NASDAQ:CSWC - Capital Southwest Stock Price, Price Target & More

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$18.88 -0.20 (-1.05 %)
(As of 06/21/2018 03:48 PM ET)
Previous Close$19.00
Today's Range$18.88 - $19.00
52-Week Range$14.85 - $19.38
Volume219 shs
Average Volume26,757 shs
Market Capitalization$308.53 million
P/E Ratio18.72
Dividend Yield5.87%
Beta0.25
Capital Southwest logoCapital 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 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, EBITDA between $3 million and $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
SymbolNASDAQ:CSWC
CUSIP14050110
Phone214-238-5700

Debt

Debt-to-Equity Ratio0.13
Current Ratio0.25
Quick Ratio0.25

Price-To-Earnings

Trailing P/E Ratio18.72
Forward P/E RatioN/A
P/E GrowthN/A

Sales & Book Value

Annual Sales$35.13 million
Price / Sales8.68
Cash Flow$0.9953 per share
Price / Cash18.97
Book Value$19.05 per share
Price / Book0.99

Profitability

EPS (Most Recent Fiscal Year)$1.01
Net Income$39.30 million
Net Margins111.90%
Return on Equity5.57%
Return on Assets4.34%

Miscellaneous

Employees19
Outstanding Shares16,160,000

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 Tuesday, June 5th. Shareholders of record on Tuesday, June 26th will be given a dividend of $0.29 per share on Monday, July 2nd. This represents a $1.16 dividend on an annualized basis and a yield of 6.14%. The ex-dividend date of this dividend is Monday, June 25th. This is a positive change from Capital Southwest's previous quarterly dividend of $0.28. View Capital Southwest's Dividend History.

How were Capital Southwest's earnings last quarter?

Capital Southwest Co. (NASDAQ:CSWC) posted its earnings results on Tuesday, June, 5th. The asset manager reported $0.28 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $0.28 by $0.00. The asset manager had revenue of $9.87 million for the quarter, compared to analysts' expectations of $9.70 million. Capital Southwest had a return on equity of 5.57% and a net margin of 111.90%. 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, August, 6th 2018. View Earnings Estimates for Capital Southwest.

What price target have analysts set for CSWC?

5 analysts have issued 12 month price objectives for Capital Southwest's shares. Their predictions range from $18.00 to $23.00. On average, they expect Capital Southwest's share price to reach $20.20 in the next year. 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. National Securities analysts commented, "• CSWC earned core (pre-tax) NII/share of $0.28 versus our estimate of $0.30 as interest expense was higher than we had anticipated.
    • The company announced a $0.60/share special dividend on top of a penny per share increase in the base dividend and also guided towards $0.10/share each quarter in special dividends going forward. We expect the company exited Titanliner at 3/31/18 marks for a realized gain of $17.2 million ($1.06/share), with the company paying out over half of that in fiscal 1Q19.
    • In fiscal 4Q19, we model CSWC to exit Media Recovery at current marks for a realized gain of $37.7 million and to subsequently declare total dividends per share of $1.68 in fiscal 1Q20 ($1.30 special).
    • Positive marks of $7.4 million on Titanliner and $3.0 million on Media Recovery drove the strong Q/Q NAV/share increase to $19.08 from $18.44. We expect NAV/share to be largely stable the next two years and as a result of what will likely be increased NII and realized gains, higher distributions declared. These factors should serve to further enhance economic returns which we model to be around the low-to-mid teens on average through fiscal 2019 and 2020.
    • CSWC got Board approval to increase leverage, but also put a restraint on itself to not exceed D/E of 1.50x. The company discussed the previous 0.80x D/E target as leaving ample cushion below the 1.00x limit, which leads us to expect CSWC to leverage up to around 1.00x before we even begin to contemplate the need for additional equity capital to be raised. If there is a severe market dislocation, we think the company could ideally take advantage of UMM loan purchases and increase leverage beyond this.
    • We are revising our fiscal 2019 core NII/share estimate to $1.37 from $1.41 and are rolling out our fiscal 2020 core NII/share estimate of $1.64. We are increasing our price target to $23 from $22 which represents an estimated P/F2020 NAV/share multiple of 1.18x. " (6/11/2018)
  • 2. 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. " (6/7/2018)

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, CEO, Pres & Director (Age 49)
  • Mr. Michael Scott Sarner, Treasurer, Sec., Director, Chief Compliance Officer & CFO (Age 45)
  • Mr. William M. Ashbaugh, Managing Director (Age 63)
  • Mr. Douglas M. Kelley, Managing Director
  • Mr. Josh Weinstein CFA, Managing Director

Has Capital Southwest been receiving favorable news coverage?

Media headlines about CSWC stock have trended somewhat positive recently, according to Accern. The research group identifies positive and negative news coverage by analyzing more than 20 million blog and news sources in real-time. Accern ranks coverage of public companies on a scale of -1 to 1, with scores nearest to one being the most favorable. Capital Southwest earned a media sentiment score of 0.06 on Accern's scale. They also assigned press coverage about the asset manager an impact score of 45.88 out of 100, indicating that recent news coverage is somewhat unlikely to have an impact on the stock's share price in the near future.

Who are Capital Southwest's major shareholders?

Capital Southwest's stock is owned by a variety of of institutional and retail investors. Top institutional shareholders include Punch & Associates Investment Management Inc. (11.56%), UBS Group AG (1.83%), Hilltop Holdings Inc. (0.26%), Northern Trust Corp (0.17%), Greenwich Investment Management Inc. (0.11%) and Wells Fargo & Company MN (0.08%). Company insiders that own Capital Southwest stock include 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 major investors are selling Capital Southwest stock?

CSWC stock was sold by a variety of institutional investors in the last quarter, including UBS Group AG, Wells Fargo & Company MN and Punch & Associates Investment Management Inc.. Company insiders that have sold Capital Southwest company stock in the last year include Joseph B Armes and Moab Capital Partners Llc. View Insider Buying and Selling for Capital Southwest.

Which major investors are buying Capital Southwest stock?

CSWC stock was bought by a variety of institutional investors in the last quarter, including Hilltop Holdings Inc., Northern Trust Corp, Greenwich Investment Management Inc. and Centaurus Financial Inc.. Company insiders that have bought Capital Southwest stock in the last two years include 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 $18.88.

How big of a company is Capital Southwest?

Capital Southwest has a market capitalization of $308.53 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.

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 (CSWC)

Community Ranking:  2.6 out of 5 (star star)
Outperform Votes:  80 (Vote Outperform)
Underperform Votes:  74 (Vote Underperform)
Total Votes:  154
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 6/21/2018 by MarketBeat.com Staff

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