Corporate Webpages Capital Southwest Corporation
Back in the days when Volcker was Federal Reserve Chairman, the
decision was made to let interest rates float. It was possible
to get 10-year CD's paying 13% interest. With the pandemic,
another situation has developed so that even with low interest
rates around 1%, it seemed recently possible to earn 13% on your
money once again, although not in quite as safe a way. It was
described by Cramer as "accidental high dividend payers." As
stock prices collapsed, regular dividends as a percentage of
that price had their percentages increase.
Capital Southwest Corporation is a "BDC" (business development
company) which invests in medium-sized or small businesses and
according to stock charts, it would seem all BDC's stock prices correlate
well with the stock averages.
This corporation has no glitzy annual reports or CEO Letters to
Shareholders, only conference calls, but reminds us of an
advertisement for Ken Fisher Investments, i.e. "We are
structured without commissions so that we do well when you do."
That's not quite the same, but management here seems reasonably
compensated indicating shareholder concern. Also insider buying
has been very positive for this company of late, as apparently
managers realized the pandemic and stock market collapse would
not last forever and the value of their holdings would return or
increase. This corporation is one of the worst performers in
the BDC group of many competitors, but that enhances the
dividend percentage significantly. News on the company is all
over the map on dividends, and the current situation of paying
out more in dividends than is being taken in revenues cannot be
sustained. An eventual dividend cut is anticipated, but
even with that, it is for the probable dividend that one would buy
the stock.
Some items of financial analysis data sheets have been hard to
obtain, but even so, this corporation has a strong Zenith Index
and we think the fundamentals do not look bad. The stock is
currently trading below book value, although there appears a
rush on to drive the share price back up with the rest of the
stock market as the dividend percentage shrinks each day.
Researches, including Standard & Poor's are very down on this stock.
Analysts are more positive. Insstitutions are dumping the stock.
There is a heavy short position in the stock which contributes
to an avalanche of buyers when the chart reverses.
04-30-2020: Capital Southwest Corporation (CSWC): Accidental High Dividend Payer
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
Capital Southwest Corporation (CSWC) Exchange: Nasdaq
Lincoln Center Tower 1
Suite 1300 5400 Lyndon B Johnson Sector: Financial Services
Dallas, TX 75240 Industry: Asset Management
Last Trade: 12.22 52-Week Range: 22.90 - 7.39
Employees: 23 Avg.Volume: 225,352 Shares
EPS: 0.74 Dividend Amount: $ 1.64 Yield: 13.42%
Ex-Dividend Date: Jun 12, 2020 Payout Ratio: 207.03
Key Statistics:
Trailing P/E: 17.71 Forward P/E (est.): 6.41
Target Price: 16.07
Qrtly Stock Price Growth (yoy): -39.03% Beta: 0.25
Qrtly S&P Index Growth (yoy): 15.20% Short Ratio: 0.46%
Qrtly Revenue Growth (yoy): 52.00% Shares Out: 18630000
Qrtly Earnings Growth (yoy): 0.00%
Book Value: 16.74 Debt/Equity: 87.73%
Price/Book Value: 0.66 Operating Profit Margin: 73.62%
Price/Sales: 5.41 Profit Margin: 21.38%
Market Cap: 244,768,000 Return on Equity: 4.16%
Enterprise Value: 0 Return on Assets: 5.02%
Operating Cash Flow: -94,706
Free Cash Flow: -94,706
Annual Income Statement: (All numbers in thousands)
Period Ending 3/31/2019 3/31/2018 3/31/2017
Total Revenue 48,873 53,192 38,394
Cost of Revenue 0 0 0
Gross Profit 0 0 0
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 4,800 4,421 4,435
Total Operating Expenses 14,945 13,823 12,818
Operating Income or Loss 0 0 0
Income from Continuing Operations:
Total Other Income/Expenses Net 0 0 0
Interest Expense 12,178 4,875 989
Income Before Taxes 33,928 39,369 25,576
Income Tax Expense 870 62 2,102
Net Income from Continuing Op.s 33,058 39,307 23,474
Non-recurring Events:
Extraordinary Items 0 0 0
Net Income 33,058 39,307 23,474
Net Income Avail to Common Shares 33,058 39,307 23,474
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 3/31/2019 3/31/2018 3/31/2017
Net Income 33,058 39,307 23,474
Operating Activities:
Depreciation 1,393 927 459
Changes in Accounts Recv'bls 0 0 0
Changes in Liabilities -94,706 -63,863 -89,559
Changes in Inventories 0 0 0
Changes in other Oper'g Acts 288 993 -7,755
Total Cash Flow f Operations -94,706 -63,863 -89,559
Investing Activities:
Capital Exenditures 0 0 0
Investments 0 0 0
Other Cash Flows fr Investing 0 0 0
Total Cash Flows from Investing 0 0 0
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock 0 0 0
Other Cash Flows fr Financing 0 0 0
Total Cash Flows from Financing 0 0 0
Change in Cash & Cash Equiv. 2,017 -14,479 -73,583
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 3/31/2019 3/31/2018 3/31/2017
Current Assets:
Cash & Cash Equivalents 0 0 0
Short Term Investments 0 0 0
Net Receivables 0 0 0
Inventory 0 0 0
Other Current Assets 0 0 0
Total Current Assets 0 0 0
Long-Term Investments 0 0 0
Property, Plant & Equipt 0 0 0
Goodwill 0 0 0
Intangible Assets 0 0 0
Other Assets 0 0 0
Total Assets 551,843 417,490 325,752
Current Liabilities:
Accounts Payable 0 0 0
Current Portion LT Debt 0 0 0
Other Current Liabilities 0 0 0
Total Current Liabilities 0 0 0
Long Term Debt 0 0 0
Other Liabilities 0 0 0
Total Liabilities 225,880 109,202 40,680
Stockholder Equity:
Common Stock 4,961 4,625 4,588
Retained Earnings 63,734 6,147 -1,457
Capital Surplus 0 0 0
Total Stockholder Equity 325,963 308,288 285,072
Capital Southwest Corporation (CSWC) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 1.5810 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.0000 Forward P/E Ratio < 28? 3.0000
Price/Sales Ratio < 2.3? 0.4253 Inventory/Sales < 5%? 1.0000
Sales < $1 Billion? 3.0000 Operating Margin < 7.5%? 0.1019
Balance Sheet Tests:
Debt/Equity < 0.40? 0.4559 Long-Term Debt Service: 3.0000
LTD Being Reduced? 0.0000 Short-Term Debt Service: 0.0000
Current Ratio > 2? 1.0000 Working Capital >= 1.5? 1.0000
Leverage Ratio < 20%? 3.0000 Debt/Assets < 1? 3.0000
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 1.0000
Share Equity Increase: 2.1388 Market Cap.< 1.5 Billion? 3.0000
Intangibles < 3% Assets? 3.0000
Income Tests:
Profit Margin < 7.5%? 2.8506 EPS Annual Growth > 10%? 0.1189
Dividend Yield > 2.0%? 0.1490 EPS 3-yr Growth > 15? 0.1065
Enterprise Value/Revenue 3.0000 EPS Growth Consistent? 0.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 1.0000
EPS Qrtly Growth > 10%? 0.0000 Gross Pft/Cur. LTD > 1? 3.0000
Borrowing Int. Rate < 6%? 3.0000
Stock Performance Tests:
Volatility > 25%? 2.7092 % Held by Insiders < 5%? 0.7267
Beta > 1.25? 0.2000 % Held by Institut. < 50? 1.2136
50 Da MA > 200 Da MA? -1.8069 % Held by Institut. > 30? 1.3733
52-Wk Change vs. S&P 500: -0.7506 Short Ratio > 5? 0.0920
Price/Book Value < 3? 3.0000 Short % of Float > 20? 0.0470
Return on Assets > 17%? 0.2953 C Average Volume > 100,000? 2.2535
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.0000 Positive Free Cash Flow? -1.0000
Positive Oper. Cash Flow? -1.0000 Price to C.F.Ratio < 14?: 3.0000
Cash Flow / Assets > 10%? 1.7162
CSWC Capital Southwest Corporation Overall Zenith Index: 1.2859
Financial Statements |
Balance Sheet:
Cash Flow Statement:
Average to Current P/E Ratios |
(CSWC) Capital Southwest Corp.
2015 2016 2017 2018 2019
Annual Earnings: 3.43 -0.35 1.48 2.44 1.98
Average Price During Year: 16.81 14.16 16.56 17.89 21.40
P/E Ratio: 4.90 40.47 11.19 7.33 10.81
Average 5-Year P/E Ratio = 14.94
Current Price = 13.14
Previous 5 Quarter Earnings: 0.25 0.60 0.38 0.15 -0.38
Current Annualized (Last Four Quarters) Earnings = 0.15
________
Average PE / Current PE = 0.17
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for CAPITAL SOUTHWEST CORPORATION:
Symbol? CSWC
Total Months Available: 25
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
22.90 20.57 22.56 20.60 21.71 7.39
RANGE = 22.90 TO 7.39 Close = 13.14
CHANNEL = 21.71 TO 20.60 Degree = 1
Volatility = 8.45% Index = 0
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
0 out of 7 favorable, (negative opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor an upmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | + 1 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings | + 1 |
| Cash Flow | + 1 |
| Average to Current P/E | - 1 |
| Ratios | + 1 |
| Intrinsic Value DCF | 0 |
| Fair Value Estimator | + 1 |
| Projected Earnings | - 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | + 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| MACD Histogram Divergence | + 1 |
| Val Idea | - 1 |
| Stock Consultant | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | - 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 8 |
Place 2,210 shares of Capital Southwest Corporation (CSWC) on the Active List.
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