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CSWC stock logo

CSWC

Capital Southwest Corporation

$22.37
0.44
 (2.01%)
Exchange:  NASDAQ
Market Cap:  1.346B
Shares Outstanding:  15.068M
Overview
Earnings
Financials
Valuation
Chart

About The Company

Sector:  Financial Services
Industry:  Asset Management
   
CEO:  Michael Scott Sarner
Full Time Employees:  27
Address: 
8333 Douglas Avenue
Dallas
TX
75225
US
Website:  https://www.capitalsouthwest.com
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.

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Revenue Segmentation

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EPS

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Earnings Call

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Earnings transcript

Read the complete earnings call transcript.

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2025/02/04 — 3 quarter 2025

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Income Statement
Balance Sheet
Cash Flow Statement
Analyst Estimates

Income Statement

Year202320242025
Revenue90,326152,149163,812
Gross Profit61,453109,061108,853
EBITDA42,81688,90685,278
Operating Income40,06684,60279,413
Net Income33,09383,38970,548

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(* All numbers are in thousands)

Balance Sheet

Year202320242025
Total Assets1,257,6841,556,7581,882,840
Total Liabilities667,276801,082999,207
Total Stockholders Equity590,408755,676883,633
Total Debt637,644774,053961,465
Cash and Cash Equivalents21,58532,27343,221

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Cash Flow Statement

Year202320242025
Operating Cash Flow-227,100-188,496-217,258
Capital Expenditure-281-130
Free Cash Flow-227,381-188,509-217,258
Net Income33,09383,38970,548
Net Change in Cash10,15410,68812,598

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(* All numbers are in thousands)

Analyst Estimates

Fiscal Year2028Full AccessFull AccessFull AccessFull Access
Estimated Revenue (Low)302,558.981Full AccessFull AccessFull AccessFull Access
Estimated Revenue (High)317,154.498Full AccessFull AccessFull AccessFull Access
Estimated Revenue (Avg)309,820Full AccessFull AccessFull AccessFull Access
Estimated Ebitda (Low)172,358.473Full AccessFull AccessFull AccessFull Access
Estimated Ebitda (High)180,673.087Full AccessFull AccessFull AccessFull Access
Estimated Ebitda (Avg)176,494.850Full AccessFull AccessFull AccessFull Access
Estimated Net Income (Low)125,559.369Full AccessFull AccessFull AccessFull Access
Estimated Net Income (High)133,490.394Full AccessFull AccessFull AccessFull Access
Estimated Net Income (Avg)129,524.882Full AccessFull AccessFull AccessFull Access
Estimated SGA Expense (Low)21,114.932Full AccessFull AccessFull AccessFull Access
Estimated SGA Expense (High)22,133.521Full AccessFull AccessFull AccessFull Access
Estimated SGA Expense (Avg)21,621.663Full AccessFull AccessFull AccessFull Access
Estimated EPS (Avg)2.530Full AccessFull AccessFull AccessFull Access
Estimated EPS (High)2.610Full AccessFull AccessFull AccessFull Access
Estimated EPS (Low)2.450Full AccessFull AccessFull AccessFull Access
Number of Analysts (Estimated Revenue)1Full AccessFull AccessFull AccessFull Access
Number of Analysts (Estimated EPS)1Full AccessFull AccessFull AccessFull Access

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(* All numbers are in thousands)

Current Key Metrics

?Revenue
 (TTM)
: 
138.526M  ?P/S
 (TTM)
: 
6.83
?Net Income
 (TTM)
: 
83.389M  ?P/E
 (TTM)
: 
13.56
?Enterprise Value
 (TTM)
: 
1.834B  ?EV/FCF
 (TTM)
: 
-26.7
?Dividend Yield
 (TTM)
: 
0.11  ?Payout Ratio
 (TTM)
: 
1.38
?ROE
 (TTM)
: 
0.11  ?ROIC
 (TTM)
: 
0.05
?Net Debt
 (TTM)
: 
889.681M  ?Debt/Equity
 (TTM)
: 
0.42
?P/B
 (TTM)
: 
1.4  ?Current Ratio
 (TTM)
: 
0.36

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Forward P/E Ratios

?

Forward P/E (Avg EPS estimate) — log in with Full Access for high/low estimates and the interactive table.

Forward P/E 1YFull AccessFull AccessFull AccessFull Access
9.36Full AccessFull AccessFull AccessFull Access

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SWOT Analysis

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At what price to buy it? -
Intrinsic Value Calculator

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Calculate CSWC Intrinsic Value

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

1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.

Daily snapshot

2.01
MARKETSnap

Trading Metrics:

Open: 21.74   Previous Close: 21.93
Day Low: 21.72   Day High: 22.39
Year Low: 17.46   Year High: 23.84
Price Avg 50: 22.52   Price Avg 200: 22.13
Volume: 621843   Average Volume: 657781

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See in Nexus

Relevant news

Capital Southwest's 41% Premium Hinges on Rate Cuts That May Never Come
Capital Southwest Offers 10.6% Income and One Very Finite Safety Net
Capital Southwest (NASDAQ:CSWC) and ArrowMark Financial (NASDAQ:BANX) Head-To-Head Survey
7 High Yield Monthly Payers To Own
Fearful Of Cockroaches? Buy Capital Southwest And Lock In 11.5% Dividends
Buy These 5-11% Yields For Retirement Income

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