CSWC

Company Overview — What Does CAPITAL SOUTHWEST CORP Do?

Capital 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. CAPITAL SOUTHWEST CORP (CSWC) is classified as a small-cap stock in the Financials sector, specifically within the Financial Services industry. The company is led by CEO Bowen S. Diehl and employs approximately 20 people, headquartered in DALLAS, Texas. With a market capitalization of $1.3B, CSWC is one of the notable companies in the Financials sector.

CAPITAL SOUTHWEST CORP (CSWC) Stock Rating — Reduce (April 2026)

As of April 2026, CAPITAL SOUTHWEST CORP receives a Reduce rating with a composite score of 37.2/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.CSWC ranks #2,579 out of 4,446 stocks in our coverage universe. Within the Financials sector, CAPITAL SOUTHWEST CORP ranks #671 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

CSWC Stock Price and 52-Week Range

CAPITAL SOUTHWEST CORP (CSWC) currently trades at $22.85. The stock gained $0.18 (0.8%) in the most recent trading session. The 52-week high for CSWC is $23.84, which means the stock is currently trading -4.2% from its annual peak. The 52-week low is $17.46, putting the stock 30.9% above its annual trough. Recent trading volume was 402K shares, suggesting relatively thin trading activity.

Is CSWC Overvalued or Undervalued? — Valuation Analysis

CAPITAL SOUTHWEST CORP (CSWC) carries a value factor score of 44/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 11.47x, compared to the Financials sector average of 14.88x — a discount of 23%. The price-to-book ratio stands at 1.36x, versus the sector average of 1.22x. The price-to-sales ratio is 8.34x, compared to 0.90x for the average Financials stock. On an enterprise value basis, CSWC trades at 75.37x EV/EBITDA, versus 3.26x for the sector.

Overall, CSWC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

CAPITAL SOUTHWEST CORP Profitability — ROE, Margins, and Quality Score

CAPITAL SOUTHWEST CORP (CSWC) earns a quality factor score of 10/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 11.9%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 5.6% versus the sector average of 1.2%.

The operating margin is 52.0% (sector: 21.8%). Net profit margin stands at 76.6%, versus 17.7% for the average Financials stock. Revenue growth is running at 104.7% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

CSWC Debt, Balance Sheet, and Financial Health

CAPITAL SOUTHWEST CORP has a debt-to-equity ratio of 108.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. Total debt on the balance sheet is $1.07B. Cash and equivalents stand at $43M.

CSWC has a beta of 0.84, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for CAPITAL SOUTHWEST CORP is 82/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

CAPITAL SOUTHWEST CORP Revenue and Earnings History — Quarterly Trend

In TTM 2026, CAPITAL SOUTHWEST CORP reported revenue of $163M and earnings per share (EPS) of $0.57. Net income for the quarter was $118M. Gross margin was 32.8%. Operating income came in at $8M.

In Q3 2025, CAPITAL SOUTHWEST CORP reported revenue of $61M and earnings per share (EPS) of $0.57. Net income for the quarter was $33M. Gross margin was 86.9%. Operating income came in at $8M.

In Q3 2026, CAPITAL SOUTHWEST CORP reported revenue of $35M and earnings per share (EPS) of $0.57. Net income for the quarter was $33M. Revenue grew -43.6% year-over-year compared to Q3 2025.

In Q2 2026, CAPITAL SOUTHWEST CORP reported revenue of $34M and earnings per share (EPS) of $0.46. Net income for the quarter was $26M. Revenue grew 13.3% year-over-year compared to Q2 2025.

Over the past 8 quarters, CAPITAL SOUTHWEST CORP has demonstrated a growth trajectory, with revenue expanding from $31M to $163M. Investors analyzing CSWC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

CSWC Dividend Yield and Income Analysis

CAPITAL SOUTHWEST CORP (CSWC) currently pays a dividend yield of 11.7%. At this yield, a $10,000 investment in CSWC stock would generate approximately $$1166.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning CSWC offers above-average income for its sector. With a net margin of 76.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

CSWC Momentum and Technical Analysis Profile

CAPITAL SOUTHWEST CORP (CSWC) has a momentum factor score of 59/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 40/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 8/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

CSWC vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, CAPITAL SOUTHWEST CORP (CSWC) ranks #671 out of 891 stocks based on the Blank Capital composite score. This places CSWC in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing CSWC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CSWC vs S&P 500 (SPY) comparison to assess how CAPITAL SOUTHWEST CORP stacks up against the broader market across all factor dimensions.

CSWC Next Earnings Date

No upcoming earnings date has been announced for CAPITAL SOUTHWEST CORP (CSWC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy CSWC? — Investment Thesis Summary

The quantitative profile for CAPITAL SOUTHWEST CORP suggests caution. The quality score of 10/100 flags below-average profitability. Low volatility (stability score 82/100) reduces downside risk.

In summary, CAPITAL SOUTHWEST CORP (CSWC) earns a Reduce rating with a composite score of 37.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CSWC stock.

Related Resources for CSWC Investors

Explore more research and tools: CSWC vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CSWC head-to-head with peers: CSWC vs WTM, CSWC vs OPY, CSWC vs ACT.