📊 CSWC Key Takeaways
Investment Thesis
Capital Southwest Corporation exhibits severe operational distress with massively negative free cash flow (-134.6M) and an unsustainably high net margin (789.3%) driven by non-operating gains rather than core business profitability. The company's high leverage (1.08x debt-to-equity) combined with minimal operating cash generation and declining cash position presents significant financial stress, despite modest revenue growth.
CSWC Strengths
- Revenue growth of 16.1% YoY demonstrates top-line expansion
- Moderate gross profit generation provides some operational foundation
- Substantial asset base ($2.1B) provides collateral and operational capacity
CSWC Risks
- Severely negative operating cash flow (-134.4M) indicates inability to generate cash from core operations
- Artificially inflated net margin (789.3%) suggests income driven by investment gains rather than sustainable operations
- High financial leverage (1.08x debt-to-equity) with deteriorating liquidity position threatens financial stability
- Negative free cash flow of -134.6M consuming capital at unsustainable rate
- Minimal cash reserves (42.6M) relative to debt obligations and cash burn rate
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Net income composition (proportion from core operations vs. investments)
- Debt levels and refinancing requirements
- Cash position depletion rate and covenant compliance
- Gross profit expansion relative to operating expense control
CSWC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CSWC Profitability Ratios
CSWC vs Default Sector
How CAPITAL SOUTHWEST CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CSWC Balance Sheet & Liquidity
CSWC 5-Year Financial Trend
5-Year Trend Summary: CAPITAL SOUTHWEST CORP's revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.87 reflects profitable operations.
CSWC Growth Metrics (YoY)
CSWC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2012 | $5.6M | N/A | N/A |
| Q2 2012 | $1.3M | N/A | N/A |
| Q1 2012 | $1.2M | N/A | N/A |
| Q3 2011 | $2.4M | N/A | N/A |
| Q2 2011 | $1.2M | N/A | N/A |
| Q1 2011 | $1.2M | N/A | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CSWC Capital Allocation
CSWC SEC Filings
Access official SEC EDGAR filings for CAPITAL SOUTHWEST CORP (CIK: 0000017313)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSWC
What is the AI rating for CSWC?
CAPITAL SOUTHWEST CORP (CSWC) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSWC's key strengths?
Revenue growth of 16.1% YoY demonstrates top-line expansion. Moderate gross profit generation provides some operational foundation.
What are the risks of investing in CSWC?
Severely negative operating cash flow (-134.4M) indicates inability to generate cash from core operations. Artificially inflated net margin (789.3%) suggests income driven by investment gains rather than sustainable operations.
What is CSWC's revenue and growth?
CAPITAL SOUTHWEST CORP reported revenue of $10.8M.
Does CSWC pay dividends?
CAPITAL SOUTHWEST CORP pays dividends, with $108.7M distributed to shareholders in the trailing twelve months.
Where can I find CSWC SEC filings?
Official SEC filings for CAPITAL SOUTHWEST CORP (CIK: 0000017313) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSWC's EPS?
CAPITAL SOUTHWEST CORP has a diluted EPS of $1.46.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.