Explain this page
Arphra AIPlain-English read on Capital Southwest Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Quality composite
BSolid
A snapshot of the latest fiscal year’s margins, returns on capital, balance-sheet strength and efficiency, computed from the income statement, balance sheet and cash-flow rows. Source income / balance / cash_flow.
Profitability
Gross margin94.3%
Operating margin76.9%
Net margin45.9%
ROE11.2%
ROA5.2%
ROIC8.4%
Liquidity & leverage
Current ratio—
Quick ratio—
Debt / equity1.12×
Net debt / EBITDA5.68×
Interest coverage3×
Efficiency & per-share
Asset turnover0.11×
Inventory days0
Days sales out.52
FCF / share$-2.94
Book value / share$15.36
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Headline | |||||||
| Market cap | — | — | $1.01B | $1.06B | $1.25B | — | — |
| Enterprise value | — | — | $1.74B | $1.97B | $2.35B | — | — |
| Multiples | |||||||
| P / E | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — |
| EV / Sales | — | — | 11.47 | 12.04 | 9.56 | — | — |
| EV / FCF | — | — | -9.25 | -9.01 | -12.16 | — | — |
| Yields | |||||||
| Earnings yield | — | — | +8.29% | +6.66% | +9.04% | — | — |
| Free cash flow yield | — | — | -18.74% | -20.67% | -15.47% | — | — |
| Dividend yield | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Margins | |||||||
| Gross margin | +80.64% | +68.03% | +71.68% | +66.45% | +94.33% | +75.52% | +77.67% |
| Operating margin | +45.51% | +44.36% | +55.60% | +48.48% | +76.87% | +60.23% | +60.41% |
| EBITDA margin | +47.68% | +47.40% | +58.43% | +52.06% | +78.83% | +63.65% | +63.42% |
| EBIT margin | +45.51% | +44.36% | +55.60% | +48.48% | +76.00% | +59.74% | +60.93% |
| Pre-tax margin | +45.51% | +44.36% | +55.60% | +48.48% | +48.91% | +50.64% | +50.64% |
| Net margin | +41.60% | +36.64% | +54.81% | +43.07% | +45.95% | +48.56% | +47.15% |
| Cost structure | |||||||
| Cost of revenue / sales | +19.36% | +31.97% | +28.32% | +33.55% | +5.67% | +23.05% | +22.06% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +6.38% | +8.65% | +5.88% | +6.67% | +9.73% | +7.62% | +7.36% |
| Effective tax rate | +8.59% | +17.40% | +1.43% | +11.16% | +6.06% | +6.10% | +6.18% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| Return on equity (ROE) | +10.17% | +5.61% | +11.04% | +7.98% | +11.18% | +10.26% | +9.69% |
| Return on assets (ROA) | +4.40% | +2.63% | +5.36% | +3.75% | +5.19% | +4.77% | +4.53% |
| Return on capital (ROC) | +4.93% | +3.26% | +5.54% | +4.32% | +8.83% | +6.00% | +6.01% |
| Return on invested capital (ROIC) | +4.51% | +2.69% | +5.46% | +3.83% | +5.27% | +4.84% | +4.69% |
| Asset turnover | +10.57% | +7.18% | +9.77% | +8.70% | +11.29% | +9.81% | +9.61% |
| DuPont · ROE decomposition | |||||||
| Net margin | +41.60% | +36.64% | +54.81% | +43.07% | +45.95% | +48.56% | +47.15% |
| Asset turnover (× revenue / assets) | +10.57% | +7.18% | +9.77% | +8.70% | +11.29% | +9.81% | +9.61% |
| Equity multiplier (× assets / equity) | +231.42% | +213.02% | +206.01% | +213.08% | +215.38% | +215.33% | +213.79% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Turnover | |||||||
| Asset turnover | 0.11 | 0.07 | 0.10 | 0.09 | 0.11 | 0.10 | 0.10 |
| Fixed-asset turnover | — | — | — | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — |
| Receivables turnover | 7.18 | 4.73 | 5.04 | 5.07 | 6.99 | — | — |
| Payables turnover | — | — | — | — | — | — | — |
| Days outstanding | |||||||
| Days sales outstanding (DSO) | 50.87 | 77.09 | 72.46 | 72.02 | 52.24 | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | — | — | — | — | — | — | — |
| Cash conversion cycle | 50.87 | 77.09 | 72.46 | 72.02 | 52.24 | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Operating CF / Net income | -4.27 | -6.86 | -2.26 | -3.08 | -1.71 | -2.24 | -2.31 |
| FCF / Net income | -4.31 | -6.87 | -2.26 | -3.10 | -1.71 | -2.35 | -2.37 |
| FCF margin | -179.42% | -251.73% | -123.90% | -133.64% | -78.68% | -113.92% | -111.79% |
| OCF margin | -177.48% | -251.42% | -123.89% | -132.63% | -78.68% | -108.99% | -109.04% |
| CapEx / Revenue | +1.94% | +0.31% | +0.01% | +1.02% | +0.12% | +0.38% | +0.38% |
| CapEx / D&A | 0.34 | 0.07 | 0.00 | 0.28 | — | — | — |
| Stock-based comp / Revenue | +3.48% | +4.10% | 0.00% | 0.00% | 0.00% | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| EPS · diluted | 1.87 | 1.10 | 2.05 | 1.47 | 1.90 | 2.29 | 2.31 |
