Capital Southwest (CSWC) Stock Price, News & Analysis

Company Overview

Capital Southwest (NASDAQ: CSWC) is a publicly traded investment firm structured as a business development company (BDC) that provides customized financing solutions to middle-market companies across the United States. The firm offers a spectrum of debt and equity capital, including senior secured loans, mezzanine debt, and both preferred and common equity investments. By partnering with corporate management teams, Capital Southwest seeks to support growth initiatives, recapitalizations, acquisitions, and ownership transitions.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has cultivated a track record of long-term partnerships with privately held businesses and select public companies. Since its inception, the firm has evolved its investment strategy to address changing market dynamics, while maintaining a focus on generating attractive risk-adjusted returns and preserving capital. As a regulated BDC under the Investment Company Act of 1940, Capital Southwest adheres to diversification requirements and leverages sector expertise to identify compelling investment opportunities.

Capital Southwest’s investment portfolio spans a variety of industry sectors, including consumer products, business and financial services, healthcare, industrials, and specialized manufacturing. While the firm maintains roots in the Southwest region—originating from its Texas base—it deploys capital nationally, partnering with management teams in multiple states. Its flexible mandate enables it to structure transactions that balance income generation with potential upside through equity participation.

Leadership at Capital Southwest is comprised of seasoned investment professionals with extensive experience in private credit, corporate finance, and portfolio management. Under the guidance of its executive team, the firm emphasizes disciplined underwriting, active portfolio oversight, and collaborative engagement with portfolio company boards and management teams. This approach underpins Capital Southwest’s objective to deliver sustainable income and long-term capital appreciation for its shareholders.

Key Stats

• Today's Range: $22.68 to $22.98
• 50-Day Range: $22.36 to $23.33
• 52-Week Range: $17.46 to $25.90
• Volume: 470,394 shs
• Average Volume: 496,395 shs
• Market Capitalization: $1.28 billion
• P/E Ratio: 13.91
• Dividend Yield: 10.11%
• Price Target: $24.30
• Consensus Rating: Moderate Buy

Capital Southwest Stock Analysis - MarketRank™

Capital Southwest scored higher than 59% of companies evaluated by MarketBeat, and ranked 595th out of 941 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.9 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Capital Southwest has received a consensus rating of Moderate Buy. The company's average rating score is 2.83, and is based on 5 buy ratings, 1 hold rating, and no sell ratings.

Upside/Downside

The consensus price target for Capital Southwest is close to its current price, suggesting limited near-term upside or downside.

Amount of Analyst Coverage

Capital Southwest has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -3.94%

Earnings Growth

Earnings for Capital Southwest are expected to decrease by -3.94% in the coming year, from $2.54 to $2.44 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Capital Southwest is 13.91, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 281.45.

Price to Earnings Ratio vs. Sector

The P/E ratio of Capital Southwest is 13.91, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 244.06.

Price to Book Value per Share Ratio

Capital Southwest has a P/B Ratio of 1.31. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

5.23% of the float of Capital Southwest has been sold short.

Short Interest Ratio / Days to Cover

Capital Southwest has a short interest ratio ("days to cover") of 4.9.

Change versus previous month

Short interest in Capital Southwest has recently decreased by 1.74%, indicating that investor sentiment is improving.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Capital Southwest is a leading dividend payer. It pays a dividend yield of 10.27%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Capital Southwest has only been increasing its dividend for 2 years.

Dividend Coverage

The dividend payout ratio of Capital Southwest is 140.61%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Capital Southwest will have a dividend payout ratio of 95.08% in the coming year. This indicates that Capital Southwest may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

5.23% of the float of Capital Southwest has been sold short.

Short Interest Ratio / Days to Cover

Capital Southwest has a short interest ratio ("days to cover") of 4.9.

Change versus previous month

Short interest in Capital Southwest has recently decreased by 1.74%, indicating that investor sentiment is improving.

News and Social Media

• Score: 3.9 / 5
• News Sentiment: 1.01

News Sentiment

Capital Southwest has a news sentiment score of 1.01. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.88 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 7 news articles for Capital Southwest this week, compared to 5 articles on an average week.

