Capital Southwest Corp (CSWC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

TPG, Inc.

Victory Capital Holdings, Inc.

Capital Southwest Corp

Oaktree Specialty Lending Corp.

Barings BDC, Inc.

Virtus Investment Partners, Inc.

Goldman Sachs BDC, Inc.

Sixth Street Specialty Lending, Inc.

New Mountain Finance Corp.

StepStone Group, Inc.

Compass Diversified Holdings

Why is Capital Southwest Corp ?

Strong Long Term Fundamental Strength with a 37.10% CAGR growth in Operating Profits

With a growth in Net Profit of 28.46%, the company declared Very Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at USD 112.04 MM
RAW MATERIAL COST(Y) Fallen by -1.23% (YoY)
CASH AND EQV(HY) Highest at USD 133.29 MM

With ROE of 10.40%, it has a very attractive valuation with a 1.34 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.68%, its profits have risen by 55.1% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 35.12%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Capital Southwest Corp should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Capital Southwest Corp for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Capital Southwest Corp

-1.68%

-0.69

25.24%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.16%

EBIT Growth (5y)

37.10%

EBIT to Interest (avg)

3.23

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

11.16%

Dividend Payout Ratio

157.40%

Pledged Shares

Institutional Holding

35.12%

ROCE (avg)

18.17%

ROE (avg)

10.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.34

EV to EBIT

7.11

EV to EBITDA

6.85

EV to Capital Employed

1.36

EV to Sales

5.87

PEG Ratio

0.45

Dividend Yield

25.08%

ROCE (Latest)

19.10%

ROE (Latest)

10.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 112.04 MM

RAW MATERIAL COST(Y)

Fallen by -1.23% (YoY

CASH AND EQV(HY)

Highest at USD 133.29 MM

NET SALES(Q)

At USD 61.28 MM has Grown at 23.86%

PRE-TAX PROFIT(Q)

Highest at USD 35.12 MM

NET PROFIT(Q)

Highest at USD 34.7 MM

EPS(Q)

Highest at USD 0.54

-3What is not working for the Company

INTEREST(Q)

Highest at USD 18.05 MM

Here's what is working for Capital Southwest Corp

Operating Cash Flow

Highest at USD 112.04 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

At USD 61.28 MM has Grown at 23.86%

over average net sales of the previous four periods of USD 49.48 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 35.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 34.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 34.7 MM has Grown at 62.38%

over average net sales of the previous four periods of USD 21.37 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.54

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 133.29 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -1.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 1.77 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Capital Southwest Corp

Interest

At USD 18.05 MM has Grown at 12.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 18.05 MM

in the last five periods and Increased by 12.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)