Vivek Vishwakarma YCharts Buy The Dip On This Cash Cow Seeking Alpha Current Investment Portfolio of $1.5 B continues to be heavily weighted towards first lien investments and diverse across industries CSWC continues to benefit from high interest rates, given that 97% of its income-bearing investments are held at a floating rate. It's also seen meaningful NAV per share growth of $0.40 over the prior year period to $16.77 at the end of fiscal Q4 2024 (ended March 31st). As shown below, CSWC's NAV per share h ...

Core Viewpoint - Business Development Companies (BDCs) like Capital Southwest (CSWC) have performed well in a high interest rate environment, with CSWC showing a total return of approximately 125% over the last five years and a distribution yield of 8.7% [1][12]. Financial Performance - CSWC's net investment income (NII) per share has increased as interest rates rose, with NII per share reaching $0.38 in Q1 2021 and growing consistently thereafter [5]. - The most recent earnings call indicated a non-accrual rate of 2.3% of fair value, slightly up from 2.2%, suggesting some pressure from high interest rates on portfolio companies [6]. - CSWC has committed $154 million to new credit investments with a weighted average yield of 13.3% over the last quarter [6]. Investment Strategy - CSWC focuses on lower middle market companies, primarily investing in first lien debt, which constitutes 97% of its portfolio, providing stability and lower risk of capital loss [13][14]. - The portfolio is heavily weighted towards floating rate investments (97.4%), allowing CSWC to benefit from rising interest rates [14]. Market Position - CSWC currently trades at a premium to net asset value (NAV) of about 56.7%, significantly higher than the average premium of 35% over the past three years [7]. - The company has consistently issued supplemental dividends and increased base distributions, with a compound annual growth rate (CAGR) of 9.08% over the last five years [24]. Economic Outlook - The Federal Reserve's interest rate decisions, particularly in the context of the upcoming US presidential elections, may lead to potential rate cuts, which could impact CSWC's pricing and investment income [9][20]. - Future interest rate cuts are expected to lower NII, presenting a more attractive entry point for new investors [21][30].

DALLAS, July 17, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation ("Capital Southwest") (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce its preliminary operating results for the first quarter of its 2025 fiscal year (quarter ended June 30, 2024) and its first quarter 2025 earnings release and conference call schedule. Capital Southwest's prelimi ...

Overview Figure 1: Seeking Alpha Portfolio of Assets Its equity investments over total assets are 24.9%, one of the highest in the industry. It invests in diverse industries, from industrials to consumer staples and technolog It also invests in several equity tools, like common and preferred equity and warrants, reinforcing the company's risky nature. It gets a yield on its debt investments of 13.5%, one of the largest in the industry, slightly lower than Trinity Capital, with 14.2%. As shown in Figure 2, I ...

Golub Capital BDC (GBDC) Golub Capital BDC (NASDAQ:GBDC) is a company that provides funding to medium-sized businesses through set-rate loans. BDC delivered exceptional results in its second quarter, with adjusted net investment income per share reaching a record high of 51 cents, up 21% from last year. This equates to an impressive annual return of 13.5% for shareholders. I'm particularly enthusiastic about GBDC's upcoming merger with Golub Capital BDC 3 and the fee reductions that will establish GBDC's fe ...

MarsBars Total return and capital appreciation are common measurements of investment performance. While each of those are worthwhile metrics to look at, an oft-overlooked measure is the payback period on an investment. Payback period usually takes a back seat to total returns, but it can be a highly useful tool for investors who prize getting their investment capital back, so that proceeds can be deployed to generate more income, all while the original investment continues to churn out income, resulting in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 814-00061 CAPITAL SOUTHWEST CORPORATION (Exact na ...

Capital Southwest (CSWC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earn ...

Capital Southwest (NASDAQ:CSWC) Q4 2024 Earnings Conference Call May 15, 2024 11:00 AM ET Corporate Participants Chris Rehberger - Vice President, Finance Bowen Diehl - President and Chief Executive Officer Michael Sarner - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Vilas Abraham - UBS Bryce Rowe - B. Riley Erik Zwick - Hovde Group Sean-Paul Adams - Raymond James Operator Thank you for joining today's Capital Southwest Fourth Quarter and Fiscal Year 2024 Earnings Call. ...

| --- | --- | |------------------------------------------------------------------------------------------------|-------| | | | | | | | Q4 2024 Earnings Presentation | | | May 15, 2024 | | | 8333 Douglas Avenue, Suite 1100 \| Dallas, Texas 75225 \| 214.238.5700 \| capitalsouthwest.com | | Important Notices • These materials and the presentations of which they are a part, and the summaries contained herein, do not purport to be complete and no obligation to update or otherwise revise such information is being ...