Capital Southwest Corporation CSWC

FinancialsInvestment Banking & Investment ServicesUnited States of America

Last close 23.43 USD on Nov 2, 2026, +15.7% year to date

Quant rating

Quant rating B Rank 187 of 799 in Financials

Growth B 203 of 799
Valuation C 465 of 799
Quality B 135 of 799
Revisions B 169 of 799
Momentum C 443 of 799

Wall Street consensus Buy (2.29)Average target 24.64 USD +5.2%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 1.5B
Enterprise value: 2.7B
52-week range: 19.91 – 25.75
3-year range: 17.99 – 27.20
Dividend yield: 11.12%
Beta (5 years): 0.70
Shares outstanding: 63.7M
Next earnings: Nov 2, 2026

About the company

Capital Southwest Corporation is an internally managed business development company. The Company is a market lending firm focused on supporting the acquisition and growth of middle market businesses with investments across the capital structure, including first lien, second lien and non-control equity co-investments. It specializes in providing customized debt and equity financing to lower middle market (LMM) companies in a broad range of investment segments located primarily in the United States. Its investment objective is to produce attractive risk-adjusted returns by generating current income from its debt investments and capital appreciation from its equity and equity-related investments. It invests primarily in first-lien debt securities, secured by security interests in portfolio company assets. It also invests in equity interests in its portfolio companies alongside its debt securities. It also offers managerial assistance to its portfolio companies.

Growth and profitability fiscal year ends March 31

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	232	204	178	119	82.2	–
Revenue growth	13.5%	14.8%	49.3%	45.1%	20.8%	27.8%
EPS (basic, normalized)	2.05	2.46	2.70	2.29	1.87	–
EPS growth	−16.7%	−8.9%	17.9%	22.5%	–	–
Gross margin	71.3%	73.1%	75.8%	75.8%	75.8%	74.4%
Net margin	49.6%	34.7%	47.0%	27.7%	73.0%	46.4%
ROE	–	14.0%	15.0%	6.6%	11.3%	11.7%

Balance sheet, last quarter
Cash & short-term investments (mil)	48.0
Current ratio	–
Long-term debt (mil)	1,221
Net debt (mil)	1,163
Total equity (mil)	1,106
Net debt / equity	1.05x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			Book value per share			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	P/B	Mean est.	Growth	P/E
2026 actual	232	+13.5%	11.4x	16.69	−0.8%	1.4x	2.05	−16.7%	11.4x
2027	263	+13.3%	10.1x	16.90	+1.3%	1.4x	2.26	+10.4%	10.4x
2028	296	+12.6%	9.0x	17.29	+2.3%	1.4x	2.36	+4.3%	9.9x
2029	245	−17.2%	10.8x	17.58	+1.7%	1.3x	2.30	−2.5%	10.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	263	0.0%	+0.6%	+1.3%	2.26	−0.6%	+0.8%	+1.3%
2028	296	0.0%	+2.3%	–	2.36	−0.3%	+1.9%	–
2029	245	–	–	–	2.30	–	–	–

Earnings surprises EPS beat in 3 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	46.4	51.4	48.7	52.0	52.4	55.9	56.9	61.4	57.8	61.0
Sales mean (mil)	45.6	49.1	49.3	50.2	52.7	54.6	55.9	57.5	61.6	60.4
Surprise	+1.7%	+4.5%	−1.2%	+3.6%	−0.6%	+2.5%	+1.9%	+6.9%	−6.2%	+1.0%
EPS reported	0.66	0.63	0.66	0.63	0.54	0.59	0.57	0.64	0.55	0.58
EPS mean	0.66	0.65	0.65	0.62	0.61	0.59	0.57	0.57	0.56	0.54
Surprise	+0.6%	−2.4%	+1.4%	+1.4%	−10.8%	+0.8%	+0.6%	+13.1%	−2.4%	+7.5%

Peer comparison Investment Banking & Investment Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
CSWC Capital Southwest Corporation	1.5B	–	49.6%	1.41x	10.4x	9.9x	–	–
ARCC Ares Capital Corp	14.0B	–	42.6%	1.01x	10.3x	10.0x	–	–
BXSL Blackstone Secured Lending Fund	5.5B	–	39.7%	0.93x	8.4x	9.3x	–	–
MAIN Main Street Capital Corp	5.3B	–	87.1%	1.66x	15.0x	14.6x	–	–
OBDC Blue Owl Capital Corp	5.2B	–	33.9%	0.74x	8.1x	8.1x	–	–
OTF Blue Owl Technology Finance Corp	4.5B	–	62.9%	0.59x	16.2x	6.9x	–	–
Mean		–	52.6%	1.06x	11.4x	9.8x	–	–
Median		–	46.1%	0.97x	10.3x	9.6x	–	–

