Capital Southwest Corporation (CSWC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Capital Southwest Corporation stock (CSWC) is currently trading at $22.05. Capital Southwest Corporation PE ratio is 11.95. Capital Southwest Corporation PS ratio (Price-to-Sales) is 5.74. Analyst consensus price target for CSWC is $24.40. WallStSmart rates CSWC as Hold.
- CSWC PE ratio analysis and historical PE chart
- CSWC PS ratio (Price-to-Sales) history and trend
- CSWC intrinsic value — DCF, Graham Number, EPV models
- CSWC stock price prediction 2025 2026 2027 2028 2029 2030
- CSWC fair value vs current price
- CSWC insider transactions and insider buying
- Is CSWC undervalued or overvalued?
- Capital Southwest Corporation financial analysis — revenue, earnings, cash flow
- CSWC Piotroski F-Score and Altman Z-Score
- CSWC analyst price target and Smart Rating
Capital Southwest Corporation
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CSWC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Capital Southwest Corporation (CSWC)
CSWC trades at a significant discount to its Graham intrinsic value of $84.71, offering a 73% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Capital Southwest Corporation (CSWC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/book, eps growth. Concerns around peg ratio. Fundamentals are solid but monitor weak areas for improvement.
Capital Southwest Corporation (CSWC) Key Strengths (4)
Keeps $86 of every $100 in revenue after operating costs
Earnings per share surging 59.40% year-over-year
Keeps $46 of every $100 in revenue as net profit
Trading at 1.31x book value, attractively priced
Supporting Valuation Data
Capital Southwest Corporation (CSWC) Areas to Watch (6)
Very expensive relative to growth, significant premium
Premium valuation at 5.7x annual revenue
Low institutional interest, mostly retail-driven
Small-cap company with higher risk but more growth potential
Moderate profitability with room for improvement
Solid revenue growth at 18.20% per year
Supporting Valuation Data
Capital Southwest Corporation (CSWC) Detailed Analysis Report
Overall Assessment
This company scores 65/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.5/10) while 6 fall into concern territory (avg 4.3/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, EPS Growth, Profit Margin. Valuation metrics including Price/Book (1.31) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 85.70%, Profit Margin at 45.50%. Growth metrics are encouraging with EPS Growth at 59.40%.
The Bear Case
The primary concerns are PEG Ratio, Price/Sales, Institutional Own.. Some valuation metrics including PEG Ratio (12.54), Price/Sales (5.74) suggest expensive pricing. Growth concerns include Revenue Growth at 18.20%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.30%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether PEG Ratio improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 18.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, EPS Growth) and negatives (PEG Ratio, Price/Sales). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CSWC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CSWC's Price-to-Sales ratio of 5.74x trades at a deep discount to its historical average of 328.95x (1th percentile). The current valuation is 100% below its historical high of 1910.52x set in Mar 2007, and 1% above its historical low of 5.68x in Mar 2026.
WallStSmart Analysis Synopsis
Data-driven financial summary for Capital Southwest Corporation (CSWC) · FINANCIAL SERVICES › ASSET MANAGEMENT
The Big Picture
Capital Southwest Corporation is a strong growth company balancing expansion with improving profitability. Revenue reached 227M with 18% growth year-over-year. Profit margins are strong at 45.5%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 45.5% and operating margin of 85.7% demonstrate strong pricing power and operational efficiency.
Generating 34M in free cash flow and 34M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Dividend sustainability with a current yield of 10.5%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 415M is significantly higher than cash (43M). Monitor refinancing risk.
Sector dynamics: monitor ASSET MANAGEMENT industry trends, competitive moves, and regulatory changes that could impact Capital Southwest Corporation.
Bottom Line
Capital Southwest Corporation offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(2 last 3 months)
| Insider | Type | Shares |
|---|---|---|
SARNER, MICHAEL SCOTT Director, President and CEO | Buy | +2,694.635 |
| Insider | Type | Shares |
|---|---|---|
BATTIST, CHRISTINE Director | Buy | +600 |
Data sourced from SEC Form 4 filings
Last updated: 10:07:06 AM
About Capital Southwest Corporation(CSWC)
NASDAQ
FINANCIAL SERVICES
ASSET MANAGEMENT
USA
Capital Southwest Corporation (CSWC) is a prominent publicly traded business development company that specializes in offering tailored financing solutions to middle-market businesses. With a focus on strategic debt and equity investments, CSWC aims to generate attractive risk-adjusted returns for its investors while supporting the growth of its portfolio companies across diverse sectors, including healthcare, technology, and manufacturing. The firm combines its deep private equity expertise and extensive industry relationships to drive operational enhancements and create long-term value, positioning itself as a reliable partner in the expansion journey of its clients.