NASDAQ
CSWC
Last Price
US $24.04
KEY FIGURES
MKT CAP
$1.4B
EPS
TTM
$1.96
PEG
TTM
0.31x
P/E
TTM
11.52x
P/S
TTM
5.85x
YIELD
8.56%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
8.61%
Return on equity
ROIC: 3.75%
Valuation History
15.2X
Price to Earnings
EV/EBITDA: 24.1X
Cash flow
Profit margin
27.65%
(FY vs FY)
EBITDA Y/Y
27.50%
(FY vs FY)
Cash flow Y/Y
-0.93%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $24.04
—
Default assumptions
EBITDA Multiple
Fair Value
Market $24.04
—
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Capital Southwest Corporation cash flow to debt ratio of -17.11% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial stability - Healthy cash flow growth.
Capital Southwest Corporation's free cash flow has increased -11.61% from $-218.92M last year to $-193.50M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Capital Southwest Corporation's debt to equity ratio is 1.12, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Capital Southwest Corporation's debt has increased relative to shareholder equity from 1.08 last year to 1.12 today, signaling weakened financials
Financial risk - Net debt/EBITDA.
Capital Southwest Corporation has a net debt to EBITDA ratio of 5.68x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Capital Southwest Corporation earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Capital Southwest Corporation's profit margin has increased (18.17%) in the last year from 43.07% to 50.89%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Capital Southwest Corporation's short-term assets of $64.64M exceed its short-term liabilities of $0.00
Increasing performance - ROA.
Capital Southwest Corporation's return on assets of 5.19% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
Capital Southwest Corporation's return on equity of 11.68%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
Capital Southwest Corporation's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Capital Southwest Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Capital Southwest Corporation has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Capital Southwest Corporation has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Capital Southwest Corporation's yearly earnings has increased 60.17% since last year from $70.55M to $113.00M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Capital Southwest Corporation's yearly revenue has increased 55.92% since last year from $157.73M to $245.94M, signaling increasing performance
Increasing performance - ROIC.
ROIC 5.93% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Capital Southwest Corporation's 3-year revenue CAGR of 39.64% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Capital Southwest Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Capital Southwest Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Capital Southwest Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Capital Southwest Corporation has an earnings yield of 8.45%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Capital Southwest Corporation is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Capital Southwest Corporation has an EV/EBITDA ratio of 17.58x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Capital Southwest Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Capital Southwest Corporation has a price-to-book ratio of 1.32x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Capital Southwest Corporation has a price-to-sales ratio of 6.48x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue