Capital Southwest Corporation (CSWC)

Over the past six months, Capital Southwest's stock price has fluctuated, with a general decline observed over the past year. Key events impacting the stock include dividend declarations, with consistent monthly and supplemental quarterly dividends. Earnings reports for Q3 CY2025 showed better-than-expected revenue but a GAAP profit below estimates, while Q2 FY2026 reported pre-tax net investment income of $0.61 per share. Concerns have been raised regarding the dividend payout ratio and a rise in non-accrual loans. Shareholders have experienced dilution due to an increase in total shares outstanding. Capital Southwest raised capital through debt offerings, including $350 million in 5.95% notes due 2030 and $200 million worth of 5.125% Convertible Notes due 2029.

The provided search results do not contain specific information about the demand seasonality for Capital Southwest Corp's products and services. Demand for its services is likely influenced by broader economic conditions, interest rate environments, and the health of the middle-market segment. The company's revenue growth suggests healthy demand for its offerings.

Capital Southwest Corporation (CSWC) is an internally managed Business Development Company (BDC) focused on providing financing solutions to middle-market U.S. companies. The company aims to generate risk-adjusted returns through debt investments and capital appreciation. CSWC primarily operates in the Financial Services sector, specifically Asset Management, targeting businesses with EBITDA between $3 million and $25 million. It offers debt and equity financing, including first lien senior secured debt, second lien loans, subordinated debt, unitranche debt, and non-control equity co-investments, across diverse industries, while avoiding investments in startups, publicly traded companies, and certain other sectors.

Capital Southwest Corp primarily invests in middle-market companies located in the United States.

Capital Southwest generally maintains a positive reputation within the income investor community, known for its credit risk management and supplemental dividends, with a "Buy" consensus rating from analysts. However, challenges have arisen due to increased non-accrual loans, a high dividend payout ratio, and earnings misses. To restore investor confidence, it has been suggested that Capital Southwest needs to lower its non-accrual ratio, avoid dilutive convertibles, and improve its dividend payout ratio to 80-85%.

Capital Southwest Corporation's ownership structure shows that institutional investors hold the largest stake, managing nearly a third of the company. As of November 18, 2025, institutional ownership accounts for 28.9% of the company, while individual insiders hold 2.95%, and the general public holds 68.2%. Major institutional owners include Van Eck Associates Corp, Sanders Morris Harris Llc, and BIZD - VanEck Vectors BDC Income ETF, among others.