historical growth rate of at least 15 percent per year. Within the lower middle market, it seeks to invest in with less than $15 million in EBITDA and also opportunistically invests in the upper middle market, generally defined as companies with EBITDA in excess of $50 million. In addition to making direct investments, the firm allocates capital to syndicated first and second lien term loans in the upper middle market. Criteria for Upper Middle Market Syndicated 1st Lien is EBITDA Size more than $30 million, Closing Leverage greater than 4 times, investment hold size between $5 million and $7 million, investment yield greater than 6.5%. Criteria for Upper Middle Market Syndicated 2nd Lien is EBITDA Size more than $50 million, Closing Leverage greater than 6 times, investment hold size between $5 million and $7 million, investment yield greater than 9%. It prefers to take a majority and minority stake. The firm has the flexibility to hold investments for very long period in its portfolio companies. It may also invest through warrants. The firm prefers to take Board participation in its portfolio companies. Capital Southwest Corporation was founded on April 19, 1961 and is based in Dallas, Texas.

Zen Score

Industry Average (29)
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Due Diligence Checks

CSWC ($19.63) is undervalued by 3.4% relative to our estimate of its Fair Value price of $20.32 based on Discounted Cash Flow (DCF) modelling, but does not have a significant margin of safety
Below Fair Value Valuation
CSWC ($19.63) is not significantly undervalued (3.4%) relative to our estimate of its Fair Value price of $20.32 based on Discounted Cash Flow (DCF) modelling, when including a healthy margin of safety
Significantly Below Fair Value Valuation
CSWC ($19.63) is trading below... subscribe to Premium to read more.
Below Benjamin Graham Formula Value Valuation
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CSWC News

Valuation

CSWC fair value

Fair Value of CSWC stock based on Discounted Cash Flow (DCF)
Price
$19.63
Fair Value
$20.32
Undervalued by
3.40%
CSWC ($19.63) is undervalued by... subscribe to Premium to read more.
Below Fair Value Valuation
CSWC ($19.63) is not significantly... subscribe to Premium to read more.
Significantly Below Fair Value Valuation
CSWC ($19.63) is trading below... subscribe to Premium to read more.
Below Benjamin Graham Formula Value Valuation

CSWC price to earnings (PE)

For valuing profitable companies with steady earnings
Company
17.85x
Industry
53.13x
Market
52.58x
CSWC is good value based... subscribe to Premium to read more.
P/E vs Industry Valuation
CSWC is good value based... subscribe to Premium to read more.
P/E vs Market Valuation

CSWC price to book (PB)

For valuing companies that are loss-making or have lots of physical asset
Company
1.22x
Industry
2.05x
CSWC is good value based... subscribe to Premium to read more.
P/B vs Industry Valuation

CSWC price to earnings growth (PEG)

For valuing profitable companies with growth potential
CSWC is good value based... subscribe to Premium to read more.
PEG Value Valuation

CSWC's financial health

Profit margin

Revenue
$37.2M
Net Income
$18.2M
Profit Margin
48.9%
CSWC's profit margin has decreased... subscribe to Premium to read more.
Profit Margin Growth Financials

Assets to liabilities

Assets
$1.3B
Liabilities
$667.3M
Debt to equity
1.13
CSWC's debt has increased relative... subscribe to Premium to read more.
Shrinking Debt Financials
CSWC's debt to equity ratio... subscribe to Premium to read more.
Healthy Debt to Equity Financials

Cash flow

Operating
-$33.5M
Investing
-$122.0k
Financing
$33.5M

CSWC vs Asset Management Stocks

TickerMarket Cap1d %P/EP/B
CSWC$720.87M+1.45%17.85x1.22x
CGBD$748.72M+0.07%9.57x0.82x
SLRC$788.86M-0.82%32.13x0.80x
TCPC$644.10M+1.00%1,115.00x0.86x
MFIC$818.80M-0.32%7.49x0.82x

Capital Southwest Stock FAQ

What is Capital Southwest's quote symbol?

(NASDAQ: CSWC) Capital Southwest trades on the NASDAQ under the ticker symbol CSWC. Capital Southwest stock quotes can also be displayed as NASDAQ: CSWC.

If you're new to stock investing, here's how to buy Capital Southwest stock.

What is the 52 week high and low for Capital Southwest (NASDAQ: CSWC)?

(NASDAQ: CSWC) Capital Southwest's 52-week high was $21.55, and its 52-week low was $16.28. It is currently -8.91% from its 52-week high and 20.58% from its 52-week low.

How much is Capital Southwest stock worth today?

(NASDAQ: CSWC) Capital Southwest currently has 36,722,665 outstanding shares. With Capital Southwest stock trading at $19.63 per share, the total value of Capital Southwest stock (market capitalization) is $720.87M.

Capital Southwest stock was originally listed at a price of $23.00 in Dec 31, 1997. If you had invested in Capital Southwest stock at $23.00, your return over the last 25 years would have been -14.65%, for an annualized return of -0.63% (not including any dividends or dividend reinvestments).

How much is Capital Southwest's stock price per share?

(NASDAQ: CSWC) Capital Southwest stock price per share is $19.63 today (as of Jun 8, 2023).

What is Capital Southwest's Market Cap?

(NASDAQ: CSWC) Capital Southwest's market cap is $720.87M, as of Jun 9, 2023.

Market cap (market capitalization) is the total market value of a publicly traded company's outstanding shares.

Capital Southwest's market cap is calculated by multiplying CSWC's current stock price of $19.63 by CSWC's total outstanding shares of 36,722,665.
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