Capital Southwest Corporation (CSWC) 10-Year Financial Performance & Capital Metrics

CSWC • • Banking & Credit

Financial ServicesAsset ManagementBusiness Development Companies (BDCs)Middle Market Lenders

AboutCapital 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 ranging from $5 million to $50 million and debt investments between $5 million and $20 million and co-invest in transaction size up to $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.Show more

Net Interest Income $132M +12.1%
Total Revenue $164M +7.7%
Net Income $71M -15.4%
Return on Equity 8.61% -30.5%
Net Interest Margin 7.01% -7.3%
Efficiency Ratio 17.97% +11.8%
ROA 4.1% -30.8%
Equity / Assets 46.93% -3.3%
Book Value per Share 17.26 -7.0%
Tangible BV/Share 17.26 -7.0%
Debt/Equity 1.08 +6.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong NIM of 7.0%
✓Efficient operations: 18.0% efficiency ratio
✓Well capitalized: 46.9% equity/assets
✓Trading near 52-week high
✓Trading at only 1.4x book value

✗Weaknesses

✗Weak Piotroski F-Score: 1/9
✗Dividend payout exceeds 100% of earnings
✗Shares diluted 25.7% in last year

Price & Volume

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Growth Metrics

Revenue CAGR

10Y9.5%

5Y60.05%

3Y16.75%

TTM-

Profit (Net Income) CAGR

10Y2.82%

5Y-

3Y18.11%

TTM14.24%

EPS CAGR

10Y-8.15%

5Y-

3Y-7.71%

TTM1.2%

ROCE

10Y Avg5.03%

5Y Avg5.62%

3Y Avg4.74%

Latest4.62%

Peer Comparison

Middle Market Lenders

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
GSBDGoldman Sachs BDC, Inc.	1.08B	9.43	17.15	-57.7%	32.67%	9.15%	18.68%	1.23
CSWCCapital Southwest Corporation	1.36B	23.72	16.14	7.67%	43.07%	9.13%		1.08
HCXYHercules Capital, Inc.	2.36B	25.18	15.64	-9.71%	62.54%	14.13%		0.90
TRINITrinity Capital Inc. 7.875% Notes Due 2029	1.91B	25.41	12.10	29.68%	50.98%	15.22%	4.92%	1.08
HTGCHercules Capital, Inc.	3.45B	18.97	11.78	-12.79%	61.03%	14.17%		0.90
TSLXSixth Street Specialty Lending, Inc.	2.12B	22.40	11.03	-2.72%	51.86%	11.83%	8.85%	1.18
MAINMain Street Capital Corporation	5.75B	64.20	10.97	18.32%	70.11%	18.28%		0.76
GBDCGolub Capital BDC, Inc.	3.68B	13.95	9.82	80.52%	46.2%	9.4%

Profit & Loss

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Net Interest Income+	4.93M	11.59M	17M	25.12M	31.08M	38.35M	48.55M	76.21M	117.66M	131.91M
NII Growth %	-0.47%	1.35%	0.47%	0.48%	0.24%	0.23%	0.27%	0.57%	0.54%	0.12%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	4.93M	12.58M	21.87M	37.3M	46.99M	56.29M	68.47M	105.08M	160.75M	186.87M
Interest Expense	0	989K	4.88M	12.18M	15.84M	17.94M	19.92M	28.87M	43.09M	54.96M
Loan Loss Provision	0	0	0	0	0	-17.94M	0	0	0	0
Non-Interest Income+	9.62M	26.8M	36.19M	23.75M	-31.39M	16.28M	34.46M	-14.76M	-8.6M	-23.06M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	14.55M	39.38M	58.07M	61.05M	15.6M	72.58M	102.93M	90.33M	152.15M	163.81M
Revenue Growth %	-0.78%	1.71%	0.47%	0.05%	-0.74%	3.65%	0.42%	-0.12%	0.68%	0.08%
Non-Interest Expense	21.22M	12.82M	13.82M	14.95M	15.91M	17.02M	36.16M	21.39M	24.46M	29.44M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	-6.68M	25.58M	39.37M	33.93M	-16.14M	55.56M	46.84M	40.07M	84.6M	79.41M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-1.12%	4.83%	0.54%	-0.14%	-1.48%	4.44%	-0.16%	-0.14%	1.11%	-0.06%
Pretax Income+	-6.68M	25.58M	39.37M	33.93M	-16.14M	55.56M	46.84M	40.07M	84.6M	79.41M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	-1.28M	2.1M	62K	870K	6.21M	4.68M	4.03M	6.97M	1.21M	8.87M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	-5.4M	23.47M	39.31M	33.06M	-22.35M	50.88M	42.81M	33.09M	83.39M	70.55M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-1.1%	5.35%	0.67%	-0.16%	-1.68%	3.28%	-0.16%	-0.23%	1.52%	-0.15%
Net Income (Continuing)	-5.4M	23.47M	39.31M	33.06M	-22.35M	50.88M	42.81M	33.09M	83.39M	70.55M
EPS (Diluted)+	-0.34	1.48	2.44	1.98	-1.24	2.67	1.87	1.10	2.05	1.47
EPS Growth %	-1.1%	5.35%	0.65%	-0.19%	-1.63%	3.15%	-0.3%	-0.41%	0.86%	-0.28%
EPS (Basic)	-0.35	1.48	2.45	1.98	-1.24	2.67	1.87	1.10	2.05	1.47
Diluted Shares Outstanding	15.72M	15.88M	16.14M	16.73M	18M	19.06M	22.84M	30.02M	40.73M	51.19M

