Capital Southwest Corp (CSWC) stock analysis

CSWCNasdaqFiscal year ends March 31

Financials through Q2 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 2, 2026Score 13/3010% below fair value

$23.50−0.21 (-0.89%)

Close on Nov 12, 2026Market cap $1.50BP/E 14.2Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed13 of 30 checks passed

Capital Southwest passes 13 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 3/6
Growth: 1/6
Past performance: 2/6
Financial health: 4/6
Dividend: 3/6

What stands out

Trading below fair value
The share price of $23.71 is below our fair value estimate of $26.27.
No debt
Capital Southwest has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 17.3% a year on average over the last five fiscal years.
Earnings growth accelerating
Net income grew 23.2% over the last twelve months, against a 5-year average of 17.3% a year.

What to watch

Margin of safety under 20%
The price is 9.7% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 10.4% over the last twelve months and averaged 10.2% over five years; we look for 15% on both.
EPS growing under 10% a year
Diluted EPS grew -6.0% a year over the last three fiscal years.
Elevated bankruptcy risk
The Altman Z-score is 0.58; above 3 is the safe zone and below 1.8 the distress zone.

Valuation3/6

P/E above its 5-year median
Capital Southwest's P/E of 14.4 is above its own 5-year median of 10.7.
P/E below the industry
Capital Southwest's P/E of 14.4 is below the US market median of 19.5.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Capital Southwest's price-to-book of 1.37 is below the US market median of 1.92.
Trading below fair value
The share price of $23.71 is below our fair value estimate of $26.27.
Margin of safety under 20%
The price is 9.7% below fair value, less than the 20% cushion we look for.

Growth1/6

Revenue growth over 3 years
Needs three years of positive revenue.
EPS growing under 10% a year
Diluted EPS grew -6.0% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 23.2% over the last twelve months, against a 5-year average of 17.3% a year.
Growth against the industry
Needs revenue for this year and last.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
This company does not report gross profit.

Past performance2/6

Return on equity under 15%
Return on equity was 10.4% over the last twelve months and averaged 10.2% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Capital Southwest's return on equity of 10.4% is above the US market median of 3.5%.
Earnings grew over 5 years
Net income grew 17.3% a year on average over the last five fiscal years.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health4/6

No debt
Capital Southwest has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term liquidity
The balance sheet is not split into current and non-current items.
Elevated bankruptcy risk
The Altman Z-score is 0.58; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

Pays a dividend
Capital Southwest paid dividends worth 10.8% of the share price over the last twelve months.
Yield above Treasuries
The 10.8% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Capital Southwest yields 10.8%.
Dividend stability
Fewer than five years of dividend history.
Not covered by earnings
Dividends take 147% of net income, leaving little room.
Cash-flow cover
Needs dividends paid and free cash flow.

Fair value

How we estimate it

Our estimate per share

$26.27

The share price is 10% below this estimate.

20%+ below

Near fair value

20%+ above

$23.71Price

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	15.5×	10.7×	19.5×	$25.63	80%
P/B	1.7×	1.3×	1.9×	$28.81	20%
Fair value				$26.27	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 10.7
US market median 19.5

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day: $11.06M
Value traded per 1% price move: $15.47M

Downside

Low risk

Typical loss in a bad month: 7.9%
Volatility (annualized): 18%
Sharpe ratio, 1 year: 0.53
Beta to the S&P 500 (5Y): 0.72

Typical bad-month loss, week by week

Margins need revenue and profit figures

This company does not report the lines needed to calculate margins.

Per year	1 year	3 years	5 years	10 years	Five-year pace
Net income	+60.2%	+50.6%	+17.3%	–
EPS, diluted	+29.3%	-6.0%	+2.7%	–

Measure	FY2017	FY2021	FY2026
Return on equity	–	16.7%	11.9%
Return on assets	–	–	5.6%
Diluted shares	16M	19M	66M

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