NASDAQ:CSWC - Capital Southwest Stock Price, News, & Analysis

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$20.22 -0.70 (-3.35 %)
(As of 12/14/2018 04:47 AM ET)
Previous Close$20.92
Today's Range$19.85 - $20.81
52-Week Range$14.85 - $24.17
Volume123,900 shs
Average Volume82,743 shs
Market Capitalization$356.20 million
P/E Ratio20.02
Dividend Yield6.51%
Beta0.17
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 up to $5 million and debt investments between $5 million and $20 million and co-invest in transaction size upto $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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Industry, Sector and Symbol

Stock Exchange NASDAQ
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
Current SymbolNASDAQ:CSWC
Previous Symbol
CUSIP14050110
Phone214-238-5700

Debt

Debt-to-Equity Ratio0.41
Current Ratio0.28
Quick Ratio0.28

Price-To-Earnings

Trailing P/E Ratio20.02
Forward P/E Ratio14.04
P/E GrowthN/A

Sales & Book Value

Annual Sales$35.13 million
Price / Sales9.81
Cash Flow$0.9740 per share
Price / Cash Flow20.76
Book Value$19.05 per share
Price / Book1.06

Profitability

EPS (Most Recent Fiscal Year)$1.01
Net Income$39.30 million
Net Margins102.03%
Return on Equity6.23%
Return on Assets4.26%

Miscellaneous

Employees19
Outstanding Shares17,040,000
Market Cap$356.20 million
OptionableOptionable

Capital Southwest (NASDAQ:CSWC) Frequently Asked Questions

What is Capital Southwest's stock symbol?

Capital Southwest trades on the NASDAQ under the ticker symbol "CSWC."

How often does Capital Southwest pay dividends? What is the dividend yield for Capital Southwest?

Capital Southwest announced a quarterly dividend on Wednesday, November 28th. Stockholders of record on Friday, December 14th will be given a dividend of $0.36 per share on Monday, December 31st. This represents a $1.44 annualized dividend and a dividend yield of 7.12%. The ex-dividend date is Thursday, December 13th. This is an increase from Capital Southwest's previous quarterly dividend of $0.34. View Capital Southwest's Dividend History.

How were Capital Southwest's earnings last quarter?

Capital Southwest Co. (NASDAQ:CSWC) announced its quarterly earnings data on Wednesday, November, 7th. The asset manager reported $0.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.06. The asset manager earned $12.60 million during the quarter, compared to analyst estimates of $10.58 million. Capital Southwest had a return on equity of 6.23% and a net margin of 102.03%. View Capital Southwest's Earnings History.

When is Capital Southwest's next earnings date?

Capital Southwest is scheduled to release their next quarterly earnings announcement on Monday, February 4th 2019. View Earnings Estimates for Capital Southwest.

What price target have analysts set for CSWC?

2 brokers have issued 12-month price targets for Capital Southwest's stock. Their forecasts range from $20.00 to $24.00. On average, they anticipate Capital Southwest's stock price to reach $22.00 in the next twelve months. This suggests a possible upside of 8.8% from the stock's current price. View Analyst Price Targets for Capital Southwest.

What is the consensus analysts' recommendation for Capital Southwest?

2 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Capital Southwest in the last year. There are currently 2 buy ratings for the stock, resulting in a consensus recommendation of "Buy." View Analyst Ratings for Capital Southwest.

What are Wall Street analysts saying about Capital Southwest stock?

Here are some recent quotes from research analysts about Capital Southwest stock:
  • 1. According to Zacks Investment Research, "Capital Southwest Corporation is a venture capital investment company whose objective is to achieve capital appreciation through long-term investments in businesses believed to have favorable growth potential. The Company's investments are focused on early-stage financings, expansion financings, management buyouts and recapitalizations in a broad range of industry segments. The portfolio is a composite of companies in which the Company has major interests as well as a number of developing companies and marketable securities of established publicly-owned companies. " (11/13/2018)
  • 2. National Securities analysts commented, " CSWC earned core NII/share of $0.36 for fiscal 2Q19, two cents above our estimate. The dividend declared came in at $0.44, a $0.34/share base dividend plus the $0.10/share quarterly supplemental dividend. We had previously modeled a $0.41/share total dividend.
     Additionally, the earnings were not positively impacted by outsized prepayment-related income, as we see it. Fee income was down to $200K from $385K Q/Q and total repayment/disposition activity declined to $10.9 million on the quarter from $66.6 million in fiscal 1Q19. CSWC’s earnings and dividend growth have begun to outpace our previous projections and we continue to expect a positive trajectory for earnings, dividends, and NAV/share for the company.
     The company continues to sit on a $39.4 million unrealized gain on Media Recovery equating to $2.37/share. We expect that this should be realized in fiscal 4Q19 (3/31/18 quarter) and that a special dividend should be paid in the subsequent quarter. For that quarter, we think total dividends (base, regular supplemental, and roughly half of the realized gain from Media Recovery) should total $1.67. For fiscal 2020, we think total dividends paid may be $3.15/share which would be a yield of 16.3% on the 11/9/18 closing price of $19.35.
     We think that despite the run-up in shares, the market is still not fully appreciating the value creation of Capital Southwest. The internal management structure, conservative underwriting criteria of management, and potential for significant increases in taxable income and thus distributions continue to point towards further unlocking of value, in our opinion.
     We are revising our fiscal 2019 core NII/share estimate to $1.43 from $1.39 and our fiscal 2020 core NII/share estimate to $1.68 from $1.62 and maintaining our BUY rating and increasing our price target to $24 from $23." (11/12/2018)