Balance Sheet

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	95.97M	22.39M	7.91M	9.92M	13.74M	31.61M	11.43M	21.59M	32.27M	43.22M
Short Term Investments	0	0	0	0	0	0	0	0	0	0
Total Investments+	0	0	0	0	0	0	0	0	0	0
Investments Growth %	-	-	-	-	-	-	-	-	-	-
Long-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	0	0	0	0	0	0	0	0	0	0
Other Assets	184.21M	297.59M	401.87M	529.62M	559.37M	693.27M	948.18M	1.22B	1.49B	1.81B
Total Current Assets	97.94M	26.15M	13.57M	20.42M	24.18M	42.32M	25.77M	40.66M	62.48M	75.54M
Total Non-Current Assets	186.55M	299.6M	403.92M	531.42M	560.77M	693.27M	948.18M	1.22B	1.49B	1.81B
Total Assets+	284.49M	325.75M	417.49M	551.84M	584.96M	735.58M	973.96M	1.26B	1.56B	1.88B
Asset Growth %	-0.63%	0.15%	0.28%	0.32%	0.06%	0.26%	0.32%	0.29%	0.24%	0.21%
Return on Assets (ROA)	-0.01%	0.08%	0.11%	0.07%	-0.04%	0.08%	0.05%	0.03%	0.06%	0.04%
Accounts Payable	625K	7.19M	4.53M	0	0	0	0	0	0	0
Total Debt+	0	25M	95.31M	216.1M	303.3M	381.3M	528.59M	637.64M	770.85M	956.07M
Net Debt	-95.97M	2.61M	87.4M	206.18M	289.55M	349.69M	517.16M	616.06M	738.58M	912.84M
Long-Term Debt	0	25M	95.31M	216.1M	303.3M	381.3M	528.59M	637.64M	770.85M	956.07M
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Other Liabilities	11.23M	8.49M	9.37M	9.78M	9.44M	18.03M	24.5M	29.63M	30.23M	43.14M
Total Current Liabilities	625K	7.19M	4.53M	0	0	0	0	0	0	0
Total Non-Current Liabilities	11.23M	33.49M	104.68M	225.88M	312.74M	399.33M	553.09M	667.28M	801.08M	999.21M
Total Liabilities	11.86M	40.68M	109.2M	225.88M	312.74M	399.33M	553.09M	667.28M	801.08M	999.21M
Total Equity+	272.63M	285.07M	308.29M	325.96M	272.22M	336.25M	420.87M	590.41M	755.68M	883.63M
Equity Growth %	-0.64%	0.05%	0.08%	0.06%	-0.16%	0.24%	0.25%	0.4%	0.28%	0.17%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	-0.01%	0.08%	0.13%	0.1%	-0.07%	0.17%	0.11%	0.07%	0.12%	0.09%
Book Value per Share	17.34	17.95	19.10	19.48	15.12	17.64	18.43	19.67	18.55	17.26
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	4.52M	4.59M	4.63M	4.96M	5.08M	5.84M	6.83M	9.6M	11.26M	13.23M
Additional Paid-in Capital	262.54M	261.47M	260.71M	281.2M	310.85M	356.45M	448.24M	646.59M	796.95M	959.12M
Retained Earnings	-307K	-1.46M	66.89M	63.73M	-19.77M	-2.1M	-10.26M	-41.84M	-52.53M	-88.72M
Accumulated OCI	0	0	0	0	0	0	0	0	0	0
Treasury Stock	-23.94M	-23.94M	-23.94M	-23.94M	-23.94M	-23.94M	-23.94M	-23.94M	0	0
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Mar 2025
Cash from Operations+	-111.51M	-89.56M	-63.86M	-94.71M	24.91M	-182.68M	-182.68M	-227.1M	-188.5M	-217.26M
Operating CF Growth %	-1.57%	0.2%	0.29%	-0.48%	1.26%	-8.33%	0%	-0.24%	0.17%	-0.15%
Net Income	-5.4M	23.47M	39.31M	33.06M	-22.35M	42.81M	42.81M	33.09M	83.39M	70.55M
Depreciation & Amortization	86K	459K	927K	1.39M	2.4M	2.23M	5.92M	4.32M	4.3M	5.87M
Deferred Taxes	0	0	0	0	0	0	0	0	-119K	0
Other Non-Cash Items	-107.71M	-105.74M	-105.09M	-129.44M	50.42M	-225.21M	-231.29M	-265.63M	-272.33M	-288.94M
Working Capital Changes	1.52M	-7.75M	993K	288K	-5.57M	-2.52M	-3.7M	-2.59M	-3.86M	-4.73M
Cash from Investing+	0	0	0	0	-72.85M	-2M	-2M	-281K	-13K	-1.67M
Purchase of Investments	0	0	0	0	-196.61M	0	0	0	0	-620.46M
Sale/Maturity of Investments	0	0	0	0	1000K	0	0	0	0	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	0	0	0	0	0	0	0	0
Other Investing	0	0	0	0	0	0	0	0	0	323.89M
Cash from Financing+	-18.32M	15.98M	49.38M	96.72M	51.77M	164.49M	164.49M	237.53M	199.2M	231.52M
Dividends Paid	-14.54M	-5.99M	-18.59M	-42.53M	-50.34M	-58.62M	-58.62M	-71.1M	-102.92M	-125.27M
Share Repurchases	0	0	-588K	-185K	-9.21M	0	-1.41M	-1.02M	0	0
Stock Issued	0	0	0	18.89M	25.98M	98.14M	0	0	181.45M	178.49M
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	0	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Financing	-3.78M	-3.03M	-2.22M	28K	-418K	-20.47M	79.08M	201.61M	-11.25M	-4.27M
Net Change in Cash+	-129.83M	-73.58M	-14.48M	2.02M	3.82M	-20.18M	-20.18M	10.15M	10.69M	12.6M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	225.8M	95.97M	22.39M	7.91M	9.92M	31.61M	31.61M	11.43M	21.59M	32.27M
Cash at End	95.97M	22.39M	7.91M	9.92M	13.74M	11.43M	11.43M	21.59M	32.27M	44.87M
Interest Paid	0	0	0	0	0	0	18.4M	25.47M	0	0
Income Taxes Paid	0	0	0	0	0	0	0	0	0	0
Free Cash Flow+	-111.51M	-89.56M	-63.86M	-94.71M	24.91M	-184.67M	-184.67M	-227.38M	-188.51M	-217.26M
FCF Growth %	-1.57%	0.2%	0.29%	-0.48%	1.26%	-8.41%	0%	-0.23%	0.17%	-0.15%

