CAPITAL SOUTHWEST CORP (CSWC)
US1405011073 - Common Stock
Taking everything into account, CSWC scores 5 out of 10 in our fundamental rating. CSWC was compared to 220 industry peers in the Capital Markets industry. Both the profitability and the financial health of CSWC get a neutral evaluation. Nothing too spectacular is happening here. CSWC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CSWC was profitable.
CSWC had a negative operating cash flow in the past year.
Of the past 5 years CSWC 4 years were profitable.
In the past 5 years CSWC always reported negative operating cash flow.
1.2 Ratios
CSWC has a Return On Assets of 4.59%. This is in the better half of the industry: CSWC outperforms 65.90% of its industry peers.
CSWC has a Return On Equity (9.31%) which is in line with its industry peers.
CSWC's Return On Invested Capital of 5.97% is fine compared to the rest of the industry. CSWC outperforms 70.97% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CSWC is below the industry average of 7.00%.
The last Return On Invested Capital (5.97%) for CSWC is above the 3 year average (4.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 9.31% | ||
| ROIC | 5.97% |
ROA(3y)4.13%
ROA(5y)3.09%
ROE(3y)8.94%
ROE(5y)6.74%
ROIC(3y)4.51%
ROIC(5y)4.26%
1.3 Margins
The Profit Margin of CSWC (37.77%) is better than 79.26% of its industry peers.
CSWC's Profit Margin has declined in the last couple of years.
The Operating Margin of CSWC (61.95%) is better than 93.09% of its industry peers.
CSWC's Operating Margin has improved in the last couple of years.
CSWC has a better Gross Margin (75.41%) than 79.72% of its industry peers.
In the last couple of years the Gross Margin of CSWC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.95% | ||
| PM (TTM) | 37.77% | ||
| GM | 75.41% |
OM growth 3Y7.54%
OM growth 5Y5.44%
PM growth 3Y-14.44%
PM growth 5Y-6%
GM growth 3Y1.01%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
The number of shares outstanding for CSWC has been increased compared to 1 year ago.
CSWC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CSWC has an improved debt to assets ratio.
2.2 Solvency
CSWC has an Altman-Z score of 1.07. This is a bad value and indicates that CSWC is not financially healthy and even has some risk of bankruptcy.
CSWC has a Altman-Z score (1.07) which is in line with its industry peers.
CSWC has a Debt/Equity ratio of 0.99. This is a neutral value indicating CSWC is somewhat dependend on debt financing.
CSWC has a Debt to Equity ratio of 0.99. This is comparable to the rest of the industry: CSWC outperforms 51.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.07 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
CSWC has a Current Ratio of 10.45. This indicates that CSWC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 10.45, CSWC belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
A Quick Ratio of 10.45 indicates that CSWC has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 10.45, CSWC belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.45 | ||
| Quick Ratio | 10.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.53% over the past year.
The Earnings Per Share has been growing by 13.71% on average over the past years. This is quite good.
Looking at the last year, CSWC shows a very strong growth in Revenue. The Revenue has grown by 27.40%.
CSWC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.97% yearly.
EPS 1Y (TTM)1.53%
EPS 3Y17.37%
EPS 5Y13.71%
EPS Q2Q%-4.35%
Revenue 1Y (TTM)27.4%
Revenue growth 3Y37.78%
Revenue growth 5Y27.97%
Sales Q2Q%13.86%
3.2 Future
CSWC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.25% yearly.
The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y-4.89%
EPS Next 2Y-3.87%
EPS Next 3Y-3.25%
EPS Next 5YN/A
Revenue Next Year14.84%
Revenue Next 2Y10.68%
Revenue Next 3Y-0.79%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.94, the valuation of CSWC can be described as very cheap.
79.72% of the companies in the same industry are more expensive than CSWC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CSWC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.44, the valuation of CSWC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CSWC indicates a rather cheap valuation: CSWC is cheaper than 80.65% of the companies listed in the same industry.
CSWC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 8.44 |
4.2 Price Multiples
CSWC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CSWC is cheaper than 79.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.76 |
4.3 Compensation for Growth
CSWC's earnings are expected to decrease with -3.25% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.58
EPS Next 2Y-3.87%
EPS Next 3Y-3.25%
5. Dividend
5.1 Amount
CSWC has a Yearly Dividend Yield of 10.20%, which is a nice return.