Technical analysis

1M+0.4%
3M+2.0%
1Y+28.8%
3Y+52.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Capital Southwest Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	232	204	178	119	82.2	68.1
Cost of revenue	66.6	55.0	43.1	28.9	19.9	17.9
Gross profit	165	149	135	90.4	62.3	50.1
Selling, general & administrative expenses	28.9	29.0	24.1	21.4	19.0	16.0
Research & development	–	–	–	–	–	–
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	–	–	–	–	–	–
Other operating expenses	0	0	0	0	0	0
Operating income	137	120	111	69.0	43.3	34.1
Net interest income (expense)	−20.3	−47.2	−26.3	−35.6	17.3	20.2
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	116	73.2	84.7	33.4	60.6	54.3
Provision for taxes	1.1	2.3	0.9	0.3	0.6	2.4
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	115	71.0	83.8	33.1	60.0	51.9
Extraordinary items	−2.2	−0.4	−0.4	0	−17.2	−1.0
Net income	113	70.5	83.4	33.1	42.8	50.9
EBIT, normalized	137	120	111	69.0	43.3	34.1
EBITDA, normalized	144	126	115	71.8	45.5	36.1
Basic EPS, normalized	2.05	2.46	2.70	2.29	1.87	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Capital Southwest Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	29.0	43.2	32.3	21.6	11.4	31.6
Receivables	2.2	2.0	7.3	0.6	2.2	0.2
Total inventory	–	–	–	–	–	–
Prepaid expenses	–	–	–	–	–	–
Other current assets	–	–	–	–	–	–
Total current assets	–	–	–	–	–	–
Property, plant & equipment	3.7	3.9	2.4	1.8	–	–
Goodwill	–	–	–	–	–	–
Intangibles	–	–	–	–	–	–
Long-term investments	2,097	1,785	1,477	1,206	937	688
Note receivable	0.7	0.1	0.3	0.4	0.2	0.2
Other long-term assets	75.7	93.5	77.5	49.1	37.2	47.0
Total assets	2,178	1,883	1,557	1,258	974	736
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	–	–	–	–	–	–
Accrued expenses	5.5	6.0	3.8	3.4	5.4	3.0
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	–	–	–	–	–	–
Other current liabilities	–	–	–	–	–	–
Total current liabilities	–	–	–	–	–	–
Long-term debt	1,131	956	771	638	529	381
Minority interest	–	–	–	–	–	–
Other liabilities	35.3	43.1	30.2	29.6	24.5	18.0
Total liabilities	1,167	999	801	667	553	399
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	15.1	13.2	11.3	9.6	6.8	5.8
Additional paid-in capital	1,075	959	797	647	448	356
Retained earnings (accumulated deficit)	−79.0	−88.7	−52.5	−41.8	−10.3	−2.1
Treasury stock	–	–	0	−23.9	−23.9	−23.9
Other equity	0	0	0	0	0	0
Total equity	1,011	884	756	590	421	336
Total liabilities & shareholders' equity	2,178	1,883	1,557	1,258	974	736

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Capital Southwest Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	113	70.5	83.4	33.1	42.8	50.9
Depreciation, depletion & amortization	7.0	5.9	4.3	2.8	2.2	2.0
Deferred taxes	−4.3	4.8	−0.1	6.4	2.4	3.8
Non-cash items	−0.2	31.8	16.9	26.1	0.6	−27.6
Changes in working capital	−309	−330	−293	−295	−231	−97.3
Cash from operations	−194	−217	−188	−227	−183	−68.3
Investing activities
Capital expenditures	−0.3	−1.7	0	−0.3	−2.0	–
Other investing cash flows	0	0	0	0	0	–
Cash from investing	−0.3	−1.7	0	−0.3	−2.0	–
Financing activities
Financing cash flow items	−3.4	−4.3	−11.2	−2.3	−20.5	−0.8
Cash dividends paid	−147	−125	−103	−71.1	−58.6	−39.9
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	329	361	313	311	244	127
Cash from financing	178	232	199	238	164	86.1
Foreign exchange effects	–	–	–	–	–	–
Net change in cash	−15.4	12.6	10.7	10.2	−20.2	17.9
Free cash flow	−194	−219	−189	−227	−185	−68.3

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.