Banking Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Return on Equity (ROE)	-1.04%	8.42%	13.25%	10.42%	-7.47%	16.72%	11.31%	6.54%	12.39%	8.61%
Return on Assets (ROA)	-1.02%	7.69%	10.58%	6.82%	-3.93%	7.71%	5.01%	2.97%	5.93%	4.1%
Net Interest Margin	1.73%	3.56%	4.07%	4.55%	5.31%	5.21%	4.98%	6.06%	7.56%	7.01%
Efficiency Ratio	145.91%	32.55%	23.81%	24.48%	101.98%	23.44%	35.13%	23.68%	16.08%	17.97%
Equity / Assets	95.83%	87.51%	73.84%	59.07%	46.54%	45.71%	43.21%	46.94%	48.54%	46.93%
Book Value / Share	17.34	17.95	19.1	19.48	15.12	17.64	18.43	19.67	18.55	17.26
NII Growth	-47.29%	135.13%	46.64%	47.8%	23.72%	23.39%	26.58%	56.99%	54.39%	12.11%
Dividend Payout	-	25.53%	47.28%	128.67%	-	115.21%	94.14%	214.86%	117.82%	177.56%

Frequently Asked Questions

Valuation & Price

Capital Southwest Corporation (CSWC) has a price-to-earnings (P/E) ratio of 16.1x. This is roughly in line with market averages.

Growth & Financials

Capital Southwest Corporation (CSWC) grew revenue by 7.7% over the past year. This is steady growth.

Yes, Capital Southwest Corporation (CSWC) is profitable, generating $86.4M in net income for fiscal year 2025 (43.1% net margin).

Dividend & Returns

Yes, Capital Southwest Corporation (CSWC) pays a dividend with a yield of 10.32%. This makes it attractive for income-focused investors.

Capital Southwest Corporation (CSWC) has a return on equity (ROE) of 8.6%. This is below average, suggesting room for improvement.

Industry Metrics

Capital Southwest Corporation (CSWC) has a net interest margin (NIM) of 7.0%. This indicates healthy earnings from lending activities.

Capital Southwest Corporation (CSWC) has an efficiency ratio of 18.0%. This is excellent, indicating strong cost control.

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