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Upturn AI SWOT - About
CSWC 
Capital Southwest Corporation (CSWC)
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Upturn Advisory Summary
03/27/2025: CSWC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 8.54% | Avg. Invested days 41 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.14B USD | Price to earnings Ratio 16.03 | 1Y Target Price 24 |
Price to earnings Ratio 16.03 | 1Y Target Price 24 | ||
Volume (30-day avg) 587528 | Beta 1.28 | 52 Weeks Range 20.07 - 25.04 | Updated Date 04/2/2025 |
52 Weeks Range 20.07 - 25.04 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 11.39% | Basic EPS (TTM) 1.4 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 33.49% | Operating Margin (TTM) 87.35% |
Management Effectiveness
Return on Assets (TTM) 6.72% | Return on Equity (TTM) 8.57% |
Valuation
Trailing PE 16.03 | Forward PE 9.32 | Enterprise Value 2024737536 | Price to Sales(TTM) 5.72 |
Enterprise Value 2024737536 | Price to Sales(TTM) 5.72 | ||
Enterprise Value to Revenue 20.95 | Enterprise Value to EBITDA - | Shares Outstanding 50581800 | Shares Floating 48374954 |
Shares Outstanding 50581800 | Shares Floating 48374954 | ||
Percent Insiders 4.36 | Percent Institutions 30.85 |
Analyst Ratings
Rating 3.71 | Target Price 25.17 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Capital Southwest Corporation
Company Overview
History and Background
Capital Southwest Corporation was founded in 1961 as a public venture capital firm. It has evolved into a business development company (BDC), focusing on providing capital to middle-market companies.
Core Business Areas
- Middle Market Direct Lending: Provides first lien, unitranche and second lien debt and makes minority equity investments in middle market companies.
Leadership and Structure
Bowen Diehl is the President and CEO. The company operates with a traditional BDC structure, governed by a board of directors and managed by an investment team.
Top Products and Market Share
Key Offerings
- Debt Financing: Primarily provides debt financing (first lien, unitranche, second lien) to middle-market companies. Market share data is not readily available at the product level for individual BDC's. Competitors include Ares Capital, Main Street Capital and Prospect Capital.
- Equity Investments: Makes minority equity co-investments alongside debt investments. Similar to debt financing, granular market share information is difficult to source.
Market Dynamics
Industry Overview
The BDC industry is competitive, serving the financing needs of middle-market companies. It's subject to interest rate fluctuations, economic cycles, and regulatory changes.
Positioning
Capital Southwest Corporation is positioned as a lender to middle-market companies, focusing on quality deals with strong management teams. Their competitive advantage lies in their experience and disciplined investment approach.
Total Addressable Market (TAM)
The TAM for middle-market lending is substantial, estimated to be in the hundreds of billions of dollars. Capital Southwest captures a small portion of this market through their niche strategy.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Disciplined investment approach
- Strong balance sheet
- Proven track record
Weaknesses
- Dependence on economic conditions
- Relatively small size compared to larger BDCs
- Potential for credit losses
Opportunities
- Growing middle-market financing demand
- Expansion into new sectors
- Strategic acquisitions
- Increasing interest rates benefiting net interest margin
Threats
- Economic downturns
- Increased competition
- Regulatory changes
- Rising interest rates impacting borrowers
Competitors and Market Share
Key Competitors
- Ares Capital Corporation (ARCC)
- Main Street Capital Corporation (MAIN)
- Prospect Capital Corporation (PSEC)
Competitive Landscape
Capital Southwest competes effectively within the BDC sector. Their smaller size allows them to be nimble and target specific opportunities. Their disciplined investment approach differentiates them from some competitors.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Capital Southwest Corporation has experienced significant growth in recent years, driven by increased investments and effective management.
Future Projections: Analysts project continued growth in earnings and assets under management, supported by a strong pipeline of investment opportunities.
Recent Initiatives: Recent initiatives include expanding into new sectors and increasing their focus on unitranche lending.
Summary
Capital Southwest Corporation is a well-managed BDC with a strong track record and consistent dividend payments. Its disciplined investment approach and focus on quality deals has driven growth. Potential risks include economic downturns and increased competition but its smaller size provides flexibility. Overall, they are positioned well for continued success in the middle-market lending space.
Similar Companies
ARCC
Ares Capital Corporation
ARCC
Ares Capital Corporation
MAIN
Main Street Capital Corporation
MAIN
Main Street Capital Corporation
PSEC
Prospect Capital Corporation
PSEC
Prospect Capital Corporation
TCPC
BlackRock TCP Capital Corp
TCPC
BlackRock TCP Capital Corp
Sources and Disclaimers
Data Sources:
- Capital Southwest Corporation Investor Relations
- SEC Filings (10-K, 10-Q)
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share estimates are approximate and based on publicly available data. Financial data should be verified independently.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Capital Southwest Corporation
Exchange NASDAQ | Headquaters Dallas, TX, United States | ||
IPO Launch date 1990-03-27 | CEO, President & Director Mr. Michael Scott Sarner CPA, CPA | ||
Sector Financial Services | Industry Asset Management | Full time employees 27 | Website https://www.capitalsouthwest.com |
Full time employees 27 | Website https://www.capitalsouthwest.com | ||
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, industry consolidation, 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. The firm is Industry agnostic, but 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, th
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