Capital Southwest Corporation (CSWC) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Asset Management
EV/EBITDA
↑
27.57
↑+30% vs avg
5yr avg: 21.14
30Y Low0.7·High53.5
P/FCF
N/A
—
5yr avg: N/A
30Y Low1.4·High78.2
P/B Ratio
↑
1.40
+15% vs avg
5yr avg: 1.22
30Y Low0.2·High1.3
ROE
↓
8.6%
↑-23% vs avg
5yr avg: 11.1%
30Y Low-28%·High34%
Debt/EBITDA
↑
11.21
+7% vs avg
5yr avg: 10.43
30Y Low0.5·High38.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CSWC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Capital Southwest Corporation trades at 16.5x earnings, 28% above its 5-year average of 12.9x, sitting at the 100th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.4x, the stock trades at a premium of 23%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $1.1B | $1.0B | $534M | $542M | $422M | $206M | $352M | $275M | $268M | $218M |
| Enterprise Value | $2.4B | $2.1B | $1.8B | $1.1B | $1.1B | $772M | $495M | $558M | $362M | $271M | $122M |
| P/E Ratio → | 16.46 | 15.18 | 12.18 | 16.16 | 12.69 | 8.30 | — | 10.63 | 6.98 | 11.43 | — |
| P/S Ratio | 8.78 | 6.97 | 6.68 | 5.91 | 5.27 | 5.82 | 13.18 | 5.77 | 4.73 | 6.82 | 14.99 |
| P/B Ratio | 1.40 | 1.29 | 1.35 | 0.90 | 1.29 | 1.26 | 0.76 | 1.08 | 0.89 | 0.94 | 0.80 |
| P/FCF | — | — | — | — | — | — | 8.25 | — | — | — | — |
| P/OCF | — | — | — | — | — | — | 8.25 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
CSWC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Capital Southwest Corporation's enterprise value stands at 27.6x EBITDA, 30% above its 5-year average of 21.1x. The Financial Services sector median is 11.5x, placing the stock at a 141% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.55 | 11.54 | 12.73 | 10.29 | 10.64 | 31.74 | 9.14 | 6.24 | 6.88 | 8.40 |
| EV / EBITDA | 27.57 | 24.10 | 19.74 | 26.85 | 21.58 | 13.42 | — | 15.81 | 8.99 | 10.41 | — |
| EV / EBIT | 29.61 | 25.88 | 20.75 | 28.70 | 22.61 | 13.90 | — | 16.45 | 9.20 | 10.60 | — |
| EV / FCF | — | — | — | — | — | — | 19.88 | — | — | — | — |
CSWC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Capital Southwest Corporation earns an operating margin of 48.5%, significantly above the Financial Services sector average of 21.4%. Operating margins have expanded from 44.4% to 48.5% over the past 3 years, signaling improving operational efficiency. ROE of 8.6% is modest, trailing the sector median of 9.5%. ROIC of 3.5% represents below-average returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 66.5% | 66.5% | 71.7% | 68.0% | 80.6% | 100.0% | -1.5% | 80.1% | 91.6% | 97.5% | 100.0% |
| Operating Margin | 48.5% | 48.5% | 55.6% | 44.4% | 45.5% | 76.6% | -103.5% | 55.6% | 67.8% | 64.9% | -45.9% |
| Net Profit Margin | 43.1% | 43.1% | 54.8% | 36.6% | 41.6% | 70.1% | -143.3% | 54.1% | 67.7% | 59.6% | -37.1% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.6% | 8.6% | 12.4% | 6.5% | 11.3% | 16.7% | -7.5% | 10.4% | 13.2% | 8.4% | -1.0% |
| ROA | 4.1% | 4.1% | 5.9% | 3.0% | 5.0% | 7.7% | -3.9% | 6.8% | 10.6% | 7.7% | -1.0% |
| ROIC | 3.5% | 3.5% | 4.6% | 2.8% | 4.2% | 6.4% | -2.2% | 5.4% | 8.3% | 6.6% | -1.0% |
| ROCE | 4.6% | 4.6% | 6.0% | 3.6% | 5.5% | 8.4% | -2.8% | 7.0% | 10.8% | 8.5% | -1.3% |
CSWC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Capital Southwest Corporation carries a Debt/EBITDA ratio of 11.2x, which is highly leveraged (172% above the sector average of 4.1x). Net debt stands at $913M ($956M total debt minus $43M cash). Interest coverage of just 1.4x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.08 | 1.08 | 1.02 | 1.08 | 1.26 | 1.13 | 1.11 | 0.66 | 0.31 | 0.09 | — |
| Debt / EBITDA | 11.21 | 11.21 | 8.67 | 14.89 | 10.77 | 6.63 | — | 6.12 | 2.37 | 0.96 | — |
| Net Debt / Equity | — | 1.03 | 0.98 | 1.04 | 1.23 | 1.04 | 1.06 | 0.63 | 0.28 | 0.01 | -0.35 |
| Net Debt / EBITDA | 10.70 | 10.70 | 8.31 | 14.39 | 10.54 | 6.08 | — | 5.84 | 2.17 | 0.10 | — |
