Capital Southwest Stock Performance and Valuation

Capital Southwest Stock has a strong track record of delivering returns to its shareholders. With a history of making strategic investments in middle market companies, the stock has consistently outperformed the market.

The company's focus on generating consistent dividend income has made it a favorite among income investors. In fact, the stock has a dividend yield of around 8%, making it an attractive option for those seeking regular income.

Over the past decade, Capital Southwest Stock has delivered an average annual return of around 15%, significantly outpacing the broader market. This is a testament to the company's ability to identify and invest in high-growth opportunities.

Despite its strong performance, Capital Southwest Stock is still considered undervalued by many analysts. With a price-to-book ratio of around 1.2, the stock is trading at a significant discount to its historical average.

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Capital Southwest stock is a great opportunity for investors. Earnings are forecast to grow 37.15% per year.

The growth potential of this stock is impressive, making it a solid choice for those looking to invest in the market.

Capital Southwest's financial performance has been on the rise. The company's revenue has increased significantly, with a growth rate of 15% in the past year.

One of the key drivers of this growth is the company's expansion into new markets. Capital Southwest has successfully entered new regions, which has led to an increase in sales and revenue.

The company's net income has also seen a substantial increase, rising by 20% in the past year. This is a testament to the company's effective cost management and operational efficiency.

Capital Southwest's financial performance is also reflected in its stock price, which has appreciated by 25% in the past year. This growth in stock price is a direct result of the company's improved financials.

The company's strong financial performance has also enabled it to pay a dividend to its shareholders. This is a positive sign for investors, indicating that the company is committed to rewarding its shareholders for their investment.

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Capital Southwest Corporation is a business development company that provides capital to lower middle market companies. It was founded in 1961.

The company has a long history of investing in various industries, including manufacturing, services, and consumer products.

Capital Southwest Corporation is a business development company that specializes in credit and private equity investments in middle market companies. They focus on specific types of investments, which is a deliberate strategy to maximize returns.

The company avoids investing in startups, publicly traded companies, real estate developments, project finance opportunities, oil and gas exploration businesses, troubled companies, turnarounds, and companies with departing senior management. This targeted approach allows them to concentrate on areas where they can add the most value.

In the lower middle market, Capital Southwest Corporation typically invests in growth financing, bolt-on acquisitions, new platform acquisitions, refinancing, dividend recapitalizations, sponsor-led buyouts, and management buyouts situations.

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The company was founded in 2010 by a team of experienced entrepreneurs. They have since grown to become a leading player in their industry.

In 2015, the company reached a significant milestone, with revenues exceeding $10 million. This growth was driven by a strong focus on innovation and customer satisfaction.

The company's headquarters is located in San Francisco, California, a hub for tech innovation and entrepreneurship. This strategic location has helped the company attract top talent and stay ahead of the curve.

As of 2020, the company has a global presence, with operations in over 20 countries. This expansion has enabled the company to tap into new markets and reach a wider customer base.

The company's product line includes a range of innovative solutions, with a focus on artificial intelligence and data analytics. These products have helped the company establish a strong reputation for quality and reliability.

Capital Southwest stock has seen some significant recent events. One notable event is the company's acquisition of a majority stake in an aerospace company, which was announced in 2022.

This acquisition was a strategic move to expand Capital Southwest's portfolio in the aerospace industry. The aerospace company brings in new revenue streams and opportunities for growth.

The acquisition was completed at a valuation of $200 million, marking a significant milestone for the company. This investment has already started to pay off, with the company reporting a 25% increase in revenue in the following quarter.

Capital Southwest's stock price has reacted positively to this news, with the company's shares increasing by 15% in the weeks following the announcement.

CSWC's price volatility is relatively stable compared to the US market. CSWC's average weekly movement is 2.3%, which is lower than the capital markets industry average movement of 3.5% and the market average movement of 6.0%.

In the past 3 months, CSWC's share price has not had significant price volatility, making it a stable investment option. Over the past year, CSWC's weekly volatility has remained stable at 2%.

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Here's a comparison of CSWC's volatility to the 10% most and least volatile stocks in the US market:

CSWC is expected to have a relatively low potential return on next major news, with a potential return of 0.04.

CSWC's price volatility is a topic worth exploring. According to the data, CSWC's average weekly movement is 2.3%, which is lower than the capital markets industry average movement of 3.5%.

The US market average movement is significantly higher, at 6.0%. This suggests that CSWC's price is relatively stable compared to the broader market.

In fact, CSWC has not had significant price volatility in the past 3 months, making it a stable share price choice.

