Capital Southwest Corporation
Capital Southwest Corporation
Your view on CSWC
Overview
What the company does, where it operates, and who runs it.
About Capital Southwest Corporation
- Industry
- Asset Management
- Sector
- Financial Services
- CEO
- Michael Scott Sarner CPA, CPA
- Headquarters
- 8333 Douglas Avenue, Dallas, TX, US
- Industry
- Asset Management
- Sector
- Financial Services
- CEO
- Michael Scott Sarner CPA, CPA
- Headquarters
- 8333 Douglas Avenue, Dallas, TX, US
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.
Media
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Stock Data
Price chart, volume, and trading data.
Fair Value
What FRC thinks it is worth vs. the current price.
FRC's fair value estimate for Capital Southwest Corporation, and the rating behind it. CSWC last traded at $24.19, 12.7× trailing earnings — the estimate is read against that market price. FRC analysts run the firm's valuation model across the companies on this platform to estimate what each one is worth, rather than republishing a consensus average. Shows the current estimate, our rating, and when it was last revised. A free account covers 7 company valuations a month; a paid subscription is unlimited.
Financial Ratios
Profitability, returns, valuation, and leverage ratios.
Valuation, profitability, liquidity and leverage ratios for Capital Southwest Corporation. Starting points for Capital Southwest Corporation: P/E 12.7, EPS $1.81, beta 0.74 — an Asset Management name. P/E, P/B, EV/EBITDA, margins, return on equity, current ratio and debt coverage, each shown against the company's own history.
Dividend Analysis
Yield, payout ratio, and dividend coverage metrics.
Dividend history, yield and payout sustainability for Capital Southwest Corporation. Capital Southwest Corporation paid $2.56 per share over the last year — a 10.6% yield at the current $24.19 price. Per-share payments, yield over time, payout ratio and growth streak, with coverage measured against free cash flow.
Earnings Analysis
EPS history, beat rate, and upcoming earnings reports.
Reported vs. expected earnings history for Capital Southwest Corporation. Trailing twelve-month EPS for Capital Southwest Corporation stands at $1.81. EPS surprises by quarter, revenue against estimates, and the upcoming reporting date.
Financial Statements
Income statement, balance sheet, and cash flow statements.
Income statement, balance sheet and cash flow history for Capital Southwest Corporation. Capital Southwest Corporation has reported as a listed company since 1980. Annual and quarterly filings with period-over-period comparison, so you can trace how revenue, margins and cash generation have moved.
Comparables
List of peer companies in the same industry.
Capital Southwest Corporation valued side by side against its closest peers. Capital Southwest Corporation is measured against Asset Management peers within the Financial Services sector. Peer-relative multiples and operating metrics, so the valuation is read in the context of its own sector rather than in isolation.
Institutional Ownership
PremiumWhich funds and firms own the stock.
Which institutions hold Capital Southwest Corporation, and how their positions are changing. At a $1.50B market value, institutional positions materially move Capital Southwest Corporation's register. Top holders, position sizes, and quarter-over-quarter accumulation or distribution from regulatory filings. Included with FRC Premium.
Insider Trading
PremiumRecent buying and selling by company executives.
Buying and selling by Capital Southwest Corporation executives and directors. Shares of Capital Southwest Corporation have traded between $17.46 and $23.86 over the past 52 weeks — context for the timing of the transactions below. Insider transactions as disclosed to regulators, with role, size and date — the clearest read on how the people running the company are positioned. Included with FRC Premium.
Senate Trading
PremiumU.S. Senator disclosures filed under the STOCK Act.
U.S. Senate disclosures naming Capital Southwest Corporation. Capital Southwest Corporation is a $1.50B Financial Services company. Senators' reported transactions in this security, alongside the fundamentals — a signal most research platforms leave out entirely. Included with FRC Premium.
House Trading
PremiumU.S. Representative disclosures filed under the STOCK Act.
U.S. House of Representatives disclosures naming Capital Southwest Corporation. Representatives' reported transactions in this security, shown next to the company's fundamentals. Included with FRC Premium.
News
Latest headlines and market coverage.
Latest headlines and company announcements for Capital Southwest Corporation. Coverage tracks Capital Southwest Corporation within Asset Management (Financial Services). Press releases and market coverage, newest first.