Financial Services -
Asset Management - NASDAQ - US
$ 18.7
-5.46 %
$ 946 M
Market Cap
13.36
P/E
1. INTRINSIC VALUE
Balance Sheet
Capital Southwest Corporation
| Current Assets | 62.8 M |
| Cash & Short-Term Investments | 32.3 M |
| Receivables | 30.2 M |
| Other Current Assets | 352 K |
| Non-Current Assets | 1.49 B |
| Long-Term Investments | 1.48 B |
| PP&E | 2.4 M |
| Other Non-Current Assets | 13.8 M |
| Current Liabilities | 562 K |
| Accounts Payable | 0 |
| Short-Term Debt | 0 |
| Other Current Liabilities | 562 K |
| Non-Current Liabilities | 801 M |
| Long-Term Debt | 774 M |
| Other Non-Current Liabilities | 27.2 M |
EFFICIENCY
Earnings Waterfall
Capital Southwest Corporation
| Revenue | 178 M |
| Cost Of Revenue | 0 |
| Gross Profit | 178 M |
| Operating Expenses | 24.1 M |
| Operating Income | 158 M |
| Other Expenses | 75 M |
| Net Income | 83.4 M |
RATIOS
FREE CASH FLOW ANALYSIS
Free Cash Flow Analysis
Capital Southwest Corporation
| Net Income | 83.4 M |
| Depreciation & Amortization | 4.3 M |
| Capital Expenditures | -13 K |
| Stock-Based Compensation | 0 |
| Change in Working Capital | -3.86 M |
| Others | -276 M |
| Free Cash Flow | -189 M |
Wall Street Analysts Price Targets
Capital Southwest Corporation
Wall Street analysts predict an average 1-year price target for CSWC of $25.3 , with forecasts ranging from
a
low of
$23 to a high of $26.5 .
CSWC Lowest Price Target
Wall Street Target
23 USD
22.99%
CSWC Average Price Target
Wall Street Target
25.3 USD
35.22%
CSWC Highest Price Target
Wall Street Target
26.5 USD
41.71%
4. DIVIDEND
ANALYSIS
2.99%
DIVIDEND YIELD
0.64 USD
DIVIDEND PER SHARE
5. COMPETITION
6. Ownership
Insider Ownership
Capital Southwest Corporation
Sold
0-3 MONTHS
0 USD 0
3-6 MONTHS
0 USD 0
6-9 MONTHS
0 USD 0
9-12 MONTHS
0 USD 0
Bought
10.1 K USD 1
0-3 MONTHS
23.1 K USD 2
3-6 MONTHS
16 K USD 2
6-9 MONTHS
271 K USD 3
9-12 MONTHS
7. News
Capital Southwest: Buy The Dip (Rating Upgrade)
Extreme fear is driving the market, but Capital Southwest remains an attractive buy due to its strong fundamentals and conservative U.S.-focused portfolio. CSWC's internal management structure aligns with shareholder interests, maintaining low operating expenses and a robust 12.9% dividend yield. Trading at a 1.19x price-to-NAV ratio, CSWC is undervalued compared to peers, offering a compelling entry point for value and income investors.
seekingalpha.com
- 3 days ago
Capital Southwest: Technical Strength, Attractive Dividend Yield - Initiate With Buy
Capital Southwest's chart remains bearish, but the moving averages and indicators show a bullish technical outlook for CSWC stock. Most recent earnings were mixed as prepayment and fees boosted total investment income while losses are piling up in their investments. The P/B ratio's contraction since mid-2024 is justified as confidence has weakened and so the stock is near fair valuation currently.
seekingalpha.com
- 1 week ago
Let's Talk Mortgage REITs (But Not For Too Long)
A bunch of mortgage REITs were severely overvalued. Now they are less overvalued. But some others are actually bargains. Tons of charts because images are fun. Ellington Financial's higher price-to-book ratio may be due to lower volatility in the total economic return by period. Digital Realty Trust deserves to be mocked. I am reporting for duty!
seekingalpha.com
- 2 weeks ago
Capital Southwest: A Solid BDC, But This Isn't The Entry Point
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.
