CSWC (Capital Southwest) Moat Score: 3/10 (As of Jun. 25, 2026)


CSWC Capital Southwest Corp CSWC
57 GF Score
Price $23.05
GF Value $25.51
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Capital Southwest Moat Score?

Capital Southwest CSWC +0.48% 57 Moat Score is 3 as of Jun. 25, 2026. GuruFocus rates CSWC with a GF Score™ of 57/100 and a GF Value™ of $25.51 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,702 Asset Management companies, Capital Southwest ranks better than 90.72% on this metric.

Capital Southwest has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Capital Southwest has No Moat: Capital Southwest Corp operates in the competitive financial services sector with limited differentiation and low switching costs. The lack of significant competitive advantages results in a very weak moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Capital Southwest might have No Moat - Very weak/transient advantages.

Capital Southwest  (NAS:CSWC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Capital Southwest Moat Score Related Terms

CSWC vs BTT, HYT, NFJ: Moat Score Comparison

For the Asset Management subindustry, Capital Southwest's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Capital Southwest Moat Score vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Capital Southwest's Moat Score distribution charts can be found below:

* The bar in red indicates where Capital Southwest's Moat Score falls into.


CSWC
57GF Score
Capital Southwest Corp CSWC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Capital Southwest (CSWC) has a Moat Score of 3 as of Jun. 25, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Capital Southwest ranks #158 out of 1702 companies in the Asset Management industry, placing it in the top 9.3%.
Is Capital Southwest's Moat Score too high?
Capital Southwest's current Moat Score is 3. Based on the distribution chart, Capital Southwest ranks #158 out of 1702 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Capital Southwest has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Capital Southwest's Moat Score compare to BTT and HYT?
According to the Asset Management industry distribution chart, Capital Southwest ranks #158 out of 1702 companies for Moat Score. This places Capital Southwest in the top 9% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Asset Management company?
A good Moat Score depends on the Asset Management industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Capital Southwest's current Moat Score is 3. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Southwest stock overvalued right now?
Based on GuruFocus' analysis, Capital Southwest (CSWC) is currently considered Modestly Undervalued. The stock's GF Value™ is $25.51, compared to a current price of $23.05 — trading 9.6% below its estimated fair value. The current Moat Score is 3. Capital Southwest's overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Capital Southwest (CSWC), the current Moat Score is 3 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Capital Southwest (CSWC) Overvalued in 2026?

Based on GuruFocus' analysis, Capital Southwest stock appears to be undervalued. The current stock price of $23.05 is trading 9.6% below its estimated GF Value™ of $25.51. GuruFocus considers Capital Southwest to be Modestly Undervalued.

Key valuation signals for CSWC:

  • Moat Score: 3
  • GF Value™: $25.51 vs. price of $23.05 (9.6% below fair value)
  • GF Score™: 57/100 with 6 warning signs

No single metric tells the full story. See the CSWC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Capital Southwest Business Description

Other Exchanges SFW:Germany
Address 8333 Douglas Avenue, Suite 1100, Dallas, TX, USA, 75225
Capital Southwest Corp is a U.S.-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective is to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnerships with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien, and subordinated debt, preferred stocks, common stocks, and warrants. The primary source of revenue comprises interest income and dividend income from investments made as well as management fees.
57GF Score

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$23.05
Price
$25.51
GF Value