Capital Southwest Net Income vs. Shares Outstanding

CSWC Stock  USD 23.35  0.13  0.55%   
Based on Capital Southwest's profitability indicators, Capital Southwest may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Capital Southwest's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1995-12-31
Previous Quarter
14 M
Current Value
22.7 M
Quarterly Volatility
28.7 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Capital Southwest's Days Of Sales Outstanding is projected to decrease significantly based on the last few years of reporting. At present, Capital Southwest's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 87.6 M, whereas Total Other Income Expense Net is projected to grow to (70.1 M).
For Capital Southwest profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Capital Southwest to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Capital Southwest utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Capital Southwest's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Capital Southwest over time as well as its relative position and ranking within its peers.
  
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Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Capital Southwest. If investors know Capital will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Capital Southwest listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.16)
Dividend Share
2.29
Earnings Share
1.63
Revenue Per Share
4.371
Quarterly Revenue Growth
0.139
The market value of Capital Southwest is measured differently than its book value, which is the value of Capital that is recorded on the company's balance sheet. Investors also form their own opinion of Capital Southwest's value that differs from its market value or its book value, called intrinsic value, which is Capital Southwest's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Capital Southwest's market value can be influenced by many factors that don't directly affect Capital Southwest's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Capital Southwest's value and its price as these two are different measures arrived at by different means. Investors typically determine if Capital Southwest is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Capital Southwest's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Capital Southwest Shares Outstanding vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Capital Southwest's current stock value. Our valuation model uses many indicators to compare Capital Southwest value to that of its competitors to determine the firm's financial worth.
Capital Southwest is rated below average in net income category among its peers. It is rated below average in shares outstanding category among its peers creating about  0.57  of Shares Outstanding per Net Income. The ratio of Net Income to Shares Outstanding for Capital Southwest is roughly  1.75 . At present, Capital Southwest's Net Income is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Capital Southwest's earnings, one of the primary drivers of an investment's value.

Capital Shares Outstanding vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Capital Southwest

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
83.39 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Capital Southwest

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
47.69 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.

Capital Shares Outstanding Comparison

Capital Southwest is currently under evaluation in shares outstanding category among its peers.

Capital Southwest Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Capital Southwest, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Capital Southwest will eventually generate negative long term returns. The profitability progress is the general direction of Capital Southwest's change in net profit over the period of time. It can combine multiple indicators of Capital Southwest, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income158.3 M166.3 M
Income Before Tax84.6 M88.8 M
Total Other Income Expense Net-73.7 M-70.1 M
Net Income83.4 M87.6 M
Income Tax Expense1.2 M842 K
Net Income Applicable To Common Shares29.8 M46.6 M
Net Income From Continuing Ops83.4 M48 M
Interest Income160.7 M168.8 M
Net Interest Income117.7 M123.5 M
Change To Netincome3.3 M3.5 M
Net Income Per Share 2.05  1.44 
Income Quality(2.26)(2.15)
Net Income Per E B T 0.99  0.94 

Capital Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Capital Southwest. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Capital Southwest position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Capital Southwest's important profitability drivers and their relationship over time.

Use Capital Southwest in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Capital Southwest position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Capital Southwest will appreciate offsetting losses from the drop in the long position's value.

Capital Southwest Pair Trading

Capital Southwest Pair Trading Analysis

The ability to find closely correlated positions to Capital Southwest could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capital Southwest when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Capital Southwest - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Capital Southwest to buy it.
The correlation of Capital Southwest is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Capital Southwest moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Southwest moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Capital Southwest can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Capital Southwest position

In addition to having Capital Southwest in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Shipbuilding Railroad Equipment
Shipbuilding Railroad Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipbuilding Railroad Equipment theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipbuilding Railroad Equipment Theme or any other thematic opportunities.
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When determining whether Capital Southwest offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Capital Southwest's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Capital Southwest Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Capital Southwest Stock:
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For information on how to trade Capital Stock refer to our How to Trade Capital Stock guide.
You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
To fully project Capital Southwest's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Capital Southwest at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Capital Southwest's income statement, its balance sheet, and the statement of cash flows.
Potential Capital Southwest investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Capital Southwest investors may work on each financial statement separately, they are all related. The changes in Capital Southwest's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Capital Southwest's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.