Has Capital Southwest been receiving favorable news coverage?

News coverage about CSWC stock has trended positive this week, InfoTrie Sentiment reports. InfoTrie identifies positive and negative media coverage by reviewing more than six thousand news and blog sources in real time. The firm ranks coverage of companies on a scale of negative five to positive five, with scores closest to five being the most favorable. Capital Southwest earned a news sentiment score of 2.6 on InfoTrie's scale. They also gave news coverage about the asset manager a news buzz of 2.0 out of 10, meaning that recent media coverage is very unlikely to have an effect on the stock's share price in the next several days.

Who are some of Capital Southwest's key competitors?

Who are Capital Southwest's key executives?

Capital Southwest's management team includes the folowing people:
  • Mr. Bowen S. Diehl, Pres, CEO & Director (Age 49)
  • Mr. Michael Scott Sarner, Treasurer, Sec., Chief Compliance Officer & CFO (Age 45)
  • Mr. William M. Ashbaugh, Managing Director (Age 63)
  • Mr. Douglas M. Kelley, Managing Director
  • Mr. Joshua S. Weinstein CFA, Managing Director

Who are Capital Southwest's major shareholders?

Capital Southwest's stock is owned by a number of of retail and institutional investors. Top institutional investors include Zuckerman Investment Group LLC (8.54%), First Manhattan Co. (3.99%), Third Avenue Management LLC (0.83%), Advisors Asset Management Inc. (0.81%), Grace & White Inc. NY (0.76%) and National Asset Management Inc. (0.51%). Company insiders that own Capital Southwest stock include Christine Battist, David R Brooks, Douglas M Kelley, John H Wilson, Joseph B Armes, Michael Scott Sarner, Moab Capital Partners Llc, Moab Partners Lp and Thomas Duane Morgan. View Institutional Ownership Trends for Capital Southwest.

Which institutional investors are selling Capital Southwest stock?

CSWC stock was sold by a variety of institutional investors in the last quarter, including National Asset Management Inc., Third Avenue Management LLC, First Manhattan Co., Grace & White Inc. NY and Brown Advisory Inc.. View Insider Buying and Selling for Capital Southwest.

Which institutional investors are buying Capital Southwest stock?

CSWC stock was purchased by a variety of institutional investors in the last quarter, including Sanders Morris Harris LLC, Zuckerman Investment Group LLC, Advisory Research Inc., Sumitomo Mitsui Asset Management Company LTD and Advisors Asset Management Inc.. Company insiders that have bought Capital Southwest stock in the last two years include Christine Battist, David R Brooks, Douglas M Kelley, John H Wilson, Michael Scott Sarner and Thomas Duane Morgan. View Insider Buying and Selling for Capital Southwest.

How do I buy shares of Capital Southwest?

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

What is Capital Southwest's stock price today?

One share of CSWC stock can currently be purchased for approximately $20.22.

How big of a company is Capital Southwest?

Capital Southwest has a market capitalization of $356.20 million and generates $35.13 million in revenue each year. The asset manager earns $39.30 million in net income (profit) each year or $1.01 on an earnings per share basis. Capital Southwest employs 19 workers across the globe.

What is Capital Southwest's official website?

The official website for Capital Southwest is http://www.capitalsouthwest.com.

How can I contact Capital Southwest?

Capital Southwest's mailing address is 5400 LYNDON B JOHNSON FREEWAY SUITE 1300, DALLAS TX, 75240. The asset manager can be reached via phone at 214-238-5700 or via email at [email protected]


MarketBeat Community Rating for Capital Southwest (NASDAQ CSWC)

Community Ranking:  2.5 out of 5 (star star half star)
Outperform Votes:  123 (Vote Outperform)
Underperform Votes:  124 (Vote Underperform)
Total Votes:  247
MarketBeat's community ratings are surveys of what our community members think about Capital Southwest and other stocks. Vote "Outperform" if you believe CSWC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe CSWC will underperform the S&P 500 over the long term. You may vote once every thirty days.
This page was last updated on 12/14/2018 by MarketBeat.com Staff

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