Capital Southwest (CSWC) Stock Price, News & Analysis

Company Overview

Capital Southwest Corporation (NASDAQ: CSWC) is a business development company that provides customized financing solutions to U.S. middle-market companies. As a non-bank lender, it offers a range of debt and equity instruments, including senior and mezzanine loans, preferred and common equity investments, and other structured financing arrangements. The company targets businesses with proven track records and growth potential across a broad array of industries, such as business services, healthcare, technology, energy and manufacturing.

Founded in 1961 and headquartered in Dallas, Texas, Capital Southwest has evolved from a regional investment firm into a publicly traded entity listed on the NASDAQ. Over its history, the company has completed hundreds of transactions with private companies, assisting management teams in executing growth strategies, recapitalizations, buyouts and dividend recapitalizations. Through this track record, Capital Southwest has developed sector expertise and a disciplined underwriting process aimed at preserving capital and generating consistent returns.

Capital Southwest operates under a regulated BDC structure, which requires it to distribute at least 90% of taxable income as dividends to shareholders while maintaining certain asset coverage and diversification standards. The firm’s investment team conducts thorough due diligence, leveraging its deep industry knowledge and relationships to structure financing that aligns the interests of borrowers and investors. Its portfolio companies benefit from both capital and strategic support, including board representation and operational guidance.

The company is overseen by a board of directors and managed by an experienced executive team with decades of private equity, credit and corporate finance expertise. This leadership group is responsible for setting investment strategy, maintaining risk controls and ensuring that Capital Southwest adheres to its fiduciary commitments. With a focus on the U.S. middle market, the firm aims to deliver sustainable income for shareholders while supporting the growth and innovation of its portfolio companies.

Key Stats

• Today's Range: $23.25 to $23.49
• 50-Day Range: $20.59 to $23.26
• 52-Week Range: $17.46 to $26.27
• Volume: 305,556 shs
• Average Volume: 480,159 shs
• Market Capitalization: $1.25 billion
• P/E Ratio: 15.72
• Dividend Yield: 9.97%
• Price Target: $24.00
• Consensus Rating: Buy

Capital Southwest Stock Analysis - MarketRank™

Capital Southwest scored higher than 58% of companies evaluated by MarketBeat, and ranked 564th out of 933 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: 2.5 / 5
• Analyst Rating: Buy

Consensus Rating

Capital Southwest has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 4 buy ratings, 1 hold rating, and no sell ratings.

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 15.72, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.51.

Price to Earnings Ratio vs. Sector

The P/E ratio of Capital Southwest is 15.72, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 19.17.

Price to Book Value per Share Ratio

Capital Southwest has a P/B Ratio of 1.33. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

4.21% 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 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Capital Southwest has recently increased by 6.80%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Capital Southwest is a leading dividend payer. It pays a dividend yield of 9.98%, 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 156.76%. 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

4.21% 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 3.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Capital Southwest has recently increased by 6.80%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 3.0 / 5
• News Sentiment: 0.42

News Sentiment

Capital Southwest has a news sentiment score of 0.42. 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 lower news sentiment than the 0.91 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 10 news articles for Capital Southwest this week, compared to 5 articles on an average week.

Search Interest

24 people have searched for CSWC on MarketBeat in the last 30 days. This is an increase of 85% compared to the previous 30 days.

MarketBeat Follows

9 people have added Capital Southwest to their MarketBeat watchlist in the last 30 days. This is an increase of 200% 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 $19,915.00 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 at the beginning of the year. Since then, CSWC shares have increased by 6.6% and is now trading at $23.26.

How were Capital Southwest's earnings last quarter?

Capital Southwest Corporation (NASDAQ:CSWC) released its quarterly earnings results on Wednesday, May, 14th. The asset manager reported $0.54 EPS for the quarter, missing the consensus estimate of $0.62 by $0.08. The asset manager earned $52.34 million during the quarter, compared to analyst estimates of $52.83 million. Capital Southwest had a trailing twelve-month return on equity of 14.40% and a net margin of 34.51%.
Read the conference call transcript.

Who are Capital Southwest's major shareholders?

Top institutional shareholders of Capital Southwest include Kingstone Capital Partners Texas LLC (24.37%), Sound Income Strategies LLC (1.31%), Epiq Partners LLC (0.50%) and Confluence Investment Management LLC (0.19%). 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

• Last Earnings: 5/14/2025
• Record date for 6/30 Dividend: 6/13/2025
• Ex-Dividend for 6/30 Dividend: 6/13/2025
• Dividend Payable: 6/30/2025
• Today: 7/18/2025
• Next Earnings (Estimated): 8/06/2025
• Record date for 8/29 Dividend: 8/15/2025
• Ex-Dividend for 8/29 Dividend: 8/15/2025
• Dividend Payable: 8/29/2025
• 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: N/A

Price Target and Rating

• Average Price Target for Capital Southwest: $24.00
• High Price Target: $25.00
• Low Price Target: $22.50
• Potential Upside/Downside: +3.1%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 6 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.48
• Trailing P/E Ratio: 15.73
• Forward P/E Ratio: 9.17
• P/E Growth: N/A
• Net Income: $70.55 million
• Net Margins: 34.51%
• Pretax Margin: 35.62%
• Return on Equity: 14.40%
• Return on Assets: 6.93%

Debt

• Debt-to-Equity Ratio: 0.58
• Current Ratio: 0.18
• Quick Ratio: 0.18

Sales & Book Value

• Annual Sales: $204.44 million
• Price / Sales: 6.12
• Cash Flow: $2.35 per share
• Price / Cash Flow: 9.91
• Book Value: $17.47 per share
• Price / Book: 1.33

Miscellaneous

• Outstanding Shares: 53,710,000
• Free Float: 52,207,000
• Market Cap: $1.25 billion
• Optionable: Optionable
• Beta: 0.95