Does Earnings Surprise History Hold Any Clue for Capital Southwest (NASDAQ:CSWC)

Earnings results for Capital Southwest (NASDAQ:CSWC)

Capital Southwest Corporation is expected* to report earnings on 05/25/2021 after market close. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 3 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.43. The reported EPS for the same quarter last year was $0.4.

Analyst Opinion on Capital Southwest (NASDAQ:CSWC)

5 Wall Street analysts have issued ratings and price targets for Capital Southwest in the last 12 months. Their average twelve-month price target is $18.60, predicting that the stock has a possible downside of 27.26%. The high price target for CSWC is $24.00 and the low price target for CSWC is $16.00. There are currently 1 hold rating and 4 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Capital Southwest has received a consensus rating of Buy. The company’s average rating score is 2.80, and is based on 4 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $18.60, Capital Southwest has a forecasted downside of 27.3% from its current price of $25.57. Capital Southwest has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: Capital Southwest (NASDAQ:CSWC)

Capital Southwest is a leading dividend payer. It pays a dividend yield of 6.74%, putting its dividend yield in the top 25% of dividend-paying stocks. Capital Southwest has only been increasing its dividend for 1 years. The dividend payout ratio of Capital Southwest is 107.01%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, Capital Southwest will have a dividend payout ratio of 92.31% in the coming year. This indicates that Capital Southwest may not be able to sustain their current dividend.

Insiders buying/selling: Capital Southwest (NASDAQ:CSWC)

In the past three months, Capital Southwest insiders have bought more of their company’s stock than they have sold. Specifically, they have bought $21,450.00 in company stock and sold $0.00 in company stock. Only 7.35% of the stock of Capital Southwest is held by insiders. Only 31.37% of the stock of Capital Southwest is held by institutions.

Earnings and Valuation of Capital Southwest (NASDAQ:CSWC

Earnings for Capital Southwest are expected to grow by 7.06% in the coming year, from $1.70 to $1.82 per share. The P/E ratio of Capital Southwest is 32.78, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.58. The P/E ratio of Capital Southwest is 32.78, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 19.42. Capital Southwest has a P/B Ratio of 1.75. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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