Capital Southwest (CSW) Stock Price, News & Analysis

Company Overview

Capital Southwest Corporation (NYSE: CSW) is a closed‐end, externally managed business development company (BDC) that provides customized financing solutions to middle‐market companies in the United States. Founded in 1961 as Southwest Venture Capital Corp., the company operates under the regulatory framework of the Investment Company Act of 1940. Headquartered in Dallas, Texas, Capital Southwest maintains an investment portfolio composed of debt and equity instruments, targeting businesses with established cash flows and proven management teams.

The firm’s primary activities include originating senior secured loans, mezzanine debt, subordinated debt and equity co‐investments. By structuring tailored capital solutions—ranging from growth and acquisition financing to recapitalizations and buyout funding—Capital Southwest seeks to deliver attractive risk‐adjusted returns for its investors. The investment team conducts rigorous due diligence, emphasizing industry expertise and operational diligence to identify opportunities across a variety of sectors.

Capital Southwest typically serves U.S.‐based companies with enterprise values between $50 million and $500 million, spanning industries such as healthcare services, industrials, consumer products and business services. The company leverages its longstanding relationships with private equity sponsors and corporate counterparties to source proprietary deal flow. Geographic concentration remains focused on major economic hubs in North America, where middle‐market demand for flexible capital solutions is robust.

Under the leadership of President and Chief Executive Officer David N. Rolfe, Capital Southwest has continued to refine its investment strategy by balancing income‐oriented debt instruments with selective equity participation. The senior management team, supported by an experienced board of directors, emphasizes disciplined portfolio construction, risk management and active portfolio monitoring. Through this approach, the company aims to support the growth and strategic objectives of its portfolio companies while generating stable returns for its shareholders.

Key Stats

• Today's Range: $291.18 to $306.00
• 50-Day Range: $300.91 to $336.43
• 52-Week Range: $249.84 to $436.50
• Volume: 113,187 shs
• Average Volume: 118,115 shs
• Market Capitalization: $4.93 billion
• P/E Ratio: 35.07
• Dividend Yield: 0.37%
• Price Target: $347.00
• Consensus Rating: Hold

Capital Southwest Stock Analysis - MarketRank™

Capital Southwest scored higher than 35% of companies evaluated by MarketBeat. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.0 / 5
• Analyst Rating: Hold

Consensus Rating

Capital Southwest has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 4 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Capital Southwest has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: 12.25%

Earnings Growth

Earnings for Capital Southwest are expected to grow by 12.25% in the coming year, from $8.49 to $9.53 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Capital Southwest is 35.17, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 26.63.

Price to Earnings Ratio vs. Sector

The P/E ratio of Capital Southwest is 35.17, which means that it is trading at a more expensive P/E ratio than the Financial Services sector average P/E ratio of about 13.92.

Price to Book Value per Share Ratio

Capital Southwest has a P/B Ratio of 4.73. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: N/A
• Short Interest Level: N/A

Short Interest

There is no current short interest data available for CSW.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Capital Southwest has a dividend yield of 0.36%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Capital Southwest has been increasing its dividend for 6 years.

Dividend Coverage

The dividend payout ratio of Capital Southwest is 12.84%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Capital Southwest will have a dividend payout ratio of 11.33% next year. This indicates that Capital Southwest will be able to sustain or increase its dividend.

Sustainability and ESG

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

Short Interest

There is no current short interest data available for CSW.

News and Social Media

• Score: 0.6 / 5
• News Sentiment: N/A

News Coverage This Week

MarketBeat has tracked 1 news article for Capital Southwest this week, compared to 7 articles on an average week.

Search Interest

1 people have searched for CSW on MarketBeat in the last 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Capital Southwest insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,044,156.00 in company stock.

Percentage Held by Insiders

Only 1.40% of the stock of Capital Southwest is held by insiders.

Percentage Held by Institutions

82.79% of the stock of Capital Southwest is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

CSW Stock Analysis - Frequently Asked Questions

How have CSW shares performed this year?

Capital Southwest's stock was trading at $352.80 on January 1st, 2025. Since then, CSW stock has decreased by 16.6% and is now trading at $294.39.

How were Capital Southwest's earnings last quarter?

Capital Southwest Corporation (NYSE:CSW) posted its earnings results on Thursday, May, 22nd. The basic materials company reported $2.24 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.01. The basic materials company had revenue of $230.55 million for the quarter, compared to analysts' expectations of $232.82 million. Capital Southwest had a net margin of 15.53% and a trailing twelve-month return on equity of 15.72%.
Read the conference call transcript.

Who are Capital Southwest's major shareholders?

Capital Southwest's top institutional investors include Harbor Capital Advisors Inc. (0.18%), Wealth Enhancement Advisory Services LLC (0.02%), HMS Capital Management LLC (0.01%) and Argent Capital Management LLC (0.01%). Insiders that own company stock include Joseph B Armes, Don Sullivan, James E Perry, Luke Alverson and Robert M Swartz.
View institutional ownership trends.

How do I buy shares of Capital Southwest?

Shares of CSW 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.

Company Calendar

• Record date for 5/9 Dividend: 4/25/2025
• Ex-Dividend for 5/9 Dividend: 4/25/2025
• Dividend Payable: 5/09/2025
• Last Earnings: 5/22/2025
• Today: 7/15/2025
• Record date for 8/8 Dividend: 7/25/2025
• Next Earnings (Estimated): 7/30/2025
• Dividend Payable: 8/08/2025
• Fiscal Year End: 3/31/2026

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Financial Services
• Industry: Asset Management
• Sub-Industry: Chemicals
• Current Symbol: NYSE:CSW
• Previous Symbol: NYSE:CSW
• CIK: 1624794
• Web: www.capitalsouthwest.com
• Phone: (214) 445-2400
• Fax: 972-233-7362
• Employees: 2,400
• Year Founded: N/A

Price Target and Rating

• Average Price Target for Capital Southwest: $347.00
• High Price Target: $400.00
• Low Price Target: $305.00
• Potential Upside/Downside: +16.9%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): $8.41
• Trailing P/E Ratio: 35.46
• Forward P/E Ratio: 34.95
• P/E Growth: N/A
• Net Income: $101.65 million
• Net Margins: 15.53%
• Pretax Margin: 20.45%
• Return on Equity: 15.72%
• Return on Assets: 10.93%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 4.18
• Quick Ratio: 2.68

Sales & Book Value

• Annual Sales: $878.30 million
• Price / Sales: 5.68
• Cash Flow: $9.04 per share
• Price / Cash Flow: 32.84
• Book Value: $62.21 per share
• Price / Book: 4.77

Miscellaneous

• Outstanding Shares: 16,808,000
• Free Float: 16,548,000
• Market Cap: $4.99 billion
• Optionable: Optionable
• Beta: 0.88