| Debt / FCF | — | — | — | — | — | — | 11.63 | — | — | — | — |
| Interest Coverage | 1.44 | 1.44 | 1.96 | 1.39 | 2.35 | 3.10 | -1.02 | 2.79 | 8.08 | 25.86 | — |
CSWC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | — | — | — | — | — | — | 3.00 | 3.64 | 156.70 |
| Quick Ratio | — | — | — | — | — | — | — | — | 3.00 | 3.64 | 156.70 |
| Cash Ratio | 1.75 | — | — | — | — | — | — | — | 1.75 | 3.11 | 153.55 |
| Asset Turnover | — | 0.09 | 0.10 | 0.07 | 0.11 | 0.10 | 0.03 | 0.11 | 0.14 | 0.12 | 0.05 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
CSWC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Capital Southwest Corporation returns 10.1% to shareholders annually primarily through dividends. The payout ratio exceeds 100% at 177.6%, meaning the company is paying out more than it earns — this level is unsustainable long-term without earnings recovery. The earnings yield of 6.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 10.1% | 11.0% | 9.7% | 13.3% | 7.4% | 13.9% | 24.5% | 12.1% | 6.8% | 2.2% | 6.7% |
| Payout Ratio | 177.6% | 177.6% | 117.8% | 214.9% | 94.1% | 115.2% | — | 128.7% | 47.3% | 25.5% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.1% | 6.6% | 8.2% | 6.2% | 7.9% | 12.0% | — | 9.4% | 14.3% | 8.8% | — |
| FCF Yield | — | — | — | — | — | — | 12.1% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.2% | 0.3% | 0.0% | 4.5% | 0.1% | 0.2% | 0.0% | 0.0% |
| Total Shareholder Yield | 10.1% | 11.0% | 9.7% | 13.5% | 7.7% | 13.9% | 29.0% | 12.1% | 7.0% | 2.2% | 6.7% |
| Shares Outstanding | — | $51M | $41M | $30M | $23M | $19M | $18M | $17M | $16M | $16M | $16M |
Peer Comparison
Compare CSWC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CSWCYou | $1B | 16.5 | 27.6 | — | 66.5% | 48.5% | 8.6% | 3.5% | 11.2 |
 ARCC | $14B | 10.3 | 13.2 | 12.0 | 75.7% | 69.7% | 9.4% | 5.7% | 7.3 |
 GBDC | $4B | 9.4 | 12.2 | — | 81.5% | 78.9% | 9.4% | 5.9% | 7.1 |
 TPVG | $226M | 4.6 | 8.9 | — | 83.5% | 77.9% | 14.1% | 7.2% | 6.2 |
 SLRC | $761M | 8.2 | 11.6 | — | 73.3% | 72.9% | 9.3% | 5.8% | 7.0 |
 PFLT | $914M | 12.8 | 38.0 | 9.6 | 45.6% | 39.4% | 6.8% | 2.1% | 26.3 |
 TRIN | $1B | 8.3 | 12.5 | — | 81.6% | 77.3% | 15.3% | 7.9% | 6.1 |
 OCSL | $1B | 32.1 | 16.6 | 7.7 | 87.2% | 50.4% | 2.3% | 3.7% | 9.8 |
 FDUS | $705M | 8.0 | 7.2 | — | 72.6% | 76.1% | 11.8% | 8.6% | 1.9 |
 MAIN | $5B | 9.8 | 13.3 | — | 83.0% | 74.3% | 19.3% | 8.8% | 3.9 |
 HTGC | $3B | 8.9 | 14.4 | — | 87.2% | 66.7% | 16.2% | 6.6% | 6.3 |
| Financial Services Median | — | 13.4 | 11.5 | 10.7 | 62.9% | 21.4% | 9.5% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCSWC — Frequently Asked Questions
Quick answers to the most common questions about buying CSWC stock.
What is Capital Southwest Corporation's P/E ratio?
Capital Southwest Corporation's current P/E ratio is 16.5x. The historical average is 5.9x. This places it at the 100th percentile of its historical range.
What is Capital Southwest Corporation's EV/EBITDA?
Capital Southwest Corporation's current EV/EBITDA is 27.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.0x.
What is Capital Southwest Corporation's ROE?
Capital Southwest Corporation's return on equity (ROE) is 8.6%. The historical average is 8.4%.
Is CSWC stock overvalued?
Based on historical data, Capital Southwest Corporation is trading at a P/E of 16.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Capital Southwest Corporation's dividend yield?
Capital Southwest Corporation's current dividend yield is 10.12% with a payout ratio of 177.6%.
What are Capital Southwest Corporation's profit margins?
Capital Southwest Corporation has 66.5% gross margin and 48.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Capital Southwest Corporation have?
Capital Southwest Corporation's Debt/EBITDA ratio is 11.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.