Capital Southwest Corp

Consumer Discretionary
Textiles
www.capitalsouthwest.com

Earnings Score
Safety Score

Market Cap $647.42M
PE 9
Debt $792.88M
Cash $47.24M
EV $1.39B
FCF -$77.32M

Earnings

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Sales & Net Margins

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Earnings	$73.67M
ROE	9%
FCF	-$77.32M
Equity	$791.26M
Growth Stability	100%
PE	8.79
PEG	0.19
PB	0.82
P/FCF	-8.37
Price/Cash	0.07
Debt/Equity	1
Debt/FCF	-10.25
Earnings CAGR	45%
Equity CAGR	30%
Earnings Stability	-0.26
Earnings Growth YoY	0%
Earnings Growth QoQ	62%

Earnings CAGR 5Y	45%
Equity CAGR 5Y	30%
Equity CAGR 3Y	32%
Market Cap	$647.42M
Dividend Yield	18%
Payout Ratio	156%
Assets	$1.60B
Total Debt	$792.88M
Cash	$47.24M
Shares Outstanding	28.46M
EV	1.39B
Earnings Score	6%
Safety Score	67%
Shares Growth 3y	-11%
Equity Growth QoQ	2%
Equity Growth YoY	20%

Assets & ROA

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Stockholders Equity & ROE

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Capital Southwest Corp is an us-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnership with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien and subordinated debt, preferred stock and common stock and warrants. The primary source company's revenue comprises of interest income and dividend income from investments made as well as management fees.

SEC Filings

Direct access to Capital Southwest Corp (CSWC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-K Mar 31

Sector Comparison

How does Capital Southwest Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Capital Southwest Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 45%

Stability -26%

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Capital Southwest Corp Discounted Cash Flow

Fully customizable DCF calculator online for Capital Southwest Corp.

Years

Calculation mode

= -$773M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$77M	-$773M
DCF		-$70M	-$64M	-$58M	-$53M	-$48M	-$44M	-$40M	-$36M	-$33M	-$30M	-$298M
Value	-$773M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	03/2021	03/2022	03/2023	03/2024	TTM
Net Margins	-	-	-	-	-
ROA	-	-	-	-	-
ROE	-	10%	6%	11%	9%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	03/2021	03/2022	03/2023	03/2024	TTM
Debt over FCF	-	-2.9	-2.84	-4.14	-10.25
Debt over Equity	-	1.27	1.09	1.03	1
Growth Stability	-	-	-	100%	100%

Good Debt/FCF ratio (-10.25)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Neutral Debt/Equity ratio (1)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	03/2021	03/2022	03/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	-	-	-	-
Earnings YoY growth	-	-16%	-23%	152%	45%
Equity YoY growth	-	25%	40%	28%	30%
FCF YoY growth	-	171%	23%	-17%	-