CAPITAL SOUTHWEST Reports Earnings Results for First Quarter of FY2024
August 17, 2023
🌥️Earnings Overview
On June 30, 2023, CAPITAL SOUTHWEST ($NASDAQ:CSWC) announced its earnings results for the first quarter of FY2024, reporting a total revenue of USD 30.3 million and net income of USD 23.8 million – an increase from the previous year’s figure of USD 2.5 million.
Market Price
The company’s stock opened at $21.7 in the morning and closed at the same price later in the day, a 0.4% increase from its previous closing price of $21.6. This positive movement in stock value on the back of strong earnings results speaks to the overall health of the company. The strong earnings result that was seen in the first quarter of FY2024 is indicative of CAPITAL SOUTHWEST‘s ability to grow and expand its business despite the difficult economic conditions.
The company’s financial performance is a testament to its sound management and strategic decisions. As such, investors are likely to remain positive on CAPITAL SOUTHWEST’s outlook for the rest of the fiscal year and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Capital Southwest. More…
| Total Revenues | Net Income | Net Margin |
| 83.27 | 54.4 | 65.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Capital Southwest. More…
| Operations | Investing | Financing |
| -227.1 | -0.28 | 237.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Capital Southwest. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.34k | 700.8 | 16.69 |
Key Ratios Snapshot
Some of the financial key ratios for Capital Southwest are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 269.3% | – | – |
| FCF Margin | ROE | ROA |
| -273.1% | 6.2% | 2.8% |
Analysis
GoodWhale has conducted an analysis of CAPITAL SOUTHWEST‘s financials. According to our Star Chart, CAPITAL SOUTHWEST has a low health score of 0/10 with regard to its cashflows and debt, making it less likely to sustain future operations in times of crisis. Additionally, we have classified CAPITAL SOUTHWEST as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Generally speaking, investors looking for high growth potential may find CAPITAL SOUTHWEST to be an attractive option. The company is strong in growth, medium in dividend and weak in asset, profitability. Investors who are looking for a more reliable option may want to look elsewhere. More…
Peers
The company’s competitors include Main Street Capital Corp, Fidus Investment Corp, and Apollo Investment Corp.
– Main Street Capital Corp ($NYSE:MAIN)
As of 2022, Main Street Capital Corporation has a market capitalization of $2.78 billion and a return on equity of 9.9%. The company is a business development company that provides long-term debt and equity capital to lower middle-market companies. Main Street’s investment objective is to achieve a high total return, primarily through significant capital appreciation and income from its portfolio investments. The company has invested in more than 400 companies since inception.
– Fidus Investment Corp ($NASDAQ:FDUS)
Fidus Investment Corporation is a publicly traded business development company primarily focused on providing tailored financing solutions to support the acquisition, recapitalization, and growth of middle-market companies. Fidus primarily invests in first and second lien loans, mezzanine debt, and equity securities.
As of 2022, Fidus Investment Corporation had a market cap of 460.64M and a return on equity of 13.01%. The company provides financing solutions to support the acquisition, recapitalization, and growth of middle-market companies. Fidus primarily invests in first and second lien loans, mezzanine debt, and equity securities.
Summary
Investors in CAPITAL SOUTHWEST should be pleased with the company’s first quarter FY2024 results as total revenue increased significantly from the prior year. Net income was reported at USD 23.8 million, a nearly ten fold increase from the prior year, which demonstrates strong growth potential for the company. With its impressive financials and strong outlook for future growth, CAPITAL SOUTHWEST is a solid investment opportunity for investors looking for quality returns.
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