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CSWC
Capital Southwest Corporation
$23.5
-0.02
(-0.09%)
| Exchange: | NASDAQ |
| Market Cap: | 1.46B |
| Shares Outstanding: | 15.068M |
Delayed data
About The Company
| Sector: | Financial ServicesView sector performance | |||||
| Industry: | Asset ManagementView industry performance | |||||
| CEO: | Michael Scott Sarner | |||||
| Full Time Employees: | 36 | |||||
| Address: |
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| Website: | https://www.capitalsouthwest.com |
Capital Southwest Corporation operates as a business development company (BDC), specializing in credit, private equity, and venture capital investments focused on middle market companies throughout the United States. The firm engages across various investment stages, including mezzanine financing, later-stage and mature businesses, late venture, emerging growth enterprises, buyouts, recapitalizations, and growth capital funding. The company explicitly refrains from investing in startups, publicly traded entities, real estate developments, project finance opportunities, oil and gas exploration ventures, troubled companies, turnaround situations, or businesses facing significant departures of senior management. Within the lower middle market, Capital Southwest provides capital for growth initiatives, bolt-on and new platform acquisitions, refinancing, dividend recapitalizations, and both sponsor-led and management buyouts. Its investment structures are diverse, encompassing Unitranche debt, subordinated debt, senior debt, first and second lien debt, alongside preferred and common equity. The firm also participates in equity co-investments alongside its debt financing, taking non-controlling stakes up to 20% of the total transaction value. Investment criteria for target companies include revenues exceeding $10 million, consistent profitability, and a historical annual growth rate of at least 15%. For lower middle market opportunities, the firm typically seeks businesses with less than $15 million in EBITDA, while also opportunistically considering upper middle market ventures, generally defined as companies with EBITDA greater than $50 million. Capital Southwest strategically focuses its investments within several key industry sectors: Industrial manufacturing and services Value-added distribution Healthcare products and services Business services Specialty chemicals Food and beverage Tech-enabled services and SaaS models More specifically, the firm seeks opportunities in: Energy services and products: This segment includes all industry facets (upstream, midstream, downstream) with the exclusion of direct exploration and production. Focus areas encompass differentiated products and services, equipment and tool rentals, consumable products, and drilling and completion chemicals. Industrial technologies: Covering automation and process controls, handling and packaging equipment, industrial filtration and fluid handling, measurement, monitoring, and testing solutions, professional tools, and sensors and instrumentation. Specialty chemicals and products: This segment targets businesses involved in the development and manufacture of highly differentiated products such as adhesives, coatings, sealants, catalysts, absorbents, cosmeceuticals, fine chemicals, flavors, fragrances, performance lubricants, polymers, plastics, composites, chemical dispensing and filtration equipment, professional and industrial trade consumables and tools, engineered solutions for HVAC, plumbing, and electrical installations, and specified high-performance materials for fire protection and oilfield applications. Additionally, the firm considers exceptional opportunities within building products. Beyond direct investments, Capital Southwest allocates capital to syndicated first and second lien term loans in the upper middle market. The criteria for these syndicated loans include: First Lien: Companies with EBITDA over $30 million, closing leverage exceeding 4x, an investment hold size between $5 million and $7 million, and an investment yield greater than 6.5%. Second Lien: Companies with EBITDA surpassing $50 million, closing leverage above 6x, an investment hold size between $5 million and $7 million, and an investment yield exceeding 9%. The firm’s investment sizes typically range from $5 million to $25 million for securities generally. Specifically, equity investments can range from $5 million to $50 million, while debt investments typically fall between $5 million and $20 million. Co-investment transaction sizes can extend up to $40 million. While its equity co-investments are exclusively non-controlling, the firm generally maintains flexibility in taking both majority and minority positions across its investment portfolio. Capital Southwest has the capacity to hold investments for extended periods and may also utilize warrants as an investment mechanism. The firm prioritizes obtaining Board representation in its portfolio companies. Capital Southwest Corporation was established on April 19, 1961, and is headquartered in Dallas, Texas.
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Revenue Segmentation
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| CSWC | Capital Southwest Corporation | 1.5B | 12.3 | 9.8 | 6.3% |
 PSUS | Pershing Square USA, Ltd. | 1.5B | — | — | — |
 TRIN | Trinity Capital Inc. | 1.5B | 8.9 | 8.1 | 8.5% |
 TSLX | Sixth Street Specialty Lending, Inc. | 1.6B | 18.3 | 9.8 | 3.7% |
 PAX | Patria Investments Ltd | 1.9B | 25.9 | 8.7 | 7.1% |
 OCSL | Oaktree Specialty Lending Corporation | 1.0B | 24.0 | 7.7 | 4.1% |
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 152,149 | 163,812 | 245,935 |
| Gross Profit | 109,061 | 108,853 | 231,991 |
| EBITDA | 88,906 | 85,278 | 193,871 |
| Operating Income | 84,602 | 79,413 | 189,057 |
| Net Income | 83,389 | 70,548 | 112,995 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 1,556,758 | 1,882,840 | 2,177,518 |
| Total Liabilities | 801,082 | 999,207 | 1,166,526 |
| Total Stockholders Equity | 755,676 | 883,633 | 1,010,992 |
| Total Debt | 774,053 | 961,465 | 1,131,225 |
| Cash and Cash Equivalents | 32,273 | 43,221 | 29,445 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | -188,496 | -217,258 | -193,504 |
| Capital Expenditure | -13 | 0 | 0 |
| Free Cash Flow | -188,509 | -217,258 | -193,504 |
| Net Income | 83,389 | 70,548 | 112,995 |
| Net Change in Cash | 10,688 | 12,598 | -15,426 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 241,634.988 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 250,555.919 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 245,681.211 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 167,599.350 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 175,468.917 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 171,534.134 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 148,567.715 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 155,734.497 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 152,151.106 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 18,029.626 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 18,695.262 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 18,331.535 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 2.310 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 2.370 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 2.260 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 2 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 1 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates CSWC intrinsic value between $2.67 – $5.87 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about CSWC valuation
Is Capital Southwest Corporation (CSWC) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Capital Southwest Corporation (CSWC) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is CSWC a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether CSWC trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is CSWC’s P/E ratio?
You can see CSWC’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for CSWC?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is CSWC a good long-term investment?
Whether CSWC fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
CSWC
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Daily snapshot
-0.09
Trading Metrics:
| Open: | 23.65 | Previous Close: | 23.52 | |
| Day Low: | 23.38 | Day High: | 23.65 | |
| Year Low: | 19.85 | Year High: | 25.75 | |
| Price Avg 50: | 24.25 | Price Avg 200: | 23.38 | |
| Volume: | 512972 | Average Volume: | 635103 |
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