CSWC

Based on Capital Southwest Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does Capital Southwest Corporation do?

Capital Southwest is a business development company that provides debt and equity financing to middle market businesses across the United States. It focuses on sectors like industrial manufacturing, healthcare, business services, and tech-enabled companies, primarily through senior secured loans, unitranche debt, and subordinated financing structures.

Does CSWC pay dividends?

Yes, Capital Southwest pays a regular dividend. As a BDC, it is required by regulation to distribute most of its taxable income to shareholders. The company has historically paid both a base dividend and supplemental distributions, making it a common holding for income-oriented investors.

When does CSWC report earnings?

Capital Southwest reports earnings quarterly, in line with standard US-listed company requirements. For exact dates and the most recent results, check the investor relations section of the company's official website.

Is CSWC a good stock to buy?

UQS Score rates CSWC as Good overall. The Quality, Growth, and Valuation pillars are favorable, but the Weak Moat and Risk ratings highlight real considerations around competitive positioning and credit exposure. Whether it fits your portfolio depends on your income needs and risk tolerance. View the full pillar breakdown on UQS Score Pro.

Is CSWC overvalued?

The UQS Valuation pillar for CSWC is rated Attractive, suggesting the stock is reasonably priced relative to its fundamentals when compared to sector peers. That said, valuation in BDCs should always be considered alongside credit quality and portfolio risk. The full metrics are available to Pro members.

How does CSWC compare to its competitors?

Compared to peers like Prospect Capital and General American Investors, CSWC is more narrowly focused on middle market credit — particularly senior secured and unitranche lending. This focus can mean more predictable income but also concentrated exposure to private credit risk. See the competitor comparison section above for more context.

What is CSWC's market cap bracket?

Capital Southwest is classified as a small-cap company. This places it among the smaller publicly traded BDCs, which can mean less liquidity and greater price sensitivity compared to large-cap financial firms, but also potential for growth as the portfolio scales.

Who founded Capital Southwest Corporation?

Capital Southwest was founded in 1980. Detailed founding history and leadership background are publicly available through the company's official investor relations materials and SEC filings.

Is CSWC a long-term quality investment?

From a quality indicator standpoint, CSWC's Good UQS Score reflects a company with consistent income generation and a growing portfolio. However, the Weak Moat and Risk ratings are important long-term considerations — BDCs depend heavily on credit market conditions and access to capital. Pro members can view the full multi-pillar quality breakdown.

What is the main competitive advantage of Capital Southwest?

CSWC's focus on the lower middle market — a segment often underserved by large banks — gives it access to deal flow with potentially higher yields. Its combination of debt and equity co-investment structures allows it to participate in upside while generating current income. However, the UQS Moat pillar is rated Weak, reflecting the competitive nature of private credit.

What sector does CSWC belong to?

Capital Southwest belongs to the Financial Services sector, specifically operating as a Business Development Company (BDC). BDCs are regulated investment vehicles that provide financing to private middle market businesses and are required to distribute most of their income as dividends.

Is CSWC a growth stock or value stock?

CSWC sits between the two categories. The Good Growth pillar suggests meaningful portfolio and income expansion, while the Attractive Valuation pillar indicates the stock is not priced at a premium. Income investors may find it appealing for its dividend, while growth-oriented investors can track portfolio origination trends over time.

Capital Southwest Corporation shows solid profitability with healthy returns on capital and reasonable margins.

Capital Southwest Corporation demonstrates healthy growth trends across revenue and earnings.

Capital Southwest Corporation has some risk factors including moderate leverage or solvency concerns.

Capital Southwest Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.

Capital Southwest Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CSWC.

The UQS (Unified Quality Score) for Capital Southwest Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Capital Southwest Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Capital Southwest Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.