CSWC's Dividend Yield is a higher than the industry average which is at 9.13.
CSWC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.2% |
5.2 History
The dividend of CSWC has a limited annual growth rate of 0.11%.
CSWC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of CSWC decreased in the last 3 years.
Dividend Growth(5Y)0.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
156.44% of the earnings are spent on dividend by CSWC. This is not a sustainable payout ratio.
CSWC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP156.44%
EPS Next 2Y-3.87%
EPS Next 3Y-3.25%
CAPITAL SOUTHWEST CORP
NASDAQ:CSWC (12/20/2024, 8:04:15 PM)
After market: 21.05 0 (0%)21.05
+0.2 (+0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners24.19%
Inst Owner Change2.48%
Ins Owners6.89%
Ins Owner Change0.32%
Market Cap1.00B
Analysts78.46
Price Target25.67 (21.95%)
Short Float %2.92%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.2% |
Dividend Growth(5Y)0.11%
DP156.44%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.47%
Min EPS beat(2)-4.35%
Max EPS beat(2)-0.58%
EPS beat(4)1
Avg EPS beat(4)-0.59%
Min EPS beat(4)-4.35%
Max EPS beat(4)3.98%
EPS beat(8)4
Avg EPS beat(8)1.46%
EPS beat(12)7
Avg EPS beat(12)1.45%
EPS beat(16)8
Avg EPS beat(16)0.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)2.48%
Revenue beat(4)2
Avg Revenue beat(4)1.14%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)5.5%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.79%
PT rev (1m)4.14%
PT rev (3m)-0.98%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 8.44 | ||
| P/S | 5.15 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 13.76 |
EPS(TTM)2.65
EY12.59%
EPS(NY)2.5
Fwd EY11.85%
FCF(TTM)-1.62
FCFYN/A
OCF(TTM)-1.61
OCFYN/A
SpS4.09
BVpS16.59
TBVpS16.59
PEG (NY)N/A
PEG (5Y)0.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 9.31% | ||
| ROCE | 7.55% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.15% | ||
| ROICexgc | 6.33% | ||
| OM | 61.95% | ||
| PM (TTM) | 37.77% | ||
| GM | 75.41% | ||
| FCFM | N/A |
ROA(3y)4.13%
ROA(5y)3.09%
ROE(3y)8.94%
ROE(5y)6.74%
ROIC(3y)4.51%
ROIC(5y)4.26%
ROICexc(3y)4.59%
ROICexc(5y)4.36%
ROICexgc(3y)4.69%
ROICexgc(5y)4.47%
ROCE(3y)5.7%
ROCE(5y)5.4%
ROICexcg growth 3Y14.66%
ROICexcg growth 5Y9.62%
ROICexc growth 3Y14.47%
ROICexc growth 5Y9.65%
OM growth 3Y7.54%
OM growth 5Y5.44%
PM growth 3Y-14.44%
PM growth 5Y-6%
GM growth 3Y1.01%
GM growth 5Y-0.18%
F-Score3
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.24 | ||
| Cap/Depr | 10.7% | ||
| Cap/Sales | 0.27% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 10.45 | ||
| Quick Ratio | 10.45 | ||
| Altman-Z | 1.07 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)33.98%
Cap/Depr(5y)N/A
Cap/Sales(3y)0.9%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.53%
EPS 3Y17.37%
EPS 5Y13.71%
EPS Q2Q%-4.35%
EPS Next Y-4.89%
EPS Next 2Y-3.87%
EPS Next 3Y-3.25%
EPS Next 5YN/A
Revenue 1Y (TTM)27.4%
Revenue growth 3Y37.78%
Revenue growth 5Y27.97%
Sales Q2Q%13.86%
Revenue Next Year14.84%
Revenue Next 2Y10.68%
Revenue Next 3Y-0.79%
Revenue Next 5YN/A
EBIT growth 1Y30.15%
EBIT growth 3Y48.18%
EBIT growth 5Y34.94%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y56.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y55.99%
OCF growth 3YN/A
OCF growth 5YN/A