To put this into perspective, the 10% most volatile stocks in the US market have an average weekly movement of 18.0%, while the 10% least volatile stocks have an average weekly movement of 3.1%.

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The price history and performance of Capital Southwest is a story worth telling. The current share price is $23.26, which is a significant drop from its 52-week high of $27.23.

Over the past year, the stock has experienced a -2.15% change, which is a relatively modest decline compared to its 52-week low of $20.68. The beta of the stock is 1.3, indicating a moderate level of volatility.

In the past five years, the stock has seen a remarkable 27.59% change, a testament to its growth potential. However, this growth has been inconsistent, with a -4.98% change over the past three years.

Here's a quick snapshot of the stock's performance over different time periods:

The stock has also seen a significant change since its IPO, with a 490.73% increase. This is a notable achievement, but it's essential to consider the stock's current performance and volatility before making any investment decisions.

Fair Value is a crucial aspect to consider when evaluating a stock's potential. According to the consensus of 7 analysts, Capital Southwest has 3.09% upside to fair value.

This means that if you're considering investing in Capital Southwest, you might want to keep an eye on its price, as it could potentially increase by 3.09% to reach its fair value. The analysts' consensus is that the fair value is $24.00 per share.

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A share buyback program can have a significant impact on a company's share price. It's a strategy where the company buys back its own shares from the market, which can reduce the number of outstanding shares and potentially boost earnings per share.

Capital Southwest has a share repurchase program in place, which can result in a higher earnings per share. By buying back shares, the company can increase its earnings per share, all else being equal.

This can be a material factor that affects share price, so it's worth considering when analyzing a company's financials.

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Capital Southwest stock has a unique investment strategy that sets it apart from other private debt funds. They focus on providing capital to lower middle market companies, typically with $20 million to $100 million in revenue.

One key aspect of their strategy is their focus on supporting entrepreneurs and business owners who are looking to expand their companies. This is reflected in their investment approach, which prioritizes flexibility and collaboration.

Capital Southwest's investment team has a strong track record of success, with over 80% of their investments resulting in successful exits. This suggests that their approach is effective in helping companies achieve their growth goals.

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Let's take a closer look at how Capital Southwest (CSWC) is performing compared to the S&P 500. Over the past 5 trading days, CSWC has overperformed the S&P 500 by 2.69%, indicating its relative strength is strong at this time.

This suggests that CSWC is currently outpacing the overall market, which is a positive sign for investors.

A key takeaway from this is that CSWC is showing resilience in a potentially volatile market.

Here's a brief comparison of CSWC's performance relative to the S&P 500 over the past 5 trading days:

Capital Southwest has received a consensus rating of Hold, based on the opinions of 2 Buy ratings, 5 Hold ratings, and 0 Sell ratings from analysts.

The consensus rating is a Hold, which suggests that analysts are neither overly optimistic nor pessimistic about the company's future performance.

According to analysts' consensus, the estimated upside potential from the current price of $23.28 is 3.09%, based on a price target of $24.00.

Here's a summary of the analysts' consensus:

Capital Southwest stock has had a remarkable growth journey, with a 5-year change of 27.59%. This impressive increase is a testament to the company's ability to adapt and thrive in a rapidly changing market.

The current share price of $23.26 is a significant drop from the 52-week high of $27.23, but still a decent gain from the 52-week low of $20.68.

Here's a breakdown of the stock's performance over the past year, in a concise table:

The stock's beta of 1.3 indicates that it's moderately volatile, but still a relatively safe bet for investors looking to diversify their portfolios.

Capital Southwest's revenue growth has been on a downward trend, with the company experiencing a year-over-year decline for one quarter in a row.

In the most recent quarter, Capital Southwest reported revenues of $26.6M, a significant drop from previous periods.

This decline in revenue may be a cause for concern for investors and stakeholders, as it can impact the company's overall financial health and growth prospects.

We'll need to keep a close eye on Capital Southwest's financials to see if this trend continues or reverses in future quarters.

Capital Southwest's earnings have been falling on a year-over-year basis for 4 quarters in a row. In the most recent quarter, Capital Southwest reported earnings per share of $0.34.

Their earnings per share have decreased significantly, from $1.37 in 2022 to $0.34 in 2024. This is a concerning trend that investors should take note of.

Here's a comparison of their earnings per share over the past few years:

As you can see, their earnings per share have been inconsistent and have not shown a clear upward trend. This is a red flag for investors who are looking for a company with stable and growing earnings.

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