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

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$21.37 -0.10 (-0.47 %)
(As of 02/18/2019 04:00 PM ET)
Previous Close$21.47
Today's Range$21.28 - $21.55
52-Week Range$16.53 - $24.17
Volume61,923 shs
Average Volume88,491 shs
Market Capitalization$368.27 million
P/E Ratio21.16
Dividend Yield6.71%
Beta0.26
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

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

Debt

Price-To-Earnings

Sales & Book Value

Annual Sales$35.13 million
Cash Flow$0.9921 per share
Book Value$18.43 per share

Profitability

Net Income$39.30 million

Miscellaneous

Employees19
Market Cap$368.27 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 paid a dividend of $0.36 per share on Monday, December 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 6.74%. 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) posted its earnings results on Monday, February, 4th. The asset manager reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.02. The asset manager earned $13.87 million during the quarter, compared to the consensus estimate of $13.52 million. Capital Southwest had a net margin of 84.08% and a return on equity of 6.78%. 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, June 3rd 2019. View Earnings Estimates for Capital Southwest.

What price target have analysts set for CSWC?

3 equities research analysts have issued 1 year price objectives for Capital Southwest's stock. Their forecasts range from $20.00 to $24.00. On average, they anticipate Capital Southwest's share price to reach $22.3333 in the next twelve months. This suggests a possible upside of 4.5% from the stock's current price. View Analyst Price Targets for Capital Southwest.

What is the consensus analysts' recommendation for Capital Southwest?

3 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Capital Southwest in the last year. There are currently 1 hold rating and 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. " (2/11/2019)
  • 2. National Securities analysts commented, " For F3Q19, Capital Southwest earned $0.40/share of core NII, two cents above our estimate. The base dividend was increased to $0.36/share from $0.34/share Q/Q. We expect there is still a good runway for earnings growth ahead as the company posted core NII ROAE of 8.7% with D/E of 0.63x. We project that this number can get close to double-digits as the company nears 0.85x D/E in F3Q20, well under the Board limit of 1.50x (167% asset coverage).
     CSWC exited one of two remaining legacy investments: Deepwater Corrosion Services, for a $1.7mm realized gain which will be used to pad UTI (undistributed taxable income) for the supplemental dividends being paid. On the earnings call, management noted that if they were to sell Media Recovery in calendar 2019 and had no other realized gains or build-up of UTI from excess NII they could pay their supplemental $0.10/share quarterly dividends into calendar 2023. Media Recovery was marked up by $4.3mm Q/Q.
     AG King Holdings was placed on non-accrual status during the quarter, although the write-down was modest to 94% of cost from 98% Q/Q. The position is leveraged at 4.0x net debt/EBITDA through the last dollar of risk and management appears confident in recovery prospects.
     The portfolio at cost grew very modestly to $454.7mm from $445.1 mm Q/Q as originations of $22.3mm slightly outpaced exits of $18.0mm. We continue to expect CSWC to remain disciplined with its underwriting but think that the portfolio has the potential for strong growth through F2020.
     We are revising our fiscal 2019 core NII/share estimate to $1.49 from $1.43 and our fiscal 2020 core NII/share estimate to $1.75 from $1.68. We are maintaining our BUY rating and our $24 price target." (2/6/2019)

Has Capital Southwest been receiving favorable news coverage?

Media stories about CSWC stock have trended positive this week, InfoTrie Sentiment Analysis reports. The research firm scores the sentiment of press coverage by reviewing more than six thousand news and blog sources. The firm ranks coverage of publicly-traded companies on a scale of negative five to positive five, with scores closest to five being the most favorable. Capital Southwest earned a news impact score of 2.3 on InfoTrie's scale. They also gave headlines about the asset manager a news buzz of 6.0 out of 10, indicating that recent press coverage is somewhat likely to have an impact on the stock's share price in the near future.

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 50)
  • Mr. Michael Scott Sarner, Treasurer, Sec., Chief Compliance Officer & CFO (Age 46)
  • Mr. William M. Ashbaugh, Managing Director (Age 64)
  • 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 many different of institutional and retail investors. Top institutional shareholders include Moab Capital Partners LLC (6.13%), Sanders Morris Harris LLC (4.82%), River Road Asset Management LLC (4.53%), First Manhattan Co. (3.79%), Advisors Asset Management Inc. (0.92%) and Raymond James & Associates (0.86%). Company insiders that own Capital Southwest stock include Christine Battist, David R Brooks, Douglas M Kelley, Jack D Furst, 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 Moab Capital Partners LLC, River Road Asset Management LLC, First Manhattan Co., Northern Trust Corp, Advisor Group Inc., Grace & White Inc. NY, Wedbush Securities Inc. and Raymond James & Associates. 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, Confluence Investment Management LLC, Navellier & Associates Inc, Cavalier Investments LLC, Two Sigma Investments LP, Creative Planning, Advisors Asset Management Inc. and California Public Employees Retirement System. Company insiders that have bought Capital Southwest stock in the last two years include Christine Battist, David R Brooks, Douglas M Kelley, Jack D Furst, 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 $21.37.

How big of a company is Capital Southwest?

Capital Southwest has a market capitalization of $368.27 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:  137 (Vote Outperform)
Underperform Votes:  133 (Vote Underperform)
Total Votes:  270
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 2/18/2019 by MarketBeat.com Staff

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