Search Interest

32 people have searched for CSWC on MarketBeat in the last 30 days. This is an increase of 113% compared to the previous 30 days.

MarketBeat Follows

16 people have added Capital Southwest to their MarketBeat watchlist in the last 30 days. This is an increase of 167% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: Acquiring Shares

Insider Buying vs. Insider Selling

In the past three months, Capital Southwest insiders have bought more of their company's stock than they have sold. Specifically, they have bought $9,980.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

Only 2.80% of the stock of Capital Southwest is held by insiders.

Percentage Held by Institutions

Only 23.42% of the stock of Capital Southwest is held by institutions.

CSWC Stock Analysis - Frequently Asked Questions

How have CSWC shares performed this year?

Capital Southwest's stock was trading at $21.82 on January 1st, 2025. Since then, CSWC shares have increased by 5.2% and is now trading at $22.95.

How were Capital Southwest's earnings last quarter?

Capital Southwest Corporation (NASDAQ:CSWC) posted its earnings results on Wednesday, August, 6th. The asset manager reported $0.59 earnings per share for the quarter, meeting the consensus estimate of $0.59. The asset manager earned $55.95 million during the quarter, compared to analysts' expectations of $54.36 million. Capital Southwest had a trailing twelve-month return on equity of 14.17% and a net margin of 39.95%.
Read the conference call transcript.

Who are Capital Southwest's major shareholders?

Capital Southwest's top institutional shareholders include Kingstone Capital Partners Texas LLC (24.37%), Sanders Morris Harris LLC (2.59%), Sound Income Strategies LLC (1.31%) and Balyasny Asset Management L.P. (0.98%). Insiders that own company stock include Ramona Lynn Rogers-Windsor and Christine Battist.
View institutional ownership trends.

How do I buy shares of Capital Southwest?

Shares of CSWC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Capital Southwest own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Capital Southwest investors own include Symbotic (SYM), JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), NVIDIA (NVDA), Meta Platforms (META), Broadcom (AVGO), Arista Networks (ANET) and Novo Nordisk A/S (NVO).

Company Calendar

• Record date for 7/31 Dividend: 7/15/2025
• Ex-Dividend for 7/31 Dividend: 7/15/2025
• Dividend Payable: 7/31/2025
• Last Earnings: 8/06/2025
• Today: 9/18/2025
• Record date for 10/31 Dividend: 10/15/2025
• Ex-Dividend for 10/31 Dividend: 10/15/2025
• Next Earnings (Estimated): 10/27/2025
• Dividend Payable: 10/31/2025
• Fiscal Year End: 3/31/2026

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - INVEST MGMT
• Sub-Industry: Asset Management & Custody Banks
• Current Symbol: NASDAQ:CSWC
• CIK: 17313
• Web: www.capitalsouthwest.com
• Phone: (214) 238-5700
• Fax: 214-238-5701
• Employees: 20
• Year Founded: 1961

Price Target and Rating

• Average Price Target for Capital Southwest: $24.30
• High Price Target: $25.00
• Low Price Target: $22.50
• Potential Upside/Downside: +5.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.83
• Research Coverage: 6 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.65
• Trailing P/E Ratio: 13.91
• Forward P/E Ratio: 9.04
• P/E Growth: N/A
• Net Income: $70.55 million
• Net Margins: 39.95%
• Pretax Margin: 40.27%
• Return on Equity: 14.17%
• Return on Assets: 6.77%

Debt

• Debt-to-Equity Ratio: 0.53
• Current Ratio: 0.19
• Quick Ratio: 0.19

Sales & Book Value

• Annual Sales: $204.44 million
• Price / Sales: 6.24
• Cash Flow: $2.36 per share
• Price / Cash Flow: 9.73
• Book Value: $17.47 per share
• Price / Book: 1.31

Miscellaneous

• Outstanding Shares: 55,630,000
• Free Float: 54,070,000
• Market Cap: $1.28 billion
• Optionable: Optionable
• Beta: 0.96