| EPS · basic | 1.87 | 1.10 | 2.05 | 1.47 | 1.98 | 2.32 | 2.37 |
| Book value / share | 18.43 | 19.67 | 18.55 | 17.26 | 15.36 | 18.41 | 20.81 |
| Tangible BV / share | 18.43 | 19.67 | 18.55 | 17.26 | 15.36 | 18.41 | 20.81 |
| Sales / share | 4.51 | 3.01 | 3.74 | 3.20 | 3.74 | 3.89 | 4.28 |
| Operating CF / share | -8.00 | -7.57 | -4.63 | -4.24 | -2.94 | -4.24 | -4.66 |
| Free cash flow / share | -8.09 | -7.58 | -4.63 | -4.28 | -2.94 | -4.43 | -4.78 |
| Dividends / share | 1.76 | 2.37 | 2.41 | 2.45 | 2.24 | 2.66 | 2.90 |
| Payout ratio | +94.14% | +214.86% | +117.82% | +177.56% | +130.30% | +141.02% | +143.80% |
| Retention ratio | +5.86% | -114.86% | -17.82% | -77.56% | -30.30% | -41.02% | -43.80% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E | 6y CAGR |
|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||
| Revenue · YoY | — | -12.24% | +68.44% | +7.67% | +50.13% | +4.67% | +8.65% | +18.13% |
| Gross profit · YoY | — | -25.96% | +77.47% | -0.19% | +113.12% | -16.21% | +11.74% | +17.39% |
| Profit | ||||||||
| Operating income · YoY | — | -14.46% | +111.16% | -6.13% | +138.07% | -18.00% | +8.98% | +23.84% |
| EBITDA · YoY | — | -12.75% | +107.65% | -4.08% | +127.34% | -15.48% | +8.26% | +23.88% |
| Net income · YoY | — | -22.71% | +151.98% | -15.40% | +60.17% | +10.62% | +5.49% | +20.62% |
| Operating | ||||||||
| EBIT · YoY | — | -14.46% | +111.16% | -6.13% | +135.35% | -17.73% | +10.83% | +24.02% |
| R&D · YoY | — | — | — | — | — | — | — | — |
| Per-share | ||||||||
| EPS · diluted · YoY | — | -41.18% | +86.36% | -28.29% | +29.25% | +20.40% | +0.95% | +3.58% |
| EPS · basic · YoY | — | -41.18% | +86.36% | -28.29% | +34.69% | +16.98% | +2.36% | +4.03% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 | 2027E | 2028E |
|---|---|---|---|---|---|---|---|
| Leverage | |||||||
| Total debt | $528.59M | $637.64M | $770.85M | $956.07M | $1.13B | $1.37B | $1.45B |
| Net debt | $517.16M | $616.06M | $738.58M | $912.84M | $1.1B | $1.32B | $1.39B |
| Net debt / EBITDA | 10.54 | 14.39 | 8.31 | 10.70 | 5.68 | 8.04 | 7.86 |
| Debt / equity | 1.26 | 1.08 | 1.02 | 1.08 | 1.12 | 1.12 | 1.06 |
| Debt / assets | +54.27% | +50.70% | +49.52% | +50.78% | +51.95% | +52.10% | +49.76% |
| Equity / assets | +43.21% | +46.94% | +48.54% | +46.93% | +46.43% | +46.44% | +46.78% |
| Coverage | |||||||
| EBITDA / interest expense | 2.46 | 1.48 | 2.06 | 1.55 | 2.91 | 2.16 | 2.09 |
| Operating income / interest | 2.35 | 1.39 | 1.96 | 1.44 | 2.84 | 2.04 | 1.99 |
| Interest expense | $19.92M | $28.87M | $43.09M | $54.96M | $66.62M | $75.84M | $84.72M |
| Liquidity | |||||||
| Current ratio | — | — | — | — | — | — | — |
| Quick ratio | — | — | — | — | — | — | — |
| Cash ratio | — | — | — | — | — | — | — |
| Working capital | $25.78M | $40.66M | $62.48M | $75.54M | $64.64M | — | — |
| Working capital / revenue | +25.04% | +45.02% | +41.06% | +46.12% | +26.28% | — | — |
Historical multiples · μ ± σ bands
3 fiscal-year-end observations from key_metrics. Mean is dashed; light-green band is ±1σ, light-red band ±2σ. The dot marks the most recent value; the cheap / fair / rich verdict uses z-score against the issuer's own history (yields inverted — a high yield is cheap).
EV / Salescheap · z -1.38
μ 11.0 · σ 1.1 · current 9.6
EV / FCFcheap · z -1.41
μ -10.1 · σ 1.4 · current -12.2
Earnings yieldcheap · z 1.05
μ 8.0% · σ 1.0% · current 9.0%
FCF yieldcheap · z 1.32
μ -18.3% · σ 2.1% · current -15.5%
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| P / E | — | — | — |
| P / B | — | — | — |
| EV / EBITDA | — | — | — |
| EV / Sales | 9.56x | 12.04x | 11.47x |
| Earnings yield | 9.0% | 6.7% | 8.3% |
| FCF yield | -15.5% | -20.7% | -18.7% |
Returns
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Gross margin | — | — | — |
| Operating margin | — | — | — |
| Net margin | — | — | — |
| ROE | 11.2% | 8.0% | 11.0% |
| ROA | 5.2% | 3.7% | 5.4% |
| ROIC | 8.2% | 3.7% | 5.4% |
Leverage & liquidity
| Metric | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Debt / equity | — | — | — |
| Net debt / EBITDA | 5.68 | 10.70 | 8.31 |
| Interest coverage | — | — | — |
| Current ratio | 0.00x | 0.00x | 0.00x |
| Quick ratio | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).