The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source of revenue comprises interest income and dividend income from investments made as well as management fees.
We grade stocks based on past performance, their future growth potential, intrinsic value, dividend history, and overall financial health.
The chart below shows how we grade Capital Southwest (CSWC) across the board compared to its closest peers.
Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
91.18
Growth measures a stock's combined historical expansion in earnings and revenue across multiple time periods, with emphasis on both long-term trends and recent performance.
4.31
Quality is a composite ranking that evaluates a company's operational efficiency and financial health by analyzing historical profitability metrics and fundamental strength indicators on a percentile basis relative to peers.
See how Capital Southwest compares to its peers in these key performance metrics from Benzinga Rankings.
Earnings History (3 years)
It is important to look at a companies earnings history to see not only if they are profitable, but if their earnings are growing.The two main factors that we consider when analyzing past performance is overall return and volatility
Using these two metrics, we can determine if this stock gave its investors enough return for the risk that they took on by owning it. This is measured by the sharpe ratio, which has been used as a primary measure of risk/reward trade-off for almost 60 years.
This ratio can be interpreted as the amount of return an investor has received for the amount of risk that they took on by owning the stock over that timeframe.
Capital Southwest (CSWC) sharpe ratio over the past 5 years is -0.5651 which is considered to be above average compared to the peer average of -0.8124