seekingalpha.com
- 2 weeks ago
I'm Buying Up To 11% Yield For Recurring Income
Income investing offers flexibility and peace of mind, with Capital Southwest and Kimco Realty providing high yields and diversification for retail investors. Capital Southwest, an internally managed BDC, carries an 11.5% yield, a conservative first-lien-heavy portfolio, and strong fundamentals, making it an attractive buy. Kimco Realty, the largest U.S. shopping center REIT, offers a stable 4.7% yield, strong leasing activity, and strategic growth through acquisitions and capital recycling.
seekingalpha.com
- 2 weeks ago
Capital Southwest Receives Affirmed Investment Grade Rating from Moody's Investors Service
DALLAS, March 25, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced that Moody's Investors Service, Inc. (“Moody's”) has affirmed Capital Southwest's investment grade long-term issuer rating of Baa3 with a stable outlook. Factors cited by Moody's in support of its rating include Capital Southwest's strong capitalization and diverse funding profile, first-lien oriented investment portfolio, recurring earnings generation, and internally managed structure.
globenewswire.com
- 2 weeks ago
My Dividend Stock Portfolio: New February Dividend Record - 100 Holdings With 11 Buys
February investments fell below $1,000, mainly in BDCs like Owl Rock Capital and Ares Capital, boosting annual dividend income by $77. Dividend income hit a new February record of $505, up 5% Y/Y driven by organic dividend growth. Focus remains firmly on maintaining rising BDC dividends and achieving a monthly increase of at least $100 in dividend income.
seekingalpha.com
- 3 weeks ago
Forget Growth: 5 Big Safe Yields Worth Considering
The stock market has been ugly (particularly growth stocks), and it could get much worse. Thankfully, however, there is another way. Income investing focuses on big, steady dividend and interest payments, thereby allowing investors to worry far less about price volatility (as long as those big income payments keep coming in). This report shares 5 big safe yield strategies (including a variety of top income ideas), and then concludes with an important takeaway about succeeding in this market.
seekingalpha.com
- 4 weeks ago
54 Upcoming Dividend Increases, Including A King
This week features the largest list of dividend increases ever, with 50 companies, including Coca-Cola extending its 63-year streak with a 5.2% increase. My strategy focuses on companies with consistent dividend growth and outperforming benchmarks, using data from the "U.S. Dividend Champions" spreadsheet and NASDAQ. I recommend the Schwab U.S. Dividend Equity ETF for broad U.S. equity exposure and the Cohen & Steers REIT & Preferred Income Fund for REITs.
seekingalpha.com
- 1 month ago
An Important Warning For BDC Investors
Why BDCs may be entering a dangerous phase. Avoid these risks before it's too late. One BDC stands out as a safe bet, and is my top pick right now.
seekingalpha.com
- 1 month ago
9% Yields From Baby Bonds
Yield to maturity is crucial in baby bond analysis. Yield to call can also be relevant when call risk is more relevant. We're starting with a hypothetical for demonstrating a key point, then we'll look at two baby bonds as they are trading today. Market inefficiencies can arise from liquidity issues, creating trading opportunities between similar preferred shares or baby bonds.
seekingalpha.com
- 1 month ago
Capital Southwest: Long-Term Bullish, But Not Adding Here
Capital Southwest remains a top BDC for income, with strong financials and portfolio growth, despite a high premium and limited short-term upside. The latest earnings report showed a beat on the top and bottom lines, solid dividend coverage, and increased first-lien loan exposure. Non-accruals are slightly high, but the portfolio quality and liquidity position suggest resilience against economic volatility.
seekingalpha.com
- 1 month ago
8. Profile
Summary
Capital Southwest Corporation CSWC
COUNTRY
US
INDUSTRY
Asset Management
MARKET CAP
$ 946 M
Dividend Yield
2.99%
Description
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.
Contact
8333 Douglas Avenue, Dallas, TX, 75225
https://www.capitalsouthwest.com
IPO
Date
March 17, 1980
Employees
27
Officers
Ms. Ally Benson
Assistant Controller
Mr. Bowen S. Diehl
Advisor
Mr. Chris Rehberger
Chief Financial Officer, Treasurer & Secretary
Ms. Tabitha Geiger
Chief Compliance Officer
Mr. Spencer Klein
Principal
Mr. James Stafford
Accounting Senior Manager
Ms. Amy Baker CPA
Controller
Mr. Michael Scott Sarner CPA, CPA
Chief Executive Officer, President & Director
Mr. Joshua S. Weinstein CFA
Senior MD & Chief Investment Officer
Mr. Ryan Kelly
Managing Director