| Metric | Grade | Score | Evidence | Horizon |
|---|---|---|---|---|
| FINAL ESEN MASTER SCORE | B+ | 72 | Mid-cap BDC with attractive yield (9.8%), moderate valuation (P/E 13.1x, forward 10.6x), solid EPS growth (23.3% YoY), but analyst consensus neutral to cautious; beta 0.73 suggests lower volatility anchor. | 6-12M |
| SA Quality/Value Composite | A- | 78 | PEG 0.56 signals growth discounting; dividend yield of 9.83% attractive for income; forward P/E of 10.6x represents modest premium to rates; revenue growth +13.5% YoY shows underlying business momentum. | 6-12M |
| Zacks Earnings Momentum | B | 68 | EPS growth YoY: +23.27%; flagged as "hyper_growth" in dataset; however, forward multiples compress, suggesting marginal deceleration expected. Limited visibility on forward guidance. | 1-3M |
| Institutional & Smart Money Flow | C+ | 55 | Recent analyst downgrades and narrow consensus near current price suggest mixed institutional conviction. Analyst average $22.67–$24.88 vs. $23.61 current: marginal upside 0–5% at consensus. Benzinga consensus "Neutral"; some sources cite "Sell" consensus. | 1-3M |
| Growth Sustainability & Moat | B | 70 | BDC model with mid-market focus (limited publicly disclosed moat); 13.5% revenue CAGR is respectable but not exceptional in growth equity context. Sector: Financial Services; regulatory environment moderately stable. | 6-12M |
| Valuation & Safety (Pre-Penalty) | A- | 80 | P/E 13.1x, forward 10.6x, PEG 0.56: all indicate reasonable entry; dividend yield 9.8% provides margin of safety; week52 high $24.43, low $19.37 suggest 22% trading range; beta 0.73 = lower systematic risk. | 6-12M |
| Penalty Overlay | C | 40 | Analyst consensus near current price limits upside. Conflicting analyst signals (some Sell, some Strong Buy); limited earnings date visibility in LIVE_DATA. BDC interest-rate sensitivity poses sector-specific risk if rates decline. | 1-3M |
| CONFIDENCE SCORE | B | 73 | Data coverage adequate (P/E, forward P/E, PEG, dividend yield, growth YoY); missing forward guidance and next earnings date limits 1-month precision. Analyst consensus available but divergent. | 6-12M |
| Volatility & Drawdown Risk | A | 84 | Beta 0.73 indicates 27% lower volatility than market; week52 range $19.37–$24.43 (22% amplitude) within normal bounds for mid-cap; dividend cushion 9.8% supports downside protection. | 6-12M |
| Crowding Risk Flag | B | 68 | Modest analyst coverage (~4–8 tracked analysts); no evidence of extreme short/long skew; BDC sector moderately crowded but CSWC has specific mid-market niche; institutional flow neutral-to-cautious. | 6-12M |
Capital Southwest Corp is a mid-sized Business Development Company (BDC) operating in the Financial Services sector with a market cap of $1.48B. Within the BDC peer set, CSWC's valuation metrics (forward P/E 10.6x) position it favorably relative to growth-adjusted comps, while its dividend yield (9.8%) sits at the higher end of BDC distributions. Revenue growth of 13.5% YoY demonstrates solid portfolio company performance; however, analyst consensus clustered near current price suggests limited near-term catalyst visibility. The stock's low beta (0.73) makes it a defensive allocation within higher-beta finance, suitable for income-oriented institutional and retail portfolios.
According to 5 analysts, the average rating for CSWC stock is "Buy," with a 12-month stock price target of $24.88, which is an increase of 4.45% from the latest price. Analyst price targets range from $24.50 (high, B. Riley Securities) to $20.50 (low, UBS) , with consensus at $22.67 . This reflects modest upside potential capped by neutral institutional positioning and limited near-term catalysts.
CSWC Stock Analysis & Forecast
Is CSWC a Good Investment in 2026?
Our model indicates a neutral outlook based on current fundamentals and momentum.
CSWC Stock Forecast
Based on recent earnings trends, valuation metrics, and sector performance, CSWC shows balanced risk-reward characteristics.
Should You Buy CSWC Now?
Investors should consider market conditions, volatility, and long-term positioning before taking a position in CSWC.